A portfolio of stocks I've been building since September 3, 2019, named Volio, will eventually hold 52 dividend dogs. Volio is the fifth portfolio I've built (at a one dividend dog per-week pace) since 2014. Five portfolios = V for Volio!
Today I'm reviewing the third of five financial services sector stocks poised to join my Volio folio this week. This could be my thirty-sixth pick for Volio!
That financial services sector includes twenty industries ranging from Asset Management to 8 kinds of Banks, Credit, Exchanges, 6 kinds of Insurance, Savings, and all such financial concerns.
My subject today is a world-renowned life insurance company named, Manulife Financial
Corporation. Its trading ticker symbol is MFC. This is my second report for this portfolio on Manulife Financial. Most recently I reported on them on December 27, 2019.
Manulife provides life insurance and wealth management products and services to individuals and group customers in Canada, the United States, and Asia.
Manulife is one of Canada’s Big Three Life Insurance companies (the other two are Sun Life and Great-West Life). Manulife also has asset management operations with assets under management or administration exceeding CAD $1 trillion.
In the US Manulife's John Hancock branded products are probably best known.
Manulife Financial Corporation was founded in 1887 and is headquartered in Toronto, Canada.
I use three key data points to gauge dividend equities or funds like Manulife Financial Corp:
(1) Price
(2) Dividends
(3) Returns
Besides those three, several other keys will finally unlock an equity or fund in which to invest, or not.
Those three basic keys, however, best tell whether a company has made, is making, and will make money.
MFC Price
Manulife's price per share closed at $11.70 yesterday. A year ago their price was $17.96. Market price dropped $6.26 or almost 35% in the past year.
Assuming Manulife's stock trades in the range of $7 to $17 this next year, its recent $11.70 price might rise by $1.30 to reach $13.00 by May 7, 2021.
MFC Dividends
Manulife's most recent declared quarterly dividend was $0.2112 paid March 19th. That $0.2112 Q dividend equates to $0.84 annually and yields 7.22% at yesterday's $11.70 share price.
MFC Gains?
Adding the $0.84 annual estimated dividend to my $1.30 optimistic estimate of Manulife's price upside shows a $2.14 potential gross gain, per share, reduced by any costs to trade those shares.
A little under $1,000.00 invested today in Manulife shares at their $11.70 price, buys 85 shares of MFC stock.
A $10 broker fee paid half at purchase and half at sale could cost about $0.12 per share.
Subtract that $0.12 brokerage cost from my estimated $2.14 gross gain per share results in a net gain of $2.02 X 85 shares = $171.70 for a 17.2% net gain on a $994.50 investment.
Therefore, Manulife Financial, whose trading ticker symbol is MFC shows a possible 17.2% net gain including a 7.22% dividend yield. It could be more, it could be less.
The above speculation is based on past performance and supposition. Only time and money invested will tell if Manulife Financial Corporation is worth it.
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