Power Corporation (POW): You Might Already Use Its Biggest Growth Bet

Power Corp is the least self-explanatory name on this list — it doesn't sell anything directly to you. But if you've ever used Wealthsimple, you've already interacted with a business it majority-owns.

What Power Corp Actually Does

Power Corporation of Canada is a Montreal-based international management and holding company, controlled by the Desmarais family, that owns controlling stakes in a portfolio of financial services businesses rather than operating a single business itself. Its two largest publicly-traded holdings are Great-West Lifeco (a major insurance and retirement services company) and IGM Financial (which owns Mackenzie Investments and IG Wealth Management) — together these account for the large majority of Power's value.

The Wealthsimple Stake

Here's the detail most people don't know: Power Corporation, together with IGM Financial and its own investment arm, holds a majority ownership stake (over 50%) in Wealthsimple — the same Wealthsimple that's become one of the most popular places for Canadians to actually buy XDIV, XEQT, VFV, and the other ETFs covered on this site. As Wealthsimple's valuation has grown into the billions, it's become an increasingly significant contributor to Power's overall net asset value.

Why It's a Dividend Holding Despite the Fintech Bet

Power Corp's core insurance and asset management businesses (through Great-West and IGM) produce the same kind of steady, regulated cash flow that makes banks and insurers dividend-index staples. The Wealthsimple stake and other alternative-asset investments sit on top of that stable base as a higher-growth component, rather than being the reason it qualifies for a dividend-quality index in the first place.

Related Calculators

Frequently Asked Questions