Power Corporation of Canada Shs Subord.Voting POW

Power Corp. Earnings: Great-West Continues To Be Key for the Parent Company; Dividend Raised by 7%

Power Corporation of Canada ended the year with a decent set of numbers that were mainly driven by Great-West Life’s performance. The firm reported adjusted net earnings of CAD 579 million or CAD 0.89 per share in the fourth quarter, compared with CAD 395 million or CAD 0.59 per share in the fourth quarter of the previous year. The company has declared an increase in quarterly dividend to CAD 56.25 cents per share, up 7.1% compared with the previous quarterly dividend. The current dividend represents a 5.6% dividend yield as per the current stock price. Power Corporation's adjusted net asset value, or NAV, stood at CAD 53.53 per share as of the end of fourth-quarter 2023, which compares with CAD 48.26 per share at the beginning of the quarter. The company has continued to allocate capital to buybacks given the difference in NAV and share price of the company and has repurchased approximately CAD 583 million of shares in 2023. We are maintaining our CAD 40.00 fair value estimate for the firm after incorporating the fourth-quarter results.