Nice-West Lifeco (TSX: Nice) inventory is an intriguing passive revenue and development play to take a look at proper now. The Canadian monetary sector large is present process a administration transition following the July 1, 2025 retirement of former CEO Paul Mahon after practically 4 many years with the insurance coverage and asset administration powerhouse. The inventory has generated greater than 11% in complete shareholder returns to date this yr, and Canadian traders hold asking the perennial query about Nice-West Lifeco inventory: Is it a purchase, promote, or maintain?
Nice-West Lifeco’s administration change in July
July 2025 marks a major, but well-managed, transition: the retirement of long-time CEO Paul Mahon and the appointment of David Harney as the brand new Nice-West Lifeco CEO. Harney is a seasoned firm veteran with over 35 years of expertise, most not too long ago main its European and Capital Danger Options operations.
The corporate portrays the transition as deliberate and easy, emphasizing the depth of its management bench and continuity in technique. Harney has expressed sturdy confidence in assembly the corporate’s enhanced monetary targets. Harney inherits a behemoth that’s having fun with development momentum. The brand new blood might need some new enterprise development tips beneath his sleeve. I see no compelling cause but to low cost GWO inventory for this administration change in July.
Why to purchase and maintain GWO inventory
Some of the compelling causes to think about Nice-West Lifeco inventory in July 2025 is its constant earnings development profile, significantly inside its capital-efficient retirement and wealth administration segments. The primary quarter of 2025 noticed a exceptional 24% year-over-year surge in Lifeco-Retirement base earnings, complemented by a 13% enhance in Lifeco-Wealth base earnings. This development might proceed as property beneath administration (AUM) enhance.
By the top of March 2025, the corporate’s complete property beneath administration (AUM) hit a staggering $1 trillion, and complete consumer property exceeded $3 trillion. Scale is vital within the monetary providers sector. This substantial scale positions GWO as a fee-earning blue-chip inventory, providing stability, regular capital development, and dependable passive revenue for a core portfolio.
Additional, the corporate’s diversified enterprise mannequin additionally means no single phase accounts for greater than a 3rd of its normalized earnings. This provides to its earnings stability. Moreover, roughly 93% of the corporate’s property had been in fastened revenue going into the second quarter, with 99% of these monetary property being funding grade, reflecting a prudent and low-risk funding strategy as commerce wars threatened to change asset danger profiles in 2025.
Most noteworthy, Nice-West Lifeco additionally stands out as a dependable supply of passive revenue. The inventory presently presents a quarterly dividend, yielding a pretty 4.7% yearly. The corporate has been on a dividend-growth spree since 2015, and administration is dedicated to this shareholder-friendly strategy. The dividend paid in 2025, at $0.61 per share quarterly, is a strong 9.9% greater year-over-year. Over the previous decade, Nice-West has raised dividends at a median charge above 6% yearly. There are sturdy indications that shareholders can stay up for one other decade or extra of dividend development.
Nice-West inventory’s compelling complete returns profile
Past dividends, Nice-West Lifeco has additionally delivered spectacular complete shareholder returns. Capital beneficial properties over the previous 5 years have exceeded 16% yearly, outperforming key benchmarks, together with the S&P/TSX Composite. Because of its beneficiant dividend coverage, complete returns to traders in Nice-West Lifeco inventory have surpassed 22% yearly. The corporate’s dedication to returning worth to shareholders extends to share repurchases. Administration intends to spend $500 million on buybacks in 2025, along with repurchases to offset worker compensation plan dilution.
An funding in Nice-West Lifeco inventory has handily outperformed the TSX over the previous half decade.
From a valuation perspective, Nice-West Lifeco inventory presently trades at a ahead price-to-earnings (P/E) ratio of 10.3. Its ahead price-earnings-to-growth (PEG) ratio of 1.2 means that shares are pretty valued given the monetary large’s earnings development outlook.
Investor takeaway
Contemplating Nice-West Lifeco’s sturdy market place, constant earnings development in key segments, enticing and rising dividend, spectacular (historic) complete shareholder returns, and disciplined monetary administration, Nice-West Lifeco inventory seems to be a compelling “Purchase and Maintain” for traders searching for stability, revenue, and long-term capital appreciation in July 2025.