Photo by Kanchanara on Unsplash
 

Manulife Financial Corporation, ticker MFC, is a large-cap life insurance firm in the financial services business sector. It is, as I said, the second of five financial services candidates vying to be the third selection for my Viking folio. This is not my first report on MFC. I have discussed it previously and selected it as a member of at least one or two of my previous  Dog of the Week portfolios.

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).

As of Dec. 31, 2021, Manulife reported assets under management or administration of about CAD $1.4 trillion.

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

Three key data points gauge Manulife Financial Corporation:

(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

Manulife’s price per share was $16.02 at Monday’s market close. In the past year, MFC’s share price fell by $4.11, or about 20%.

If Manulife’s stock trades in the range of $15.00 to $22.00 this next year, it's recent $16.02 per share price might reach $20.00 by next year. My upside increase estimate of $3.98 is $0.70 under the average price upside forecast by 15 analysts tracking the stock for brokerages.
 

MFC Dividends

Manulife’s most recently declared quarterly dividend of $0.2537per share equals $1.01 annually and casts a yield of 6.33%.
 

MFC Returns

Adding the $1.01 annual Manulife Financial Corporation dividend to my one-year price upside estimate of $3.98 shows a $4.99 potential gross gain per share.

At Monday’s $16.02 closing price, a little under $1000 would buy 62 shares.

A $10 broker fee (if charged), paid half at purchase and a half at the sale, might cost us $0.16 per share.

Subtracting that maybe $0.16 brokerage cost from my estimated $4.99 gross gain per share results in a net gain of $4.83 X 62 shares = $299.49 for a 29.95% net gain including a 6.33% annual yield.

In a year our $1K investment in shares of Manulife Financial Corporation could generate $63.30 in cash dividends. Of course, a single share of MFC stock at Friday's $16.02 share price is nearly 4 times less than the annual dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this is truly a good time to buy MFC shares based on their dividends for the year 2022. The dividend from $1K invested is 3.95 times greater than yesterday’s single share price. Consider yourself alerted. Now IS the time.

All of the estimates above are speculation based on the past history of Manulife Financial Corporation. Only time and money invested in this stock will determine its market value.

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