MFC in Canada is a Favorite – Manulife Financial Corporation

Manulife Financial Raises Dividend 18%

Although the Fidelity Equity Summary Score for MFC is a neutral rating of 5.3, for retirement income MFC is one of the better choices for the long-term investor. Weiss Ratings gives MFC a B- rating, which is a weak buy signal.

Peer Investments

I generally like investments in the financial sector, and I have an above average investment allocation to Canadian banks and related companies like MFC. It is likely that most investors are more familiar with AFL (Aflac Incorporated), PRU (Prudential Financial), and MET (MetLife, Inc.) Seeking Alpha rates nineteen companies in the life and health insurance industry. Although MFC is “only” number eight out of nineteen, I have looked at the other companies and think they are higher risk investments. China Life Insurance (LFC), for example, is rated number five, but I dislike the quality of Chinese companies in general. China is also full of human rights issues.

Dividend Growth

The following slide gives an encouraging picture of the dividend growth of MFC. I think this growth should continue. Life and health insurance is a very lucrative business.

MFC pays in Canadian dollars, so I convert to USD to see real income.

MFC Company Profile

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, annuity, long-term care, and financial reinsurance; and fund management businesses. Additionally, the company holds and manages provides investment management, counseling, advisory, and dealer services. Manulife Financial Corporation was incorporated in 1887 and is headquartered in Toronto, Canada.

Full Disclosure

Cindie and I own 1,500 shares of MFC as a long-term investment.

MFC Company Investor LINK