Industrial Alliance stock is undoubtedly one of the best yield stocks on the Canadian market.
Investors can add it to their stock market portfolio in order to generate a stable and regular income through an online broker.
How much can you make with Industrial Alliance stock?
Get up-to-date and precise information on Industrial Alliance stock with its current price, dividend yield, analysis and our opinion.
This page is for information purposes only and does not constitute investment advice. Remember that investing can be risky.
Want to buy shares in Industrial Alliance: Our key take-aways
Stock exchange: TSX
- Stock Index: S&P/TSX 60
- Dividend 2021: $1.2
- Dividend forecast 2022: N/A
- Performance over 1 year: +22.27%
Should I buy Industrial Alliance stock?
Buying Industrial Alliance stock is, in our opinion, an excellent strategy if you want to generate a regular and stable income.
Indeed, since 2018, the group has been paying a stable and regular income to its shareholders with a return close to 5% annually.
It is also possible that this stock will grow in the years to come and thus offer an advantageous capital gain in the longer term.
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How can I buy shares in Industrial Alliance ?
To buy Industrial Alliance on the stock market:
- Find an online broker offering stock investments.
- Open your trading account by filling out a simple form.
- Deposit funds into your account.
- Search for the stock
- Place a buy order to add Industrial Alliance to your stock portfolio.
How much are Industrial Alliance shares?
See price chart below to follow Industrial Alliance stock price in real time.
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Why Industrial Alliance shares could go up:
At the moment, various elements are in favour of an upward trend in the Industrial Alliance share price. The following points should be noted:
- A solid company with strong ratings: the Industrial Alliance group enjoys significant financial strength and positive ratings from the main credit rating agencies.
- Growth in all segments: the group's growth is not only coming from its core insurance segment, but from all its activities, including niche businesses.
- Advantageous positioning: Industrial Alliance is currently positioned among the leaders in its industry in Canada.
- An excellent reputation: Similarly, the company enjoys an excellent reputation among its clients and prospects.
- Varied products and services: Industrial Alliance has perfectly developed and diversified its portfolio of products and services over the last few years and now offers a wide range of solutions that cover a large part of the market's needs.
- International growth opportunities: A good international expansion strategy could help the Industrial Alliance group to gain further growth and profitability.
Why Industrial Alliance shares could go down:
Of course, not all the signals about Industrial Alliance stock are so positive, and there are a number of factors that point to a decline in the stock's price:
- High dependence on the domestic market: the fact that Industrial Alliance still generates almost all of its revenue in Canada may represent a risk in the event of a local economic recession.
- Cyclical activities: the group's sector of activity is particularly cyclical and this can have a negative influence on the company's short-term revenue.
- Impact of governmental decisions: in the same way, Industrial Alliance, like other companies in this sector, is also subject to changes in governmental decisions.
- Numerous frauds: Finally, the group must of course protect itself against insurance frauds, which can cost it a lot of money every year.
Can I buy Industrial Alliance stock online?
Yes! You can buy Industrial Alliance shares online. For many buys this is the best way to do it. Here's why:
- The commissions are lower
- You can choose your own investments
- You benefit from analysis and decision support tools
- You can invest in stocks directly or through derivatives like ETFs.
How can I sell my Industrial Alliance shares?
In Canada and with a traditional investment account, you can only sell Industrial Alliance shares if you have them in your portfolio.
If you want to short Industrial Alliance shares, you will have to use a margin account or bet on a drop in its price using derivatives such as options or CFDs.
What investment vehicles in Canada can hold Industrial Alliance stock?
Industrial Alliance shares can be placed in several different savings vehicles including"
- RRSPs: these registered retirement savings plans offer funds that are accessible at the time of retirement and offer an income tax deferral.
- TFSAs: tax-free savings accounts is an incredibly popular short-and long-term tax-free investment vehicle.
- Margin accounts: This account offers leverage and allows you to borrow against the value of the securities you hold to make other investments. It allows you to sell short.
- Cash accounts: This account allows you to trade stocks on North American markets only.
It is possible to buy Industrial Alliance shares individually and in cash, but also in a group with other securities.
To buy shares for cash, all you have to do is go through an online broker and place your buy orders for the number of shares you are interested in, from the platform at your disposal.
If you wish to invest in a basket of securities including Industrial Alliance shares, you can do so via an ETF or exchange-traded fund or from a mutual fund.
Industrial Alliance share price history over 10 years:
Industrial Alliance dividends and payment dates
In 2021, the Industrial Alliance group paid a dividend of $1.2 per share to its shareholders, representing a yield of 4.73%.
The group has not yet communicated the amount of the future dividend to be paid in 2022.
Industrial Alliance's dividend is paid in four installments, in March, June, September and December.
|Dividend: payout 2021||Payout 1||Payout 2||Payout 3||Payout 4|
|Dividend per stock||$0.30 per stock||$0.30 per stock||$0.30 per stock||$0.30 per stock|
What is the dividend yield for Industrial Alliance over the last 10 years?
The yield on Industrial Alliance shares is obtained by dividing the annual dividend by the annual average price.
A stock's yield provides key information about a company's dividend policy and its evolution over time and performance.
Annual gross shareholder return = Total dividend for the year ÷ average share price for the same year
The 10-year average return = Sum of annual returns ÷ 10
What analysts are saying about Industrial Alliance stock:
A critical analysis of Industrial Alliance stock:
The data from the fundamental analysis of Industrial Alliance shares give positive long-term signals with the following information:
- A reiterated growth target: the group reiterated its earnings per share growth target of 10% at the investor day. It expects to achieve a return on equity of 12.5% to 14% in 2022 and up to 15% in 2023.
- Strategic investments: The company has also made a number of investments to boost its growth, including $500 million in technology between 2021 and 2025.
- Increasing US revenue: while the company has often been criticized for its dependence on the Canadian market, the contribution of its US operations to total earnings is expected to increase from 13% to 20% before 2025 thanks to acquisitions and organic growth.
- Positive analyst recommendations: the analysts who cover this issue all currently recommend the stock as Buy or Outperform with an average price target of $75.
- An attractive solvency ratio: the group's solvency ratio is 130%, above the 110% to 116% range, which demonstrates the company's financial strength.
A technical analysis of Industrial Alliance stock:
As for the technical analysis of this stock, we are seeing rather negative signals in the long-term with the following indicators:
- The RSI is currently at 51.58, which gives a neutral signal on Industrial Alliance.
- The stochastic indicators are also giving neutral signals on this stock.
- The MACD is at the 0.64 level, which is a strong sell signal.
- The simple and exponential moving averages MMA10 and MMA20 are sending sell signals and the MMA30 and 50 are sending buy signals.
- Note that the next technical supports for the stock are located at 24.06 and 23.33 and that the next resistances are at 25.47 and 26.15
Who is Industrial Alliance?
The Industrial Alliance Group is a Canadian insurance and wealth management company. Through its various subsidiaries, this company offers:
- Life and health insurance products
- Savings and retirement plans
- Mutual funds
- Mortgage loans
- Home and auto insurance
- Credit, replacement and extended warranty insurance and other ancillary products for dealer services
- Other financial products
The company's products and services are offered on an individual and group basis throughout Canada and the United States. The 5 segments in which the company operates are
- Individual Insurance
- Individual Wealth Management
- Group Insurance
- Group Savings and Retirement
- Activities in the United States.
Who are Industrial Alliance’s competitors?
Several major competitors of Industrial Alliance operate in the Canadian and U.S. market, including
- SunLife Financial: this Canadian financial services company is best known as a life insurance company and is also involved in general investment management.
- Great-West Lifeco: This Canadian insurance company specializes in life insurance and also administers medical insurance plans. It has many subsidiaries, making it the largest insurance company in Canada.
- Manulife: Manulife Insurance Company operates in Canada and the United States as well as in 19 other countries around the world. It is one of the largest insurance companies in Canada and North America and the fifth largest in the world.
- Empire Life Insurance Company: a Canadian life insurance and financial services company offering life, health, individual investment and group products through independent distribution partners.
- SSQ Insurance: this diversified mutual company was founded in 1944 in Quebec City and offers insurance and investment products. The group currently employs over 2,000 people and has 3 million clients.
Who are Industrial Alliance’s partners?
While Industrial Alliance has many enemies in the market, it also has strategic allies through its partnerships, such as:
- Canderel: the two companies have signed a strategic partnership agreement in the field of real estate investments. Canderel has been selected as the strategic partner for the operational management and maintenance of Industrial Alliance's real estate assets in Quebec.
- CGI: This is an extension of an existing partnership that has been established between the two companies, long-time partners, until 2026. CGI will support IA's strategic growth as a preferred information technology partner.
- CAAQ: This company has established a partnership with Prysm, a subsidiary of Industrial Alliance, to offer new home and auto insurance products, including the anti-stress policy.
- École des sciences de la gestion: the group has finally set up a partnership with the École des sciences de la gestion to allow the group's personnel to improve their management skills.