Tuesday, August 26, 2008

IGM Financial

I invested in the company (TSX-IGM) in October 2006 and I have made 0% return. If it had not been for the dividends, I would have had a loss. Of course, I have not made anything on this stock this year. I expect to make money once this financial crisis is over.

The following values are all for the last 5 years to December 31, 2007, which is the last annual statement date. The Revenues have increased at 8.3% per year, and this is not bad. The increase in Earnings per Share (EPS) has not been bad at 12.5% per year. The increase in dividends has been a very good number at 15.6% per year. The closing price has increased at the rate of 17.9% per year. This is different from my figures above, as my figures in the first paragraph are from Quicken and they are figures from purchase date to the present date.

The Asset/Liability Ratio at 2.13 is very good. The Return on Equity (ROE) is good at 21% for 2007 and this is higher than the 5 year average of 19.6%. The Accrual Ratio is not good at 8.9%. Dividends have raised the 5 year average return by over 4%.

I still expect to do well in this stock and I will not be selling it because of the lack of a current profit. They are still raising their dividends as the last increase was in April this year. This is right on schedule. Their next scheduled dividend increase would be expected in October and this has already been declared. Their total dividend increases for 2008 will be 15.5%, which is close to the 5 year average of 15.6%. I will review this stock to see if it is a good buy tomorrow.

This is a premier mutual fund, managed asset and personal financial services company. The company has three operating units, Investors Group, Mackenzie Financial Corporation and Investment Planning Counsel Inc. This company is part of Power Financial group. Its web site is http://www.igmfinancial.com/english/.
See my spreadsheets on this company at www.spbrunner.com/stocks/igm.htm.

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets on web site.

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