Life Insurance and Health Insurance
Toronto Canada is a place Cindie and I visited during our honeymoon in 1976. We have many memories from that trip. One thing we did was visit the Toronto Zoo. During our time in Toronto, we passed by The Hospital for Sick Children. That still strikes my funny bone, because I always assumed a children’s hospital would admit sick children. Perhaps I am easily amused.
Another memory is the airforce of mosquitos in Algonquin Provincial Park in Ontario Canada. To say we were eaten alive would be an understatement. Apparently mosquitos are the national bird in that area. But enough chatter.
Toronto is also the headquarters of Manulife Financial Corporation. Their ticker symbol is MFC.
Why I Bought MFC Shares for Cindie
I already owned 700 shares of MFC and have been pleased with the growth of that investment. Like most of the companies I select, MFC fits the criteria I like to see for a value business. It has dividend characteristics that are in alignment with my preferences. These include: 1) A decent yield of about 4.5%; 2) a reasonable P/E ratio for a value stock; 3) a sustainable payout ratio of 35.12%; 4) a good dividend growth 5-year track record of 9.74%; and 5) dividend growth for 7 years. While I prefer stocks with dividend growth of 10+ years, if all other factors are favorable, I will buy value stocks with a shorter growth history.
The images in the slide show give you the details. Note that the dividend is paid in Canadian dollars, so you have to translate that into USA dollars if you are reading their annual report. Their 2019 report says they paid $1.00 per share, but that is Canadian money.
Manulife Financial Corporation, together with its subsidiaries, provides financial products and services in Asia, Canada, the United States, and internationally. The company operates through Wealth and Asset Management Businesses; Insurance and Annuity Products; And Corporate and Other segments. The Wealth and Asset Management Businesses segment provides mutual funds and exchange-traded funds, group retirement and savings products, and institutional asset management services through agents and brokers affiliated with the company, securities brokerage firms, and financial advisors pension plan consultants and banks.
The Insurance and Annuity Products segment offers deposit and credit products; individual life, and individual and group long-term care insurance; and guaranteed and partially guaranteed annuity products through insurance agents, brokers, banks, financial planners, and direct marketing.
The Corporate and Other segment is involved in property and casualty insurance and reinsurance businesses; and run-off reinsurance operations, including variable annuities, and accident and health. It also manages timberland and agricultural portfolios; and engages in insurance agency, portfolio and mutual fund management, mutual fund dealer, life and financial reinsurance, and fund management businesses.
Additionally, the company holds and manages oil and gas properties; holds oil and gas royalties, and foreign bonds and equities; and provides investment management, counseling, advisory, and dealer services. Manulife Financial Corporation was incorporated in 1887 and is headquartered in Toronto, Canada.
Cindie and I own a total of 900 shares of MFC as a long-term investment.