Photo by Joshua Mayo on 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.

The company’s investment management business contributes approximately 20% of its earnings and has around CAD 1.4 trillion in assets under management as of Dec. 31, 2021.

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.

Finally, 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 Manulife 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, MFC share price rose about 8% from $17.29 to $18.68 as of Thursday’s market close.

If MFC stock trades in the range of $15.00 to $22.00 this next year, its recent $18.68 share price might rise to $21.00 by next year. Of course, MFC’s price could drop about the same $2.32 amount, or more.

My upside estimate of $2.32 is $0.29 below the median of annual target price estimates from two analysts covering the stock for brokers.
 

MFC Dividend

Manulife Financial Corp’s recent $0.27 variable quarterly dividend, paid June 19th to shareholders of record May 23rd, equates to $1.08 annually and throws a yield of 5.79% as of Thursday’s closing price.
 

MFC Returns

Adding the $1.08 anticipated annual dividend to MFC’s $2.32 price upside reveals a $3.40 potential gross gain per share for the coming year.

At Thursday’s $18.68 closing price, a little over $1000 would buy 54 shares.

A $10 broker fee (if charged), paid half at purchase and half at the sale, might cost us about $0.19 per share.

Subtracting that maybe $0.19 brokerage cost from my estimated $3.40 gross gain per share makes a net gain amounting to $3.21 X 54 shares = $173.34 for a 17.25% net gain.

This may be the time to pounce on MFC. But beware, its dividend is stable and its price is low and is priced at over two and oneself times below the stock’s all-time $46.93 high posted October 31, 2007.

The foregoing article is based on past history of Manulife Financial Corp. The only accurate measure of future performance is from active investment in the company.

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