AGF.B is hitting new highs these days, up 34% in the past year. But it has not created long term value, having been as high as $37 in 2007. The stock is cheap at 6X earnings, but is mainly trading on its 5% dividend. The dividend was raised in April 2024 but was slashed by more than two-thirds in 2015. The dividend is still less than half of what it was in 2015. Family controlled, we think the company should have been sold in the M&A asset management frenzy of the mid 2000s. But the family hung on, and the industry shifted to lower margin products and became much more competitive. EPS growth looks good this year, but far less so in 2025 (a decline expected). It is a classic value stock. OK for income, and it 'could' move under the right market conditions. Lower interest rates and strong markets will help it, of course. But based on its long term history, it is quite hard to give it a strong endorsement.
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