I’ve found myself increasingly looking at companies that I haven’t looked at in a while. My watchlist has been growing accordingly. Power Corporation (TSX:POW) is certainly one of those companies.
Like a few other Canadian holding companies listed on the Toronto Stock Exchange (TSX), Power Corp. is the parent company of a number of businesses. Power Corp. essentially acts as an income company for investors.
As can be expected, the company’s share price is down approximately on par with the broader TSX, as all companies are being revalued. Investors are assessing the future potential cash flow generation underpinning equities.
One thing Power Corp. has going for it is the company’s structure as an income investment. I do believe that over the next 10-20 years, bond yields will remain low as Central Banks around the world continue to pump liquidity into financial markets as growth slows on a global level.
Finding quality income-generating equities like Power Corp. to buy and hold on to will become more of the norm, in my view, as companies will continue to provide yields that, in many cases, exceed the yield one might otherwise receive on bonds.
Power Corp. is a solid company with a decent balance sheet. I’m putting this company on my watch list.
Invest wisely, my friends.
