Image Source: Unsplash

Manulife Financial Corp (MFC) provides life insurance, annuities, and asset management products to individuals and group customers in Canada, the United States, and Asia.

Its investment management business contributes approximately 20% of its earnings and has around CAD 1.35 trillion in assets under management and administration as of June 30, 2023.

The U.S. business, which primarily operates under the John Hancock brand, contributes about 30% of earnings and is mainly focused on providing insurance products for estate, business, and income protection.

The Asia segment provides insurance products and insurance-based wealth accumulation products in over 11 countries and contributes around 30% of earnings.

The Canadian business segment contributes approximately 20% of earnings.

Manulife Financial Corporation was incorporated in 1887 and is headquartered in Toronto, Canada.

Three key data points gauge Manlike Financial Corp or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

MFC Price

Over the past year, Manulife’s share price gained just over 13% from $16.03 to $18.13 as of Wednesday’s market close.

If MFC stock trades in the range of $15.00 to $22.00 this next year, its recent $18.13 share price might rise to $20.50 by next year. Of course, MFC’s price could drop about the same $2.37 estimated amount or more.

My upside estimate of $2.37, however, is $0.11 under the median of price targets estimated by analysts following MFC for brokers.

MFC Dividend

Manulife Financial Corp has paid variable quarterly dividends since July 7, 2000.  Manulife’s most recent Q dividend, paid September 19th to shareholders of record August 22nd, was $0.27.

That measures up $1.08 annually for a forward-looking yield of 5.95%.

MFC Returns

Add the $1.08 anticipated annual dividend to MFC’s estimated $2.37 possible price upside, revealing a $3.45 estimated gross gain per share for the coming year.

At Wednesday’s $18.13 closing price, a little under $1000 would buy 55 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.18 per share.

Subtracting that likely $0.18 brokerage cost from my estimated $3.45 estimated gross gain per share makes a net gain of $3.27 X 55 shares = $179.85 or about a 18% net gain.

This might be about time to pounce on MFC shares. And beware, Manulife Financial Corp is a Canadian-based international insurer and financial manager paying regular quarterly dividends for twenty-four years. Furthermore, the estimated $59.50. annual dividend from $1000 invested comes in about 3.25 times greater than the recent $18.13 single share price. The question is, what future dividend payments and price changes lie ahead?

Remember the true value of any stock is best realized through personal ownership of shares.

More By This Author:

Current Analysis: Grupo Financiero Banorte
Current Analysis: Community Trust Bancorp
Current Analysis: Associated Banc-Corp (ASB)