CI Financial and Why I Bought This Stock

You bought a wealth management company that sells mutual funds that you hate and abhorr?

Right?

So, why CIX.TO?

It's pretty beaten up, still making money and compounding income at a great clip so far. 

After the financial crisis they cut the dividend 50% from 10 cents down to 5 cents. This was not unusual for a lot of companies at the time.

Since then they've slow and steadily raised that dividend to now 18.5 cents a quarter.

Let's look at some of the numbers;

High Stock Price - $35.05
Now - $21.77
Price Paid (200 shares) - $20.47
P/E - 9.17
ROE - 36%
Yield 3.3%
Payout Ratio - 43%
FCF - $625M

Revenue and Earnings growth continue to move up.

The fact is as much as I would never own a mutual fund, many people still do.
Don't buy the fund, buy the company.

The stock is still way off it's all time high and for me is considered a low yielder. If you are looking for something different that has been beaten up and may provide significant potential to grow revenue and thereby give you some capital appreciation, this is one that I decided is worth that punt.

I bought it for my RRSP.

It has really taken a hit in the last 5 years and investors have thrown it away and have gotten frustrated with it. That's why I believe it's cheap. I also believe most of the risk here is to the upside.

I love stocks that have raised their dividends for 10 years and are still trading at a single digit price to earnings ratio.

From Yahoo:

CI Financial Corp. is a publicly owned asset management holding company. Through its subsidiaries, the firm manages separate client focused equity, fixed income, and alternative investments portfolios. It also manages mutual funds, hedge funds, and fund of funds for its clients through its subsidiaries. The firm was founded in 1965 and is based in Toronto, Canada with additional offices in Vancouver, Canada; Calgary, Canada; and Montreal, Canada.

My Final Take

I'm hoping to juice my returns a little bit with a stock that is rising off it's 1 year bottom of $17. It has recovered nicely. In the meantime I will collect the dividends and be patient. If it recovers to $30 or higher I'll be a happy camper.

This is just what I have done and not a recommendation for you to buy this stock. Do your own analysis and research before making any buying decision. 

Would you buy CIX? What other financial wealth management companies do you own?