
TSE:MFC
This summary was created by AI, based on 28 opinions in the last 12 months.
Manulife Financial (MFC) has received mixed reviews from experts, highlighting its strengths in capital management, particularly in Asia and wealth management. Several analysts view it as a reliable income stock, benefiting from a decent dividend yield, yet caution against its growth potential compared to Canadian banks. The company has faced short-term challenges, including mixed results from its alternative portfolio and limited growth in its U.S. operations, which has sparked some concerns. Analysts suggest waiting for opportunities to buy during pullbacks, given its valuation relative to major financials, alongside the potential for increased profitability stemming from rising interest rates. Overall, while MFC is generally recognized for its stability and improvements in earnings quality, it struggles to capture investor attention amidst recent market shifts.
Outlook in 12 months? He has added to his holdings recently. 2 things are big negatives for this company. Falling stock market and falling bond yields. Their hedging programs are protecting them much more than he used to. Operations are starting to do better. Core operating earnings are probably running around $1.20-$1.30 a share, which gives you less than a 10X multiple. Can see leverage upside from improvements in the market generally. Risk/reward is great. 4.6% dividend yield.
If the economy recovers in the next 2 years, amongst the best performing sectors are going to be lifecos because this is a whole industry that has been viciously beaten down by low interest rates. If you have a long enough time rising, you can absolutely have a positive return on lifecos but this company would not be his favourite.
SLF is preferable because of a safety of dividend. Risk reward is quite appealing.