Are you looking to create a reliable source of passive income without taking on unnecessary risk? IGM Financial (TSX:IGM) might be one of those Canadian dividend stocks that don’t make headlines often but keep delivering where it counts. With a stable business model, a strong client base, and a long history of rewarding shareholders, IGM stock has surged 27% over the last year to currently trade at $44.29 per share with a market cap of $10.5 billion. At this market price, it offers an attractive 5.1% annualized dividend yield.
Before calculating how many IGM Financial shares it takes to generate $1,000 in annual dividend income, here’s a quick look at why this solid stock deserves a spot on your long-term portfolio.
A quick look at IGM’s business model
If you don’t know it already, IGM is one of Canada’s biggest wealth and asset management companies. In simple terms, it helps Canadians manage, grow, and invest their money through its two main businesses, IG Wealth Management and Mackenzie Investments.
IG Wealth focuses more on individual clients, offering financial planning services, while Mackenzie handles the investment management side, including mutual funds and exchange-traded funds (ETFs).
One big reason IGM stock has climbed nearly 27% over the last 12 months could be the confidence investors have in its consistency. At the end of 2024, the company had a record-breaking $270.4 billion in assets under management and advisement. That reflected a 12.6% year-over-year (YoY) jump from the year before, with strong client trust and growing momentum.
On top of that, IGM’s net client inflows have bounced back in a big way. In the last quarter ended December 2024, IGM pulled in $244 million in new money, compared to over $1.2 billion in outflows during the same period in 2023. This clearly reflected a large turnaround, helping it regain investors’ confidence.
Delivering solid growth even amid economic uncertainties
Another major factor that makes it a great dividend stock for cautious, income-focused investors is its ability to deliver solid financial growth even amid economic uncertainties. In the fourth quarter of 2024, IGM posted a 22% YoY (year-over-year) rise in its adjusted net profit to $250 million. Similarly, for the full year, adjusted earnings hit $939 million, up more than 11% from 2023.
Stronger performance in both wealth and asset management also drove its revenue up by 16.3% YoY last quarter. In fact, both IG Wealth and Mackenzie hit record asset levels.
Buy these many shares of IGM to get $1,000 in yearly income
In addition to its solid financial growth trends, IGM Financial is also actively focusing on improving its long-term growth outlook. Whether it’s through strategic partnerships like Wealthsimple and Rockefeller or by doubling down on digital tools and financial planning services, the company is quietly building a rock-solid foundation.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | QUARTERLY DIVIDEND / SHARE | TOTAL YEARLY PAYOUT |
| IGM Financial | $44.29 | 445 | $0.5625 | $1,001.25 |
| Prices as of March 28, 2025 |
And if you want to earn $1,000 in annual dividend income, you would need to own about 445 shares of IGM Financial. That translates to an upfront investment of roughly $19,709 at today’s market price. That said, you should always try to diversify your holdings, even if you’re confident in IGM Financial’s long-term prospects.
