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What is everyone's thoughts on PWO as a long hold in a dividend portfolio? I'm looking for more financial exposure and I'm drawn to the lower P/E of this stock (around 11.5) and high dividend yield. Their payout ratio is good at 52%. But as this is for long hold, things that are holding me back would be low interest rates driving down revenues of their holdings and the interest rates not likely rising for awhile. Also, the fact that more people are steering away from higher MER services. Good thing about them being a holding company though is they aren't solely reliant on those high MER mutual funds etc.

Anyways does anyone have any opinions on this one?
 

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I'll bite. The yield is good, but they haven't raised the dividend since 2008 which requires further investigation. Their major two holdings are Great-West Lifeco and Investors Group. They do have some other assets but those two are the majority of the revenues for Power Corporation. While Great-West Lifeco is not a bad company, I would suggest that Investors Group has more troubling issues, namely net redemptions, which is impacting revenues and profits. The very fact that you are interested in getting away from high MER services is the problem that Investors Group is facing. Don't think you can profit from this - investors everywhere are waking up. Unlike other sellers of mutual funds, like large financial companies such as the Canadian banks, there are no alternatives for Investors Group - this is all they do. I would avoid Power Corporation or Power Financial, and if you like Great-West Lifeco you could take a position in them, at a higher yield (4.9% vs 4.3%).
 

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I'll continue to hold until they stop paying or decrease their dividend. I own it for yield. Capital appreciation has not been there for 5+ years. Cash flow remains pretty good for POW, so if they are making money, shareholders are.

POW owns 66% of PWF, of which, PWF owns most of GWO:

http://www.powercorporation.com/en/about/organization-chart/

I would agree with doctrine that IG is going to have some trouble down the road as investors wake-up regarding MF fees but the wake-up call has been going on for well over a decade now.
 

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Sorry for resurrecting a dead thread but I wasn't able to find anything elsewhere in my search for PWF/POW that seemed to match.

I was away for most of December. As a result I missed this announcement.

https://www.powercorporation.com/en...rate-structure-and-refocused-strategy-122591/

Over at FWF, there were a few posts selling POW and PWF on the news. I see the price hit $37.00 but has since. scaled back into the $35.xx range. Most talking heads are advising to hold (not really a factor for me as I don't let their opinion weigh into my decision to sell but thought it was worth mentioning. I would have sold on the announcement date but now that the initial excitement has passed I am a little unsure as to how to proceed. I doubt it will climb back to $37 but that is what I placed my sell order at for PWF.TO today. Does anybody know if the Dec record date for the dividend has been cancelled? Has anybody here chose to hold?

Thanks in advance to those that weigh in.

Cheers
 

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I think what's in this statement right here is worth the wait to hold onto your position. We'll have to see if their "streamlining" benefits us as shareholders.....and I'm all for a divy increase....finally!

-Power Corporation to undertake further initiatives to benefit shareholders in conjunction with the Reorganization, including implementation of a significant near-term operating cost reduction plan, reduced financing costs and a dividend increase-.
 

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Something strange is going on with their earnings. Their book value dropped by almost $1.50 a share more than I would have expected. They didn't have a net loss, so what gives? It just seems like they adjusted the net value of everything down a bit but it's not a loss, somehow. I keep looking at POW every year or two and keep finding a reason not to bother. Merging everything together was supposed to simplify POW, not make it harder to understand.
 

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I agree. I keep hearing how the company has made things simpler but I just don't see it yet. I inherited POW from old ownership of PWF. Like @KaeJS and @doctrine I opted for more MFC today. I believe it is much easier to understand the company and a better price. Hopefully I have scratched the buying itch for now. I will continue to hold POW for now.
 
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