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Power Corporation of Canada     Symbol:  POW

FINANCIALS (See Below)      

POWER CORPORATION OF CANADA

POWER CORP. OF CANADA is an international management and holding company based in Canada.
Its principal subsidiaries are Power Financial Corp., Power Technology Investment Corp. and Gesca Ltee.

Subsidiaries of Power Financial include Great-West Lifeco, IGM Financial, London Insurance Group,
Canada Life Financial, Putnam Invest., LLC Investors Group, Mackenzie Financial Corporation, and its affiliate Pargesa Holding SA.

As a holding company, my traditional cash flow analysis will not necessarily apply as there are no
capital expenditures listed on the Statement of Cash Flows. Having said this, the company has a
long history of paying increasing dividends as the strength of the operating companies grow.

Historical yields over the last 5 years have ranged from a low of 1.92% to a high of 2.69%.

The current yield is 3.40 %, well above the historical norm.

Power Corporation has a wide moat in many of the businesses it owns, and as such
remains on my list of favorites in Canada for security of capital and dividend growth.
Coupled with a share price in Canadian funds, and  American investors have an excellent hedge
against a weak US dollar. 

Dividend History:    

2003   $ 0.4688    Yield       Low:  2.69%     High: 1.94%

2004   $ 0.5531    Yield       Low:  2.38%     High: 1.78%        

2005:  $ 0.65       Yield       Low:  2.30%     High: 1.92%

2006: 0.76125     Yield       Low:  2.69%     High: 2.09%

2007: 0.92125     Yield       Low:  2.75%     High: 2.20%

2008:  March 31   $ 0.24125
           June 30      $ 0.29

 

Coverage Initiated May 19  2008

C$33.690   Canadian Funds  ($ 1.00 CDN = $ 1.00 US)  See my Blog on Currency Exchange Rates

 

Open	-		Mkt Cap ($Mil)	13,646
High	-		EPS (ttm)	3.14
Low	-		P/E (ttm)	10.70
Bid	33.680		Forward P/E	10.06
Ask	33.690		PEG (est. 5 yrs)	-
Volume	-		Annual Div.	1.16
52-wk High 12/05	41.92		Yield	3.40
52-wk Low03/18	29.35		5-star Rating

 

 

OUR RATINGS CATEGORY

TIER 1: DTCF is historically decreasing over time while the dividends paid keeps increasing each year.

TIER 2: DTCF is historically constant over time dividends paid keeps increasing each year.

TIER 3: DTCF is historically increasing over time but dividends keep increasing each year.

TIER 4: DTCF is historically increasing over time but dividends keep constant each year.

TIER 5: DTCF is historically increasing over time and dividends falling.

TIER 1 and TIER 2 Ratings will generally offer the best opportunities to keep a growing dividend
as well as share appreciation. TIER 3 companies will require careful monitoring, however companies
with a strong franchise in TIER 3 would still be considered.

TIERS 4 & 5 are probably worth staying away from as the dividend could be at risk.

 

DIVIDEND POST RATING FOR BUD: 

 

NOTE: Virtual Media Works discloses all positions in its portfolio.
POW is currently held in our portfolio.

 

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