Manulife Financial (MFC.TO)

In the doldrums following the financial crisis. Recently, taken the lead. The opportunity in this name has, perhaps, been fully realized.

He needs either a macro or company-specific hiccup to happen before putting new $$ to work in the market. At that time, you may want to take profits on this and deploy elsewhere. Watch out for headline contagion risk from private credit issues.

He just bought it. Great execution, fine asset management and is a cash cow. Can increase the dividend again. Yields nearly 5% and trades under 10x PE. They will keep buying back stock. Also, they have little credit exposure, so no credit worries.

Viewed as less dependable as SLF and less exciting at Great West Life. MFC is well-capitalized with a decent PE though lifecos aren't great growers. Is reliable.

Doesn't know why this has come off. Maybe profit-taking after a good run. Is a reasonable, long-term holding. Is seeing growth in Asia. Life insurance is a stable business. Pays a good dividend yield.

It has pulled back to 10X this year's earnings and is quite a lot lower than the banks' ratio. It has shown success in Asia and in wealth management.

All the financials have come off slightly, especially in the insurance space. 

MFC has come down right to its 200-day MA, so you could argue it's got a bit more upside. High-quality name. Beta is double that of GWO, but no greater than the TSX itself. Scale is better than GWO. This one looks more attractive. He wouldn't switch, total return won't be that different. Yield is 4.3%.

GWO has a lower beta, so it hasn't moved as much as MFC. Good quality assets, very steady earnings growth. Yield is 4.3%.

Bit of disappointment last quarter in US operations. Asia still has growth. Valuation in line with history at ~11x forward PE. Can still hold for its decent dividend yield.

He might own this, not sure. Recently, he predicted it would pull back to $45 which it appears to be doing. If you're a long-term holder for the 4.1% dividend, you're not in danger unless this falls below $45. If it bounces at $45, he would add more. But if you sold some shares now, that's a good idea.

Well done, usually good to take advantage of short-term panics. 

This name has turned the corner. Good dividend yield. Higher rates let it get better returns on its bond portfolio. Good job growing its business. Reasonable valuation. Less exposed to worries of credit quality. Good long-term investment.

Lifecos traditionally trade at a discount to the Canadian banks. Why? It has to do with growth. Insurance is a mature market. This type of business doesn't deserve a 15x PE, especially the interest-rate risk you take on with an insurance company. To grow, MFC has a more Asian-centred business. In Asia it needs to partner with a local company, and the profit's a lot different than with a 100%-controlled subsidiary. 

Pays out significant portion of earnings in dividends, so it's more an income stock than a growth stock. Valuation is fair. If you want income, can't go wrong here. 

Funnily enough, life insurance companies actually do well in a lower interest rate environment. Plus, it has financial planning and investment divisions. A good non-bank alternative. Should continue to do well -- partly due to lower interest rates, partly due to stock market continuing to do well.

In his value/momentum strategy.

Doesn't own any of the lifecos. This name struggled for quite a while, but then broke out on strategic repositioning by previous CEO. Changes have driven robust EPS growth. Businesses include Canada, US, wealth and asset management, and Asia (a faster secular grower). 

Now trades at premium to banks. Re-rating has largely played out. But if it can continue to grow earnings at high-single or low-double digits, plus dividend yield of ~3.something%, you have a pretty good line to a double-digit total shareholder return. He'd continue to hold.