Invest $10,000 in This Dividend Stock for $2,620.16 in Passive Income

This dividend stock is up 21% in the last year, with a 4.96% dividend yield. And even more growth is likely on the way for investors wanting security.

Amy Legate-Wolfe

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote: “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published May 1, 2024 9:45 pm EDT

Looking for some security in your life? One way to get it is by buying a dividend stock that comes with secure passive income. I don’t just mean through dividends, but through returns as well.

That’s why today we’re going to look at secure and stable dividend stock Manulife Financial (TSX:MFC). The company has proven its worth this year, and should continue to do so in the future. So let’s get into what makes it so great.

A red umbrella stands higher than a crowd of black umbrellas. — Source: Getty Images

About Manulife stock

First let’s go over Manulife and what makes it such a great investment. Manulife is a leading Canadian-based financial services group with global operations. The company was founded in 1887 and has grown both organically and through acquisitions to become one of the largest insurance and financial services companies in the world.

Manulife operates through several business segments. It provides life insurance, health insurance, and other related products to individuals and groups. The financial services firm also offers investment management services, retirement solutions, and wealth management products to individuals, institutions, and pension plans. Furthermore, it operates these segments on a global scale.

Manulife is considered one of the largest life insurance companies in the world, with strong financial fundamentals. It manages billions of dollars in assets under management and is a prominent player in the insurance and financial services industry. And this has kept it safe and stable for investors seeking long-term income.

Recent earnings

This strength was evident recently, with Manulife stock continuing to see strong earnings quarter after quarter. During the second quarter, Manulife stock reported net income of $1 billion, with core earnings per share (EPS) at $0.83. The third quarter saw net income remain stable at $1 billion, with core EPS up to $0.92.

By the fourth quarter, net income soared to $1.7 billion with core EPS at $0.92. What’s more, the full year of 2023 saw net income climb to $5.1 billion with core EPS at $3.47.

Overall, we can see that Manulife stock has seen enormous growth and stability in the last year. And that seems as though it will continue.

How much you could get

So now, how much could you receive from investing in Manulife stock right now? In the last year, shares have increased by 21%. So let’s say this happens once again. In that time, you’ll receive a dividend yield at 4.96%, which comes to $1.60 per share annually. So now let’s see how much that could create in passive income within a year’s time.

COMPANY	RECENT PRICE	NUMBER OF SHARES	DIVIDEND	TOTAL PAYOUT	FREQUENCY	PORTFOLIO TOTAL
MFC – now	$32	313	$1.60	$500.80	quarterly	$10,000
MFC – growth	$38.72	313	$1.60	$500.80	quarterly	$12,119.36

With $2,119.36 in returns and $500.80 in dividends, you’ll therefore have passive income totalling $2,620.16 in the next year! And if you continue to hold Manulife stock, it’s clear you’ll be setting yourself up for years of growth and protection. Even during some of the most economically trying times.