Famous Canadian brand names are not necessarily the most popular among stock investors. If the gauge is trading volume, then do you own shares of Manulife Financial (TSX:MFC), Canadian Natural Resources (TSX:CNQ), or Air Canada (TSX:AC)? The three stocks are among the heavily traded stocks today.
Insurance icon
Manulife is a favourite of dividend investors. The $80.99 billion financial services company satisfied them this month. Besides rising to a new 52-week recently, it pays an attractive dividend. At $46.23 per share, current investors enjoy a 63.46% year-to-date gain in addition to the 3.46% yield (55.5% payout ratio).
In the third quarter (Q3) of 2024, the insurance icon reported a 4% and 82% increase in core earnings and net income attributable to shareholders to $1.83 billion and $1.84 billion, respectively. Roy Gori, MFC’s president and chief executive officer (CEO), said, “We continued to drive momentum and delivered strong results in the third quarter.” He noted the substantial top-line growth across all operating segments.
“Our balance sheet is strong, and we returned more than $2 billion to our shareholders through our common share buyback program since the start of 2024,” added its chief financial officer, Colin Simpson. The Asian market has the strongest business growth momentum (17% year-over-year increase in core earnings).
On November 12, 2024, Manulife launched the 75/100 Segregated Fund Series and Manulife Guaranteed Issue Life. The first is an investment solution for estate planning, while the second is a permanent life insurance product. The insurer commits to helping all Canadians save, prepare, and secure their financial futures.
Energy major
An energy major like Canadian Natural Resources is a no-brainer buy. The $101.11 billion company produces crude oil, natural gas, and natural gas liquids (NGLs). At $47.55 per share (+14.04% year to date), the top-tier energy constituent pays a hefty 4.47% dividend. On October 7, 2024, the board approved a 7% dividend hike.
Its president, Scott Stauth, said the company’s unique and diverse asset base remains a competitive advantage. He said management isn’t dependent on one commodity but picks high-return projects. Also, the operations are safe and reliable. On October 7, 2024, the board approved a 7% dividend hike.
The increase is the 25th consecutive year of dividend increases. Stauth added that the board of directors is confident in the ability of the world-class assets to generate sustainable free cash flow that supports dividend growth.
Bright outlook
Air Canada is back on investors’ radars following the impressive results in its most recent quarter and favourable demand environment. Net income in Q3 2024 increased 62.8% to $2.03 billion versus Q3 2023. Its president and CEO, Michael Rousseau, said, “We are delivering on our commitments and are confident in our future.”
Rousseau assures that the announced share buyback program is an additional step to reduce debt and fund business growth. Air Canada will present the details on December 17, 2024. As of this writing, the surging airline stock is up 31.46% year to date ($24.57 per share).
Sound prospects
Manulife Financial and Canadian Natural Resources are strong buys for passive-income seekers. Air Canada is an ideal prospect for growth investors.
