This Stock Could Be a Retirement Game-Changer

This Canadian retirement stock combines strong recent gains, growing financial businesses, and reliable quarterly dividends.

Key Points
  • Power Corporation stock has surged about 64% over the last year while still offering an annualized dividend yield of roughly 2.8%.
  • The company’s second-quarter adjusted net profit rose about 10% YoY with the help of strong contributions from its core businesses.
  • It returned $1.5 billion to shareholders in the first half of 2026 through dividends and share repurchases.

No one wants to approach their retirement years wondering whether they saved enough or whether their portfolio can keep supporting them once the paycheques stop. That’s why I think a great retirement stock should do more than simply pay a dividend. Ideally, a retirement stock should be capable of growing the value of my investment for years while steadily returning cash along the way.

That said, Power Corporation of Canada (TSX: POW) offers a reliable combination of both. Through its major holdings, it gives exposure to retirement services, insurance, and wealth management businesses. In this article, I’ll explain why Power Corporation’s mix of financial businesses, dividends, and long-term growth potential could make it a retirement game-changer.

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A great retirement stock with multiple growth engines

If you don’t know it already, this Montreal-based holding company has major holdings such as Great-West Lifeco and IGM Financial. It also has interests in businesses such as Wealthsimple and alternative asset manager Sagard.

Lately, Power Corporation stock has been on an impressive run as its shares have surged about 64% over the last year. As a result, it now trades at $95.28 per share, giving it a market capitalization of about $54.5 billion. On top of those gains, the stock offers a dividend yield of roughly 2.8% at the current price.

The recent rally in POW stock could mainly be attributed to rising value across several of Power Corporation’s underlying investments. Let’s take a closer look.

Strong businesses are supporting the retirement story

Power Corporation’s adjusted net asset value climbed nearly 32% from the end of 2025 to $112.94 per share at the end of June 2026. More importantly for retirement investors, several of its core businesses continue to grow.

In the second quarter, the company’s adjusted net profit climbed nearly 10% year-over-year (YoY) to $974 million. At the same time, its adjusted earnings per share (EPS) also rose to $1.55 from $1.38.

Its subsidiary Great-West’s adjusted net earnings in the latest quarter rose 11% YoY to $1.3 billion with the help of continued momentum in its retirement and wealth businesses.

Meanwhile, IGM’s adjusted net earnings jumped 31% YoY to $330 million. Its assets under management and advisement climbed nearly 21% from a year ago.

More importantly, Power Corporation is also benefiting from growth beyond these traditional businesses. Wealthsimple reached 3.6 million clients by the end of June, while its assets under administration soared 84% YoY. Similarly, Sagard’s assets under management reached US$46.9 billion after it acquired Unigestion.

More ways to build retirement wealth

POW’s appeal as a retirement stock becomes even clearer when you consider how it balances returning capital to shareholders with investing for future growth. During the first six months of 2026, the company returned $1.5 billion to shareholders, including $800 million in dividends and $700 million through share repurchases.

At the same time, Great-West is expanding its retirement business through Empower’s acquisition of Milliman’s retirement plan and benefits administration business. This acquisition is expected to add roughly US$130 billion in client assets and 1.5 million plan participants to Empower’s Workplace Solutions platform.

Clearly, Power Corporation brings several attractive retirement-building qualities together in one investment. Its expanding financial businesses, growing asset values, quarterly dividends, and significant capital returns could help investors generate income while building long-term wealth. That definitely makes it worth a closer look for retirement portfolios today.

Fool contributor Jitendra Parashar has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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