Got $5,000 to Invest? 3 Insurance Stocks to Buy and Hold Forever

These three insurance stocks are the perfect options for those wanting security, stability, and dividends.

Amy Legate-Wolfe

Author Bio 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. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy 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. Social Media 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 March 13, 2025 9:30 pm EDT

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Investing $5,000 in the Canadian insurance sector can be a wise move for those looking to build long-term wealth. And three insurance stocks certainly look like strong options right now. So, let’s take a closer look at Manulife Financial (TSX:MFC), Power Corporation of Canada (TSX:POW), and Great-West Lifeco (TSX:GWO). Then, see why these might be excellent buy-and-hold stocks.

dividends grow over time — Source: Getty Images

Manulife

Manulife Financial, one of Canada’s largest insurers, has been making headlines recently. In November 2024, the company announced that Phil Witherington, an insider with over 25 years of experience in insurance and financial services, will succeed Roy Gori as chief executive officer in May 2025. This leadership transition comes at a time when Manulife is showing robust financial health.

As of Dec. 31, 2024, Manulife reported assets under management and administration of $1.4 trillion, reflecting a 10% increase from the previous year. The insurance stock’s global presence, particularly in Asia, continues to be a significant growth driver.

Power

Power Corporation of Canada, a diversified international management and holding company, has substantial interests in financial services, renewable energy, and other sectors. In its third-quarter report for 2024, Power Corporation reported consolidated earnings of $634 million. That’s up from $567 million in the same period the previous year.

This increase was primarily driven by strong performances from its financial services subsidiaries. The insurance stock’s strategic focus on sustainable investments and renewable energy projects also positions it well for future growth.

Great-West

Great-West, a member of the Power Corporation group, has been delivering impressive results. In the fourth quarter of 2024, the insurance stock reported base earnings of $1.1 billion—a 15% increase from the same period in 2023.

For the full year, base earnings reached $4.2 billion, up 14% from the previous year. These record earnings were driven by strong performances across all business segments, particularly in the United States and Europe. As of Dec. 31, 2024, Great-West Lifeco’s assets under administration exceeded $3.2 trillion, underscoring its significant market presence.

Value and income

When considering past performance, all three companies have shown resilience and growth. Manulife’s stock has appreciated by 20% over the past year, reflecting investor confidence in its global strategy. Power Corporation’s diversified portfolio has provided steady returns, with its stock up 15% in the same period. Great-West Lifeco’s focus on core insurance and asset management businesses has resulted in a 25% stock price increase over the past year.

In terms of dividends, all three companies offer attractive yields. Manulife currently provides a dividend yield of 4.2% at writing, reflecting its commitment to returning value to shareholders. Power Corporation’s dividend yield stands at 4.5%, supported by its robust earnings from diversified investments. Great-West Lifeco offers a dividend yield of 4.3%, underpinned by its consistent financial performance.

Bottom line

For investors with $5,000 to invest, allocating funds across these three companies can provide a balanced exposure to the Canadian insurance sector. This approach offers diversification benefits, combining Manulife’s international growth prospects, Power Corporation’s diversified investment strategy, and Great-West Lifeco’s strong operational performance.

All together, Manulife Financial, Power Corporation of Canada, and Great-West Lifeco present compelling opportunities for long-term investors. The strong financial performances, strategic growth initiatives, and attractive dividend yields make them worthy considerations for those looking to invest in the Canadian insurance sector.