Is it a good company at a reasonable price? This company seems to be doing better than it has for some time. They just did a 10% increase in dividends after dividends have been flat for some 11 years. This is certainly a good sign. The stock price has rising lately and the shareholders have gotten some nice capital gains over the past 5 and 10 years. I suspect the company will do better in the future. Analysts suggests that there will be growth over the next 12 months. However, testing is showing that the stock price is rather high at present.
I do not own this stock of IGM Financial Inc (TSX-IGM, OTC-IGIFF). I am following this stock because I used to own this stock. The stock was on Mike Higgs' list of dividend growth stocks and on the other Dividend lists at that time. I owned this stock from 2006 to 2011. I sold because I decided to rationalizing my portfolio. Selling ones that did not make it into my core and buying ones that did of the same type.
When I was updating my spreadsheet, I noticed I owned this stock for almost 5 years from 2006 to 2011. I made a total return of 3.14% per year with a capital loss of 1.06% and dividends of 4.2%. If I had kept this stock to 2026, some 19 years, I think I would have made a total return of 6.98% per year with 1.94% from capital gains and 5.04% from dividends. I am rather glad I did not keep this stock. Also, see the total return chart below. People who bought this stock 15 and 20 years ago, did not do well.
If you had invested in this company in December 2015, for $1,024.86 you would have bought 29 shares at $35.34 per share. In December 2025, after 10 years you would have received $652.50 in dividends. The stock would be worth $1,792.49. Your total return would have been $2,444.99. This would be a total return of 10.86% per year with 5.75% from capital gain and 5.12% from dividends.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $35.34 | $1,024.86 | 29 | 10 | $652.50 | $1,792.49 | $2,444.99 |
The current dividend yield is moderate with dividend increase after 11 years of no increases. The dividend yield is moderate (2% to 4% range) at 3.90%. The 5, 10 year median dividend yields are good (5% to 6% ranges) at 5.55% and 5.97%. The historical median dividend yield is moderate at 4.37%. The last dividend increase was in 2015. I noticed that analysts are expecting dividend to start to rise again in 2026.
The Dividend Payout Ratios (DPR) are currently fine. The DPR for 2025 for Earnings per Share (EPS) is good at 49% with 5 year coverage high at 53%. The DPR for 2025 for Adjusted Earnings per Share (AEPS) is good at 49% with 5 year coverage at high at 58%. The DPR for 2025 for Cash Flow per Share (CFPS) is good at 39% with 5 year coverage high at 52%. The DPR for 2025 for Free Cash Flow (FCF) is high at59% with 5 year coverage at 69%. The FCF for 2025 varies from $900M to $986M. I am using the $900M value.
| Item | Cur | 5 Years |
|---|---|---|
| EPS | 48.49% | 53.32% |
| AEPS | 48.81% | 57.74% |
| CFPS | 39.12% | 51.99% |
| FCF | 59.21% | 68.73% |
Debt Ratios are fine. The Long Term Debt/Market Cap Ratio for 2025 is high at 0.79 and currently at 0.73. I also have at the Long Term Debt/Covering Assets Ratio for 2025 which is good at 0.53 and currently at 0.53 because this is an important ratio for a financial. The Liquidity Ratio for 2025 is good at 3.11 and 3.11 currently. The Debt Ratio for 2025 is good at 1.68 and 1.68 currently. The Leverage and Debt/Equity Ratios for 2025 are fine at 2.48 and 1.48 and currently at 2.48 and 1.48.
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term R | 0.79 | 0.73 |
| Lg Term R A | 0.53 | 0.53 |
| Intang/GW | 0.27 | 0.25 |
| Liquidity | 3.11 | 3.11 |
| Liq. + CF | 3.50 | 3.12 |
| Debt Ratio | 1.68 | 1.68 |
| Leverage | 2.48 | 2.48 |
| D/E Ratio | 1.48 | 1.48 |
The Total Return per year is shown below for years of 5 to 35 to the end of 2025. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2020 | 5 | 0.00% | 17.65% | 12.36% | 5.29% |
| 2015 | 10 | 0.41% | 10.87% | 5.75% | 5.12% |
| 2010 | 15 | 0.00% | 6.79% | 2.38% | 4.41% |
| 2005 | 20 | 0.00% | 5.64% | 1.57% | 4.07% |
| 2000 | 25 | 0.62% | 8.48% | 3.69% | 4.79% |
| 1995 | 30 | 2.64% | 13.57% | 6.91% | 6.66% |
| 1990 | 33 | 5.36% | 16.38% | 8.84% | 7.54% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are 8.47, 10.32 and 12.17. The corresponding 10 year ratios are 8.97, 11.15 and 12.69. The corresponding historical ratios are 12.47, 14.85 and 17.20. The current ratio is 12.74 based on a stock price of $63.64 and EPS estimate for 2026 of $4.99. The current ratio is between the median and high ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable but above the median.
I also have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Adjusted Earnings per Share Ratios are 8.67, 10.83 and 12.73. The corresponding 10 year ratios are 9.07, 11.15 and 12.88. The corresponding historical ratios are 10.40, 12.55 and 14.64. The current ratio is 12.53 based on a stock price of $63.64 and EPS estimate for 2026 of $5.08. The current ratio is between the median and high ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable but above the median.
I get a Graham Price of $66.28. The 10-year low, median, and high median Price/Graham Price Ratios are 0.71, 0.85 and 1.03. The current P/GP is 0.96 based on a stock price of $63.64. The current ratio is between the median and high ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable but above the median.
I get a 10-year median Price/Book Value per Share Ratio of 1.50. The current ratio is 1.67 based on a stock price of $63.64, Book Value of $8,944M and Book Value per Share of $38.04. The current ratio is 10% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.
I also have a Book Value per Share estimate for 2026 of $39.78. This implies a ratio of 1.60 based on a stock price of $63.64 and a Book Value of $9,354M. This ratio is 5.5% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.
I get a 10-year median Price/Cash Flow per Share Ratio of 11.64. The current ratio is 27.91 based on a stock price of $63.64, Cash Flow per Share estimate for 2026 of $2.28 and Cash Flow of $536M. This ratio is 140% above the 10 year ratio. This stock price testing suggests that the stock price is relatively expensive. (I do wonder about the estimate as it is lower than it has been for several years and is a 48% drop from Cash Flow per Share for 2025.)
I get an historical median dividend yield of 4.37%. The current ratio is 3.90% based on a stock price of $63.64 and Dividends of $2.48. The current ratio is 11% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable but above the median.
I get a 10 year median dividend yield of 5.97 %. The current ratio is 3.90% based on a stock price of $63.64 and Dividends of $2.48. The current ratio is 35% below the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively expensive.
The 10-year median Price/Sales (Revenue) Ratio is 2.81. The current P/S Ratio is 3.73 based on Revenue estimate for 2026 of $4,011M, Revenue per Share of $17.06 and a stock price of $63.64. The current ratio is 33% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.
Results of stock price testing is that the stock price is probably expensive. The dividend yield testing is saying that the stock price is relatively expensive and it is confirmed by the P/S Ratio testing. However, the dividend yield tests are not the best because the dividends have been flat for years. However, most of the rest of the testing is saying that the stock price is relatively reasonable but above the median. I note that the stock price is just off its recent high.
When I look at analysts’ recommendations, I find Strong Buy (1), Buy (1) and Hold (6). The consensus would be a Hold. The 12 month stock price consensus is $69.75 with a high of $82.00 and a low of $62.00. The consensus stock price of $69.75 implies a total return of 13.50% with 9.60% from capital gains and 3.90% from dividends based on a current stock price of $63.64.
Analysts’ opinion on Stock Chase is not available. However, I found an analysts opinion at here. Rajiv Bhatia said that there is some fear that AI will impact Wealth Management. Amy Legate-Wolfe on Motley Fool says this stock is a passive-income gem on the TSX. Jitendra Parashar on Motley Fool says this is a safe Canadian Dividend stock with consistent returns and financial resilience. The company put out a press release via Newswire about their annual results for 2025.
Simply Wall Street via Yahoo Finance reviews this stock and says its fair value is $68.13. Simply Wall Street gives the stock 3 and one half stars and gives no warnings.
IGM Financial is a leading nonbank Canadian wealth and asset management company. Power Corporation of Canada, which also holds a majority stake in Great-West Life co, has a majority stake (62%) in IGM. Its web site is here IGM Financial Inc.
The last stock I wrote about was about was Intact Financial Corp (TSX-IFC, OTC-IFCZF) ... learn more. The next stock I will write about will be Choice Properties REIT (TSX-CHP.UN, OTC-PPRQF) ... learn more on Wednesday, March 11, 2026 around 5 pm. Tomorrow on my other blog I will write about Dividend Stocks March 2026 … learn more on Tuesday, March 10, 2026 around 5 pm
This blog is meant for educational purposes only and is not to provide investment advice. I am not a licensed professional investment advisor. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
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