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Great-West Lifeco (GWLIF) provides life insurance, health insurance, retirement products, asset management, record-keeping services, and reinsurance products in Canada, the United States, and Europe.The Canada business contributes approximately 31% of adjusted earnings and has leading market positions in group insurance, group retirement, and individual insurance.The company operates the second-largest record-keeping business under the Empower brand in the United States, with an earnings contribution from the country approximating 26%.Great-West Lifeco also offers various products across Europe markets with a strong presence in the UK, Ireland, and Germany. The Europe segment contributed around 21% of adjusted earnings and the reinsurance business accounts for around 22% of adjusted earnings.The company was founded in 1891 and is based in Winnipeg, Canada. Great-West Lifeco Inc. operates as a subsidiary of Power Financial Corporation.Three key data points gauge Great-West Lifeco or any dividend paying firm.The key three are:(1) Price(2) Dividends(3) ReturnsThose three keys also best tell whether any company has made, is making, and will make money.
GWLIF Price
Share price rose 2.8% over the past year from $32.09 to $33.00, as of Tuesday’s market close.In the past 3 years the company’s share price has rarely been less than $20.70 nor more than $36.19. That all-time high price was reached in November 27.If shares trade in the range of $27.00 to $37.00 this next year, the recent $33.00 share price might grow to $34.60. Of course, FBP shares could also drop about the same $1.60 estimated amount, or more.My $1.60 price upside estimate is based on the average of one yearprice gains over the past five years.
GWLIF Dividend
Great-West Lifeco has paid variable quarterly dividends since December, 2003. The company’s most recent Q dividend of $0.40 was declared November 6th to shareholders of record prior to December 3rd, and the dividend is payable December 31st. A forward looking annual dividend of $1.60 yields 4.85% per Tuesday’s closing price.
GWLIF Returns
Putting it all together, a $3.20 estimated annual gross gain per share shows up by adding Great-West Lifeco’s annual $1.60 dividend to the estimated price upside of $1.60, totals that $3.20 gross gain.A little over $1000 buys 30 shares at Tuesday’s $33.00 share price.A $10 broker fee (if charged), collected half at purchase and half at sale, might take about $0.33 per share out of the $3.20 gross-gain to give us a net gain of $2.87 X 30 shares = $86.10 for about a 8.6% estimated net gain on the year.Furthermore, the $48.50 annual estimated dividend income from $1k invested in GWLIF is almost 1.5 times more than the $33.00 single-share price. By these numbers, GWLIF may be an ideal financial dividend dog.Therefore, you may want to pounce on Great-West Lifeco. It is a soon to be 134 year-old variable quarterly dividend paying insurance company with a 22 year dividend record.The exact track of Great-West Lifeco future price and dividend will entirely be determined by market action and company finances.Remember the best measure of stock value is through direct ownership of shares.More By This Author:Current Report: First BanCorp
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