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Great-West Lifeco Launches 5.70% Straight Perpetual Preferred Share (GWO.PR.Z)

Great-West Lifeco Launches New 5.70% Straight Perpetual Preferred Share

Great-West Lifeco Inc. (TSX: GWO) has entered the preferred share market with a new offering of Non-Cumulative First Preferred Shares, Series Z (TSX: GWO.PR.Z), carrying a fixed annual dividend rate of 5.70%. The shares are priced at $25.00 per share, with the offering expected to close on or about June 22, 2026.

This marks the first new straight perpetual preferred share issuance from a major Canadian financial institution in 2026 — a notable development in a market that has been dominated by rate reset structures and split share offerings in recent years.

What Makes GWO.PR.Z Different

Unlike the rate reset preferreds that have dominated new issuance since 2008, GWO.PR.Z is a straight perpetual — meaning it carries a fixed dividend rate for life, with no reset date and no maturity. The shares are callable at the issuer's option, typically at $25.00 plus accrued dividends.

This structure makes GWO.PR.Z behave more like a bond substitute than a traditional rate reset preferred. For investors, that means:

  • Predictable income: The 5.70% rate is fixed for the life of the security

  • No reset risk: Unlike rate reset preferreds, there's no uncertainty about what the dividend will be in 5 years

  • Interest rate sensitivity: The trade-off is that the share price will fluctuate with interest rates, much like a long-duration bond

    • How 5.70% Compares

    At 5.70%, GWO.PR.Z offers a competitive yield within the current preferred share landscape:

  • PerpetualDiscount index average: ~5.59% current yield

  • PerpetualPremium index average: ~5.69% current yield

  • Insurance Straight index average: ~5.49% current yield

    • The 5.70% rate positions GWO.PR.Z at the upper end of the perpetual preferred yield range, which is appropriate for a straight perpetual with no reset feature.

    Great-West Lifeco: A Strong Issuer

    Great-West Lifeco is one of Canada's largest insurance and financial services companies, with operations spanning Canada, the United States, and Europe through its subsidiaries including Canada Life, Irish Life, and Empower. The company currently has multiple preferred share series outstanding, all of which have maintained consistent dividend payments.

    The company's existing preferred shares trade with strong liquidity and have historically been well-supported by institutional investors seeking stable, investment-grade income.

    Who Should Consider GWO.PR.Z

    This new issue is best suited for:

  • Income investors seeking a predictable, fixed-rate stream without reset uncertainty

  • Portfolio builders looking to add insurance sector exposure to their preferred share holdings

  • Buy-and-hold investors who prefer the simplicity of a straight perpetual over complex reset structures

    • Investors who prefer the potential upside of rate reset preferreds — where dividends could increase if interest rates rise — may find the fixed 5.70% rate less appealing compared to reset issues currently offering similar or higher projected yields.

    The Bottom Line

    GWO.PR.Z fills an important gap in the Canadian preferred share market. After years of rate reset dominance, income investors now have a new straight perpetual option from one of Canada's strongest financial institutions. At 5.70%, it offers a competitive fixed yield for those who value income predictability over reset optionality.

    The offering is expected to close around June 22, 2026, and the shares will trade on the TSX under the symbol GWO.PR.Z.

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    Yields quoted are annualized based on the $25.00 issue price. This article is for informational purposes only and does not constitute investment advice.