Power the Income in Your Portfolio With This Dividend Stock Yielding 4.6%

Power Financial Corp. (TSX:PWF) is a diversified management and holding company with interest in the financial services sector in Canada. It is a subsidiary of Power Corporation of Canada. The stock was up 0.08% at the bottom of the noon hour on October 30. Shares have gone up 7.4% in 2017 and 14% year over year.

The company released its second quarter results on August 4th. It posted net earnings of $545 million or $0.76 per share compared to $505 million or $0.71 per share in the previous fiscal year. Its top financial services holdings include Great-West Lifeco Inc., IGM Financial Inc., and the Geneva-based Pargesa Holding SA.

As of June 30th Power Financial held 67.6% of Lifeco’s common shares, with Lifeco contributing $900 million to adjusted net earnings over a 6-month period compared to $872 million the previous year. Power Financial owns 61.5% of IGM Financial’s common shares. Its contribution to the net earnings of Power Financial for the first 6 months of 2017 has been $220 million compared to $208 million the previous year.

Pargesa Holding contributed $92 million to Power Financial’s adjusted net earnings for the first 6 months compared to $85 million in 2016.

Power Financial offers a dividend of $0.41 per share representing a dividend yield of 4.6%. The company is still exploring the selling of some major assets and shares have no yet recovered to levels before the 2007-2008 crisis. In addition to the income there is still room for growth here.

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