Latest news with #ManulifeFinancial
Yahoo
3 days ago
- Business
- Yahoo
Transform Your TFSA Into a Cash Cow With $7,000
Written by Amy Legate-Wolfe at The Motley Fool Canada Investing $7,000 in your Tax-Free Savings Account (TFSA) and turning it into a cash-generating machine doesn't require chasing trends. A focused and balanced mix of dividend and value stocks can work wonders. With that in mind, here's how I'd allocate your money across three solid TSX names. Those will be Fairfax Financial (TSX:FFH), Manulife Financial (TSX:MFC), and WSP Global (TSX:WSP). These strike a balance between income, growth, and diversification. But let's stay grounded — no overpromising here. First, Fairfax Financial. It's a diversified holding company rooted in insurance and asset management. Fairfax currently trades around $2,462 per share as one of the market's deeper-value names, but you're not here for the dividend pump. Its annual payout yields just 0.875%, making it a slow-burn value play rather than a cash machine. In a TFSA, that value growth is just as valuable, even with less immediate income. But you have to be patient, returns here compound slowly and are tied to the performance of its investments and insurance underwriting results. Next, Manulife. Manulife shares last changed hands at $41.50. It reported core earnings of $7.2 billion in 2024, up 8%, and maintains a conservative payout ratio of nearly 42%. Its annual dividend works out to 4.22% at writing, providing a dependable income stream without veering into yield traps. Its Asia business is growing fast, and wealth management is taking off too. But insurers also carry sensitivity to interest rates and capital markets, so you need to watch economic conditions closely. Finally, WSP Global. It's a global engineering and professional services firm trading near $281.50 per share. This isn't an obvious dividend stock; it yields only around 0.54%, or around $1.50 per share annually. Instead, its strength lies in consistent earnings growth and backlog expansion. In the first quarter of 2025, WSP beat expectations, its backlog grew, and analysts remained bullish. Analysts recently raised their estimates. Acquisitions like Ricardo in the U.K. also support global scale. Earnings growth may not generate big monthly cash, but reinvested returns can compound nicely in your TFSA. Here's how I'd divide the $7,000. Put $2,000 into Manulife to collect yield and income right away. The remaining $5,000 gets split between Fairfax and WSP. With Fairfax, you're buying value; you sacrifice immediate income for long-term gains. With WSP, you get global engineering exposure and rely on capital appreciation rather than dividends. COMPANY RECENT PRICE NUMBER OF SHARES DIVIDEND TOTAL PAYOUT FREQUENCY TOTAL INVESTMENT MFC $41.64 48 $1.76 $84.48 Quarterly $1,999.68 FFH $2,462.39 1 $21.59 $21.59 Quarterly $2,462.39 GSY $281.55 7 $1.50 $10.50 Quarterly $1,970.85 This mix gives you immediate yield from Manulife, value growth from Fairfax, and growth engine exposure via WSP. Over time, as Manulife pays dividends, those earnings can either fund living expenses or be reinvested to grow the capital base further. Meanwhile, money in Fairfax and WSP can compound tax-free in your TFSA. But let's be clear: no single strategy is foolproof. Insurers can suffer in market downturns. Fairfax's earnings depend on investment results and underwriting quality. WSP could see delays in infrastructure projects or setbacks in merger and acquisition integration. All come with execution and macro risks. Still, combining yield, value, and growth creates a well-rounded TFSA portfolio. You earn income now, while giving your TFSA room to appreciate over time. And if markets drop, your diversified selection offers different recovery paths. That makes it more resilient than chasing one shiny stock. At the end of five years, your goal is modest but meaningful: generate income from Manulife, build value in Fairfax, and ride global growth with WSP. All inside a tax-free wrapper, of course. That's how $7,000 can transform into a cash-creating machine. It's not glamorous, but it's disciplined, tax-efficient, and tailored to real-world investor needs. The post Transform Your TFSA Into a Cash Cow With $7,000 appeared first on The Motley Fool Canada. Motley Fool Canada's market-beating team has just released a brand-new FREE report revealing 5 "dirt cheap" stocks that you can buy today for under $50 a share. Our team thinks these 5 stocks are critically undervalued, but more importantly, could potentially make Canadian investors who act quickly a fortune. Don't miss out! Simply click the link below to grab your free copy and discover all 5 of these stocks now. Claim your FREE 5-stock report now! More reading 10 Stocks Every Canadian Should Own in 2025 [PREMIUM PICKS] Market Volatility Toolkit A Commonsense Cash Back Credit Card We Love Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Fairfax Financial. The Motley Fool recommends WSP Global. The Motley Fool has a disclosure policy. 2025
Business Insider
6 days ago
- Business
- Business Insider
Manulife Financial (MFC) Gets a Buy from BMO Capital
In a report released today, Tom Mackinnon from BMO Capital maintained a Buy rating on Manulife Financial, with a price target of $50.00. The company's shares opened today at $30.36. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. According to TipRanks, Mackinnon is a 5-star analyst with an average return of 17.5% and a 74.20% success rate. Mackinnon covers the Financial sector, focusing on stocks such as IGM Financial, AGF Management B NV, and Definity Financial Corp.. In addition to BMO Capital, Manulife Financial also received a Buy from National Bank's Gabriel Dechaine in a report issued today. However, on July 8, Barclays maintained a Hold rating on Manulife Financial (NYSE: MFC). MFC market cap is currently $52.2B and has a P/E ratio of 15.97. Based on the recent corporate insider activity of 149 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of MFC in relation to earlier this year.
Yahoo
09-07-2025
- Business
- Yahoo
3 Canadian Stocks Built to Thrive, Even With Higher Interest Rates
Written by Amy Legate-Wolfe at The Motley Fool Canada With interest rates showing no signs of dropping quickly, Canadian investors are rethinking what kinds of stocks make the most sense right now. Growth stocks may still feel pressure, but some companies are actually built to perform well even if rates stay elevated. Three names to consider are Canadian National Railway (TSX:CNR), Loblaw (TSX:L), and Manulife Financial (TSX:MFC). Each one has pricing power, cash flow strength, and a business model that can weather the high-rate environment. Let's start with Canadian National Railway. It's not glamorous, but it is essential. CN connects Canada's coasts and stretches down into the U.S., moving more than 300 million tons of goods each year. Even with signs of slowing global trade, CN continues to deliver. In its first quarter of 2025, the Canadian stock reported revenue of $4.4 billion, up 4% from the year before. Operating income rose to $1.61 billion, and diluted earnings per share (EPS) climbed to $1.85, an 8% increase. Those are strong results given the economic uncertainty. CN has also maintained a low operating ratio at 63.4%, showing how well it controls costs. That kind of discipline matters when borrowing costs are high and every dollar counts. CN is also planning $3.4 billion in capital investment this year, funded by solid cash flow and not by taking on heavy new debt. Next is Loblaw Companies. It's Canada's largest grocery and pharmacy operator, and in high-rate environments, consumers tend to stay closer to home and spend more carefully. That plays right into Loblaw's strengths. The Canadian stock continues to post reliable growth. In its latest quarter, revenue rose 4.1% to $14.1 billion. Net earnings available to common shareholders grew by 9.6% to $503 million, and diluted EPS came in at $1.66, up nearly 13%. Loblaw also raised its quarterly dividend by 10%, now paying $0.5643 per share. This marked the fourteenth consecutive year of dividend increases. The Canadian stock's mix of food, pharmacy, and discount banners keeps it defensive, and that's exactly what many investors want when rates are high. Its scale gives it leverage in pricing and distribution, and its investment in private-label brands helps protect margins. Then there's Manulife Financial. Unlike other sectors that can be rate-sensitive, insurance firms like Manulife often benefit when rates are higher. The reason is simple: higher rates mean better returns on the large investment portfolios that insurers manage. Manulife's recent earnings back this up. In its most recent quarter, the Canadian stock posted net income of $2.2 billion and core earnings of $1.7 billion, up from $1.5 billion a year earlier. Its return on equity came in at a strong 14.3%. The Canadian stock also increased its dividend, now paying $0.44 per share quarterly. With a yield around 4.2%, it's an appealing income play, and management continues to return capital through share buybacks as well. Manulife is focused on growing in Asia, and it has steadily improved its efficiency ratios. It's well-positioned for a longer period of higher rates. All three of these Canadian stocks share a few key strengths. They are profitable, generate reliable cash flow, and aren't dependent on debt to grow. That makes them less sensitive to higher interest costs. They also operate in sectors that don't suffer as much from borrowing slowdowns. In fact, some of these businesses benefit from the current climate. That gives investors a level of safety without giving up on growth or dividends. The Bank of Canada may not rush to cut rates, and if that's the case, investors need to be selective. Canadian National, Loblaw, and Manulife offer a strong foundation for a higher-for-longer world. Each one is built to thrive, not just survive, no matter what direction the rates go next. The post 3 Canadian Stocks Built to Thrive, Even With Higher Interest Rates appeared first on The Motley Fool Canada. Before you buy stock in Canadian National Railway, consider this: The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Canadian National Railway wasn't one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years. Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the 'eBay of Latin America' at the time of our recommendation, you'd have $24,927.94!* Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 30 percentage points since 2013*. See the Top Stocks * Returns as of 6/23/25 More reading Made in Canada: 5 Homegrown Stocks Ready for the 'Buy Local' Revolution [PREMIUM PICKS] Market Volatility Toolkit Best Canadian Stocks to Buy in 2025 Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Canadian National Railway. The Motley Fool has a disclosure policy. 2025
Yahoo
23-06-2025
- Business
- Yahoo
Manulife Financial (MFC) is a Top Dividend Stock Right Now: Should You Buy?
Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments. While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases. Headquartered in Toronto, Manulife Financial (MFC) is a Finance stock that has seen a price change of -0.13% so far this year. The financial services company is paying out a dividend of $0.32 per share at the moment, with a dividend yield of 4.16% compared to the Insurance - Life Insurance industry's yield of 1.81% and the S&P 500's yield of 1.62%. In terms of dividend growth, the company's current annualized dividend of $1.28 is up 8% from last year. In the past five-year period, Manulife Financial has increased its dividend 5 times on a year-over-year basis for an average annual increase of 8.83%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Manulife's current payout ratio is 43%. This means it paid out 43% of its trailing 12-month EPS as dividend. MFC is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2025 is $2.94 per share, representing a year-over-year earnings growth rate of 4.26%. Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. However, not all companies offer a quarterly payout. For instance, it's a rare occurrence when a tech start-up or big growth business offers their shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, MFC is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of 3 (Hold). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Manulife Financial Corp (MFC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
05-06-2025
- Business
- Yahoo
Manulife Financial (MFC) Could Be a Great Choice
Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus. While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns. Headquartered in Toronto, Manulife Financial (MFC) is a Finance stock that has seen a price change of 4.01% so far this year. The financial services company is currently shelling out a dividend of $0.61 per share, with a dividend yield of 3.99%. This compares to the Insurance - Life Insurance industry's yield of 1.75% and the S&P 500's yield of 1.56%. Looking at dividend growth, the company's current annualized dividend of $1.28 is up 8% from last year. Over the last 5 years, Manulife Financial has increased its dividend 5 times on a year-over-year basis for an average annual increase of 8.83%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Right now, Manulife's payout ratio is 43%, which means it paid out 43% of its trailing 12-month EPS as dividend. MFC is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2025 is $2.94 per share, with earnings expected to increase 4.26% from the year ago period. Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. It's important to keep in mind that not all companies provide a quarterly payout. For instance, it's a rare occurrence when a tech start-up or big growth business offers their shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, MFC is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of 3 (Hold). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Manulife Financial Corp (MFC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
