Manulife Financial (TSX:MFC) is among the top insurance companies in Canada and a financial behemoth many consider for its mix of long-term growth and dividend yield. Indeed, with a current yield of more than 5%, MFC stock is a top option for investors seeking passive income in retirement or those looking to reinvest dividends for future growth.
There have been some intriguing developments with Manulife of late. So, let’s dive in and see whether this stock is worth buying, selling or holding right now.
Some background
Manulife Financial is amongst the largest financial service groups in Canada, with a market capitalization of more than $50 billion. It has a presence across Asia, Europe, and America with its headquarters situated in Canada. The company offers a wide range of financial services catering to the needs of individuals and institutions. These include Insurance, retirement planning services, capital market services, wealth management services, and other banking solutions.
Manulife is one of the largest public companies in Canada and the largest life insurance company based on its market capitalization. It has reported AUM (assets under management) of $1.3 trillion as of the end of 2022.
Recent noteworthy developments
Recently, the company has announced a recapitalization partnership with Scannell Properties and StepStone Real Estate of $1.2 billion. This deal will facilitate the recapitalization of 35 recently built Class A industrial properties, covering a total of 10.4 million square feet in 17 markets across the U.S.
Manulife Financial is considering this recapitalization as a significant investment opportunity in order to capitalize on and leverage the current industry scenario. Hence, this would be a great time for an existing investor to hold their stakes to generate a higher return on investment.
Manulife is the largest natural capital manager in Canada with more than $15 billion AUM in agriculture and timberland. The company has recently announced that the Manulife Forest Climate Fund has secured a commitment of up to $224.5 million on its target of $500 million.
Bottom line
Considering the market scenario, recent developments inside the company, and the stock price movements, Manulife is certainly a stock worth considering. From a dividend and value perspective, the company stands out as a well-positioned option for capital appreciation over time. I remain bullish on the stock and believe it’s worth buying at current levels.
