1 Dividend Beast I’d Buy Over Enbridge Stock Today

Enbridge is no slouch but I’m gravitating towards Manulife Financial, a dividend beast that offers super value.

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The S&P/TSX Composite Index moved up 54 points on Wednesday, May 17. Some of the top-performing sectors included Health Care, Base Metals, and Energy. Today, I want to look at a top dividend stock that I’m looking to own over Enbridge (TSX:ENB) in late May and beyond. Let’s jump in.

Enbridge is a beast, but I’m looking elsewhere today – Here’s why . . .

Enbridge is the largest energy infrastructure company in North America. Shares of this top dividend stock have dropped 6.5% month-over-month as of close on May 17. That has pushed the stock into negative territory in the year-to-date period.

A Canadian dividend aristocrat is a stock that has achieved at least five consecutive years of dividend increases. Enbridge currently offers a quarterly dividend of $0.887 per share. That represents a tasty 7.1% yield. The company has delivered 27 straight years of dividend growth.

I love Enbridge as a long-term income vehicle, but I’m looking elsewhere for value as we look to the final weeks of the spring season.

Here’s how this dividend beast has performed in 2023

Manulife is a Toronto-based company that provides financial products and services in Canada, the United States, Asia, and other spots around the world. Shares of this dividend stock have dropped marginally month-over-month as of close on May 17. The stock is up 6.8% so far in 2023. Meanwhile, its shares have increased 14% year over year. Investors who want to see more of its recent performance can play with the interactive price chart below.

This company released its first quarter fiscal 2023 earnings on May 10. Manulife delivered net income of $1.4 billion in the first quarter of fiscal 2023 – up $0.1 billion compared to the previous year. Meanwhile, core earnings increased 6% year over year to $1.5 billion. Core earnings per share (EPS) jumped 11% to $0.79.

Canadian investors should be attracted to Manulife and other companies in the insurance space that offer exposure to Asia. Indeed, the growth of the middle class in Asia has created an extremely fertile environment for growth in the financial services and insurance space. The company reported Asian APE sales of $1.2 billion – up from $1.1 billion in the first quarter of fiscal 2022. Moreover, Asia’s new business value rose to $372 million over $369 million in the prior year.

Why I’m picking up Manulife over Enbridge in May

Shares of this dividend stock currently possess a very favourable price-to-earnings ratio of 8.9 as of close on May 17. That puts Manulife in much better value territory compared to its industry peers. Beyond its terrific value, this dividend stock is also geared up for very strong revenue and earnings growth going forward.

Manulife offers a quarterly distribution of $0.365 per share. That represents a strong 5.6% yield. While Manulife may not have Enbridge’s dividend-growth streak, it has achieved nine straight years of dividend increases. That means it is also a Canadian dividend aristocrat.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Ambrose O'Callaghan has no position in any of the stocks mentioned. The Motley Fool recommends Enbridge. The Motley Fool has a disclosure policy.

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