1 Year Performance for Great-West Lifeco
Chart from Big Charts
Earnings per share for the last quarter rose 8%, and operating return on equity is close to 16%, the highest among Canada's life insurance companies. Earnings for 2012 are expected to be in the range of $2.05 per share, and with shares currently selling for about $22, that represents a significant value for shareholders.
At only 10 times 2012 earnings, Great-West Life provides an excellent earnings stream to its owners at a better valuation than the overall market and many other financial companies.
The dividend payout ratio (or percentage of the company's earnings that are returned to shareholders in the form of a dividend payment) is expected to be 55%, which is fairly low and sustainable over the longer-term. What is Great-West Life's Dividend Yield? 5.5%! In today's current low-yield environment, a dividend of this stature is hard to pass up, especially when it is backed by healthy earnings power.
For the Intelligent Investor, Great-West represents a strong value and a disciplined choice.
Cheers and Happy Investing.
Full Disclosure: Matthew Clarke owns or indirectly controls shares in Great West Life (TSE:GWO).