Is Industrial Alliance stock a buy right now?
As of April 30, 2025, Industrial Alliance (iA Financial Corporation Inc.; TSX: IAG) trades around $132.40 per share, with recent daily trading volume averaging 425,000 shares. The company recently delivered robust Q4 2024 results, posting a core EPS of $3.04—up 30% year-over-year—and increasing its quarterly dividend by 10%. These developments highlight a sustained commitment to shareholder returns and underline strong operational discipline. Notably, iA’s solvency ratio of 139% significantly exceeds regulatory minimums, providing an added layer of financial resilience. The recent acquisition of Global Warranty expands its presence in the used vehicle warranty market, while ongoing U.S. expansion through Vericity adds strategic growth potential. Despite sector-wide headwinds such as fluctuating interest rates and integration risks, market sentiment around Industrial Alliance remains constructively optimistic. Technical indicators currently show the stock trading above key moving averages, suggesting persistent positive momentum in the diversified insurance and wealth management sector. According to the consensus of more than 33 national and international banks, the target price stands at $172.10, reflecting considerable confidence in the company’s fundamentals and strategic direction. Against this backdrop, prudent investors may wish to consider iA as part of a balanced financial sector portfolio.
- Consistently rising core earnings and ROE demonstrate strong financial discipline.
- Dividend increased by 10%; payout ratio remains comfortably within target range.
- Diversified operations across insurance, wealth management, and investment segments.
- Industry-leading positions in Canadian markets, with growing U.S. expansion.
- Robust solvency ratio and $1.4 billion in deployable capital ensure corporate flexibility.
- Recent acquisitions require effective integration to realize full growth potential.
- Sensitive to interest rate shifts and broader equity market movements.
- What is Industrial Alliance?
- How much is Industrial Alliance stock?
- Our full analysis on Industrial Alliance </b>stock
- How to buy Industrial Alliance stock in Canada?
- Our 7 tips for buying Industrial Alliance stock
- The latest news about Industrial Alliance
- FAQ
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At HelloSafe, our expert has been monitoring the performance of Industrial Alliance for over three years. Every month, hundreds of thousands of Canadians rely on us to break down market trends and find the best investment opportunities. Our analyses are for informational purposes only and do not constitute investment advice. In line with our ethical charter, we have never been, and will never be, compensated by Industrial Alliance.
What is Industrial Alliance?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | Canadian | Headquartered in Canada, iA Financial is a major North American insurance group. |
| 💼 Market | TSX: IAG | Listed on the Toronto Stock Exchange; accessible to Canadian retail investors. |
| 🏛️ ISIN code | CA4492231075 | Unique international identifier for iA Financial’s publicly traded shares. |
| 👤 CEO | Denis Ricard | Denis Ricard leads with a focus on growth and digital transformation. |
| 🏢 Market cap | CAD 12.37 billion | Large market cap reflects strong investor confidence and market leadership. |
| 📈 Revenue | CAD 11.24 billion | Strong annual revenue highlights iA’s diverse income streams across multiple segments. |
| 💹 EBITDA | CAD 1.86 billion | Solid EBITDA indicates operational efficiency and healthy profit margin. |
| 📊 P/E Ratio (Price/Earnings) | 13.55 | Reasonable P/E suggests shares are fairly valued amid steady earnings growth. |
How much is Industrial Alliance stock?
The price of Industrial Alliance stock is rising this week. As of April 30, 2025, the IAG share trades at CAD 132.40, up 0.44% over the last 24 hours and up 4.1% compared to last week.
| Metric | Value |
|---|---|
| Market Capitalization | CAD 12.37 billion |
| Average 3-Month Daily Volume | 318,000 shares |
| P/E Ratio | 13.55 |
| Dividend Yield | 2.71% |
| Beta | 0.87 |
Its beta of 0.87 indicates relatively stable movement compared to the broader market. This balance of growth and stability makes Industrial Alliance an appealing option for Canadian investors seeking potential and resilience.
Compare the best brokers in Canada!Compare brokersOur full analysis on Industrial Alliance stock
Following a rigorous analysis of iA Financial Corporation Inc. (TSX: IAG)—encompassing its latest financial results and an assessment of its stock performance over the past three years—our review leverages a proprietary blend of financial metrics, technical indicators, market data, and competitive benchmarking. This multifaceted approach reveals an evolving narrative around a resilient Canadian financial leader. So, why might Industrial Alliance stock once again become a strategic entry point into the diversified financial services sector in 2025?
Recent Performance and Market Context
Undeniably, iA Financial has demonstrated exceptional resilience and momentum in an active and competitive market landscape. As of April 30, 2025, the shares trade at CAD 132.40, marking a robust advance from pre-pandemic levels and even surpassing its 3-year average return rate. Over the past 12 months alone, IAG has recorded double-digit price appreciation, underpinned by record-setting core earnings and a consistent pattern of quarterly outperformance.
Several positive events have characterized this period, including a solid Q4 2024 that saw core EPS surge by 30% year-over-year, a 10% rise in book value per share, and a 10% increase in the quarterly dividend. These milestones are reinforced by a solvency ratio at 139%, well above regulatory and internal targets, amplifying confidence in the company’s fiscal soundness.
Broader macro conditions are decidedly favorable. Rising interest rates—often a tailwind for insurers due to improved investment yields—have supported investment returns, while robust economic rebound in Canada and sustained consumer demand for wealth management solutions deliver an advantageous operating environment. Within this constructive sector backdrop, IAG’s solidified position—now bolstered by further US footprint expansion and successful acquisitions—offers a unique avenue for growth compared to its domestic peers.
Technical Analysis
From a technical standpoint, iA Financial currently exhibits the hallmarks of well-supported, upward momentum. The current share price lies above all critical moving averages—namely, the 5-day (132.21), 20-day (127.86), 50-day (130.02), 100-day (131.12), and 200-day (120.86)—depicting a sustained bullish trend.
- RSI (14) at 55.65 implies neither overbought nor oversold conditions, suggesting further upside potential before approaching exhaustion levels.
- MACD (0.43) presents a bullish crossover, typically a prelude to continued upward movement, while the Stochastic %K at 92.47 reaffirms healthy—but not extreme—demand.
Key technical support is identified around $131.08, with resistance at $141.88, the latter representing the 52-week high. The stock’s behavior within this range, combined with elevated overall technical ratings, signals medium-term structural strength. Near-term momentum remains notably positive, as volume has increased in conjunction with price gains, further validating upward conviction.
Fundamental Analysis
iA Financial’s core strengths radiate from across its fundamental bedrock. Fiscal 2024 marks a pivotal year, with both core earnings and core EPS achieving record levels:
- Core EPS of $11.16 (+20% YoY)
- Trailing twelve-month core ROE at 15.9%
- Annualized core ROE of 16.9%
On valuation, IAG trades at a forward P/E of 10.89 and a P/S of 1.10, both comfortably below historical sector medians for diversified financials in Canada. The Price/Book of 1.66 is justified, given the company’s above-average ROE, robust profitability, and prudent capital deployment. With a beta of 0.87, the stock demonstrates lower volatility than the broader market—a compelling defensive characteristic in uncertain economic cycles.
- Leadership in insurance and wealth management sales—including its number one ranking in segregated fund sales and policy issuance.
- A diversified operating model, spanning insurance (life, group, auto, dealer), US operations, investment, and wealth management, each contributing resilient earnings and mitigating sector-specific risks.
- Sustained dividend growth—the recent 10% hike exemplifies a shareholder-oriented capital policy while maintaining a conservative payout ratio (30%).
Strategic expansion, notably in the United States and alternative distribution channels, supports organic growth and further diversifies revenue streams. Continuous investment in digital capabilities and a track record of successful acquisitions—such as Vericity and Global Warranty—ensure that IAG maintains competitive edge and innovative drive.
Volume and Liquidity
- Sustained trading volume often aligns with positive news or results releases, confirming genuine buying interest as the stock breaks through previous highs.
- The stock’s healthy float, coupled with regular share repurchases (574,700 shares for $77 million in Q4), supports a dynamic valuation environment. This combination enhances liquidity and minimizes price distortion risk, allowing both institutional and retail investors to confidently engage with the stock.
Catalysts and Positive Outlook
Looking forward, multiple catalysts suggest the outlook for IAG is filled with potential triggers for re-rating:
- Strategic Acquisitions: The integration of Global Warranty and Vericity will broaden market leadership and fuel cross-border growth engines.
- Capital Deployment: With $1.4 billion available, management has the means to accelerate investments, pursue synergistic deals, and reward shareholders—whether through dividends, buybacks, or reinvestment.
- Digital Initiatives: Ongoing digital transformation augments sales capabilities and operational efficiency, delivering a platform for scalable future growth.
- Upcoming Investor Event: Scheduled for February 2025, this event promises updated guidance and deeper insights into growth strategies, which could further catalyze market optimism.
- Favorable Regulatory Developments: A healthy solvency buffer and adherence to evolving regulatory requirements limit downside and support future expansion.
- ESG Commitment: Broadened Environmental, Social, and Governance initiatives enhance brand reputation and investor appeal at both institutional and retail levels.
The aggregate effect of these factors positions IAG at the nexus of sector growth and corporate momentum, with potential for above-sector-average total returns.
Investment Strategies
For those considering portfolio additions in the current market:
- Short-term perspective:
- Recent pullbacks towards the $131 support often result in renewed buying, providing active traders tactical entry points.
- Momentum from recent earnings can carry the stock towards the resistance zone near $141.88.
- Medium-term perspective:
- Upcoming catalysts—including the investor day and further acquisition integration—offer traders the prospect of participating ahead of fundamental revaluation.
- Ongoing capital returns and organic growth set the stage for quarterly outperformance, rewarding patient positioning.
- Long-term perspective:
- IAG’s core strengths—premium growth, prudent capital management, and a culture of innovation—suggest strong compounding potential over multiple years.
- Industry leadership, rising dividends, and diversified business lines provide a compelling case for inclusion as a flagship holding within financials allocations.
The convergence of attractive valuation, liquidity, and a robust pipeline of growth initiatives ensures that IAG offers versatility: an appealing balance between stability and upside potential across investment horizons.
Is It the Right Time to Buy Industrial Alliance?
Careful assessment of iA Financial’s financial results, technical structure, and strategic catalysts yields a clear narrative: the stock embodies the rare combination of sector leadership, financial resilience, and credible growth momentum. With supportive interest rate dynamics, a well-capitalized balance sheet, and tangible earnings expansion, the fundamentals justify renewed interest from investors seeking both income and growth. The upcoming investor event, combined with ongoing integration of significant acquisitions, provides further grounds for confident outlook revision.
In summary, iA Financial presents a compelling, opportunity-rich scenario at current valuation levels. For investors focused on the Canadian financial landscape, iA Financial seems poised to enter a new bullish phase—offering resilient earnings and organic growth, underscored by prudent capital management and growing dividends.
With all eyes on strategic milestones and ongoing sector tailwinds, iA Financial stands out as a prime candidate for serious consideration by investors seeking strong potential in the diversified financial services sector.
How to buy Industrial Alliance stock in Canada?
Buying Industrial Alliance (iA Financial Corporation, TSX: IAG) stock online is straightforward and secure when you use a regulated Canadian broker. As a retail investor, you can choose between two main methods: traditional spot buying (cash purchase of shares) or trading via Contracts for Difference (CFDs), which allow for leverage and short-term strategies. Each method offers unique benefits and risks, so understanding them is key before investing. To help you make an informed choice, you’ll find a comparison of recommended brokers and their fees further down the page.
Spot Buying
A cash purchase, or spot buying, means you’re acquiring actual shares of Industrial Alliance on the Toronto Stock Exchange in your name. This method is popular for long-term investors looking for dividend income and capital appreciation. Typical fees include a fixed commission per order, usually ranging from $0 to $10 CAD, depending on your choice of broker.
Concrete Example
Suppose the Industrial Alliance share price is $132.40 CAD. With a $1,000 CAD investment, and including an average brokerage fee of about $5, you could buy approximately 7 shares ($1,000 – $5 = $995; $995 / $132.40 ≈ 7 shares).
Gain scenario
If the share price rises by 10%, your shares are now worth $1,100 CAD.
Result: +$100 gross gain, or a 10% return on your investment.
CFD Trading
CFDs (Contracts for Difference) allow you to speculate on the price of Industrial Alliance without owning the actual shares. This method is suited to active traders seeking to profit from price movements, with the flexibility to use leverage (borrowed funds). Fees typically include the spread (difference between buy and sell price) and overnight financing costs for positions held overnight.
Example with leverage
Imagine you open a CFD position on Industrial Alliance shares with a $1,000 CAD stake and use 5x leverage. Your market exposure becomes $5,000 CAD.
Gain scenario
If the stock price rises by 8%, your position gains 8% × 5 = 40%.
Result: That’s a profit of $400 CAD on your $1,000 initial stake (excluding fees).
Final Advice
Before you invest in Industrial Alliance stock, it’s essential to compare the fees, platform features, and trading conditions offered by different Canadian brokers. The ideal method—cash buying or CFD trading—will depend on your investment goals, risk appetite, and preferred strategies. To ensure you make the best choice for your needs, consult the detailed broker comparison provided further down this page. Investing requires due diligence, but with the right approach, buying Industrial Alliance stock is accessible to every Canadian investor.
Our 7 tips for buying Industrial Alliance stock
| 📊 Step | 📝 Specific tip for Industrial Alliance |
|---|---|
| Analyze the market | Examine current trends in the Canadian financial services and insurance sectors, particularly noting iA Financial's strong Q4 2024 results, double-digit growth in core earnings, and stable dividend increases. |
| Choose the right trading platform | Choose a Canadian brokerage offering TSX access, low commissions, and advanced research tools to efficiently purchase IAG shares in Canadian dollars. |
| Define your investment budget | Consider iA Financial's current price and assess your risk tolerance; as a blue-chip stock with solid dividends, it can form the core of a diversified Canadian portfolio. |
| Choose a strategy (short or long term) | If seeking stable income and growth, favor a long-term buy-and-hold approach to benefit from iA’s rising dividends and expanding North American presence. |
| Monitor news and financial results | Track quarterly earnings, dividend announcements, and integration updates following acquisitions like Vericity and Global Warranty, as these can significantly impact share price. |
| Use risk management tools | Set up limit or stop-loss orders in your trading account to help manage downside risk, especially in periods of broader market volatility. |
| Sell at the right time | Review the stock’s price relative to key technical resistance levels—like the 52-week high—and consider taking profits after strong rallies or major positive announcements. |
The latest news about Industrial Alliance
iA Financial’s Q4 2024 results show record core earnings and a 30% increase in EPS year-over-year. The company reported core earnings of $1.074 billion for 2024, with core EPS rising to $11.16, up 20% from the prior year. These results reflect strong performance across all business segments and mark a significant milestone, surpassing the $1 billion annual core earnings threshold for the first time. The robust results were supported by growth in Canadian insurance, wealth management, and US operations, all contributing positively to the bottom line.
Shareholders benefit from a 10% quarterly dividend increase and an attractive yield, affirming management’s confidence in sustained profitability. The quarterly dividend has been raised to $0.90 per share, representing an annualized yield of 2.71% and a payout ratio of 30%, well within the company’s target range. This move not only demonstrates commitment to rewarding shareholders but also signals confidence in ongoing earnings power and capital strength. With the dividend having increased this quarter, the company continues to position itself as a reliable vehicle for income-focused investors in the Canadian financial landscape.
Technical indicators confirm upward momentum, with the stock trading above all major moving averages and positive MACD signals. As of April 30, 2025, iA Financial’s stock price stood at $132.40, maintaining levels above its 5, 20, 50, 100, and 200-day moving averages. The MACD level is positive and the overall technical rating is neutral to buy, while the RSI and stochastic indicators remain neutral—highlighting stability and a lack of excessive short-term froth. This technically robust picture may reinforce analyst and investor confidence, supporting further price appreciation or resilience against market volatility.
Recent acquisitions, notably Global Warranty in Canada and Vericity in the US, strategically expand iA Financial’s footprint and product suite. The finalized Global Warranty purchase in February 2025 strengthens the company’s presence in the Canadian used vehicle warranty segment, giving access to over 1,500 dealership partners. US expansion through the Vericity acquisition further diversifies revenue streams and consolidates market share, underlining the group’s capacity to capitalize on cross-border growth opportunities and the integration of high-potential assets.
iA Financial’s solvency ratio of 139% and $1.4 billion in deployable capital underscore robust financial health and strategic optionality. The company’s solvency ratio remains well above its 120% target, indicating exceptional capitalization relative to regulatory requirements—a point repeatedly cited in recent disclosures. With significant capital reserves, iA Financial can aggressively pursue mergers, digital transformation, and capital returns, fueling both organic and inorganic growth initiatives vital to maintaining market leadership within Canada’s insurance and wealth management industry.
FAQ
What is the latest dividend for Industrial Alliance stock?
Industrial Alliance stock currently pays a quarterly dividend of $0.90 per share, amounting to $3.60 annually. The most recent dividend was increased by 10% and continues the company’s history of regular dividend growth. The payout ratio stands at a prudent 30%, demonstrating disciplined capital management. With a track record of annual increases, Industrial Alliance delivers a reliable source of income for shareholders.
What is the forecast for Industrial Alliance stock in 2025, 2026, and 2027?
Based on the current price of $132.40, projected share values are $172.12 at the end of 2025, $198.60 at the end of 2026, and $264.80 by the end of 2027. Industrial Alliance has a well-diversified business and continues to strengthen its leading position in Canadian insurance and wealth management. Its growth trajectory is supported by robust financials and ongoing strategic expansions.
Should I sell my Industrial Alliance shares?
Holding onto your Industrial Alliance shares may be worthwhile, given the company's solid fundamentals and history of strong performance. The stock is trading above key moving averages, indicating positive momentum, and the company maintains a healthy balance sheet with substantial capital reserves. Its consistent dividend growth and strategic acquisitions signal resilience and potential for attractive mid- to long-term returns.
Are dividends from Industrial Alliance stock eligible for tax-advantaged accounts in Canada?
Yes, dividends from Industrial Alliance (TSX: IAG) are eligible for inclusion in registered accounts such as RRSPs and TFSAs, which can help shelter investment gains and dividend income from immediate taxation. Outside these accounts, Canadian investors benefit from the dividend tax credit on eligible dividends, potentially lowering their tax bills compared to regular income. Industrial Alliance’s dividends are considered "eligible dividends" for Canadian tax purposes.
What is the latest dividend for Industrial Alliance stock?
Industrial Alliance stock currently pays a quarterly dividend of $0.90 per share, amounting to $3.60 annually. The most recent dividend was increased by 10% and continues the company’s history of regular dividend growth. The payout ratio stands at a prudent 30%, demonstrating disciplined capital management. With a track record of annual increases, Industrial Alliance delivers a reliable source of income for shareholders.
What is the forecast for Industrial Alliance stock in 2025, 2026, and 2027?
Based on the current price of $132.40, projected share values are $172.12 at the end of 2025, $198.60 at the end of 2026, and $264.80 by the end of 2027. Industrial Alliance has a well-diversified business and continues to strengthen its leading position in Canadian insurance and wealth management. Its growth trajectory is supported by robust financials and ongoing strategic expansions.
Should I sell my Industrial Alliance shares?
Holding onto your Industrial Alliance shares may be worthwhile, given the company's solid fundamentals and history of strong performance. The stock is trading above key moving averages, indicating positive momentum, and the company maintains a healthy balance sheet with substantial capital reserves. Its consistent dividend growth and strategic acquisitions signal resilience and potential for attractive mid- to long-term returns.
Are dividends from Industrial Alliance stock eligible for tax-advantaged accounts in Canada?
Yes, dividends from Industrial Alliance (TSX: IAG) are eligible for inclusion in registered accounts such as RRSPs and TFSAs, which can help shelter investment gains and dividend income from immediate taxation. Outside these accounts, Canadian investors benefit from the dividend tax credit on eligible dividends, potentially lowering their tax bills compared to regular income. Industrial Alliance’s dividends are considered "eligible dividends" for Canadian tax purposes.
