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Summary
- The financial services sector accounts for 32.1 per cent of the S&P/TSX Composite Index.
- Over 13 million shares of Power Corp were traded on Friday.
- Power Corp's market cap is over C$ 20 billion and it offers an 11.57 per cent return on equity.
The financial sector accounts for 32.1 per cent of the S&P/TSX Composite Index. Thus, it is not surprising that the investors often eye this sector to build strong portfolios.
Apart from the big five Canadian banks, which comprise retirement funds and popular dividend stocks, there are other stocks available that could boost your portfolio. One such stock could be the Power Corporation of Canada (TSX:POW). On March 26, the stock was on the top of the list of most active companies traded in Canadian markets. Over 13 million shares were traded, and the scrips were priced C$ 33.34 apiece at market close on Friday.
The multinational company that offers financial services like insurance and wealth management across North America, Europe and Asia is outperforming its peers and at the moment its stock is worth looking out for.
Here's a look at the company's financials:
The corporation has major stakes in Canadian insurance firm Great-West Lifeco and wealth and asset management company IGM Financial. Last year in December, a subsidiary of Lifeco, known as Empower Retirement successfully acquired Massachusetts Mutual Life Insurance Company, making Empower the second-largest retirement services provider in America.
©Kalkine Group 2021
Benefiting from the acquisitions, Power Corp's net earnings attributable to shareholders increased by a good percentage in the fourth quarter. The company earned C$ 623 million, up by 248 per cent year-over-year (YoY).
The income from the corporation's investments and alternative businesses was C$ 78 million in 2020, against a loss of C$ 35 million in 2019.
Power Corp's market cap is over C$ 20 billion and it offers an 11.57 per cent return on equity. The company's stock grew almost 46 per cent in a year and 14.3 per cent year-to-date (YTD).
On the dividend front, it offers a quarterly-dividend of C$ 0.448 with a yield of 5.37 per cent.
The above constitutes a preliminary view and any interest in stocks should be evaluated further from an investment point of view.
