Recent Buy – PWCDF


Yesterday my limit order executed purchasing shares of Power Corporation of Canada for my IRA at $22.98.  I placed these shares in my IRA as the US tax treaty with Canada coupled with Power Corp.’s Direct Registry status will result in $0 tax withholding on the dividend garnering a 4.36% annual return.

Power Corp. (PWCDF, POW.TO) operates primarily as four publicly traded entities with Power Financial (POFNF), Great-West Lifeco (GWO.TO) and IGM Financial (IGM.TO) the others each of which Power Corp. has retained 60-65% ownership.  Additionally, Power Corp. owns Power Energy and Square Victoria Communications Group.

What really got my attention were the underlying assets within the subsidiaries.  Great-West has multiple insurance companies plus Putnam Investments.  IGM owns Mackenzie Financial.  Power Financial through a joint venture has stakes in LafargeHolcim (cement), Pernod Ricard (liquor), Adidas (sports apparel, Total (petroleum) and more.  LaFargeHolcim with its’ US assets is particularly well suited to share in potential infrastructure investment (walls,bridges,etc.)

I also added to my Janus Capital (JNS) position after receiving – and voting in favor of their merger with Henderson Group.  The new company will be named Janus Henderson Group plc, traded on the NYSE under the symbol (pending) JHG, with London headquarters and a quarterly dividend payment scheme.  I wound up averaging down this position with the expectation of a stronger, post-Brexit, UK currency.