How to Get $500 in Monthly Dividends From Manulife Stock in a World of High Borrowing Costs

Manulife stock is one strong company that might look like it’s getting even stronger and could provide major dividends on the way.

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 April 21, 2025 4:20 pm EDT

Have rising borrowing costs got you feeling down? Many Canadians are looking at dividend stocks for extra income. Manulife Financial (TSX: MFC) is a solid option. It offers a pretty steady stream of dividend payments. If your goal is to pocket $500 each month from dividends, Manulife might be worth a closer look. But what does that consistency cost?

Man data analyze — Image source: Getty Images

Creating that income

As of writing, Manulife stock trades around $40 a share. The company sends out a dividend cheque every three months. Right now, it’s $0.44 per share each quarter. That adds up to $1.76 per share over the year. This means the dividend yield, which is the annual dividend as a percentage of the stock price, is about 4.44%. Not too shabby!

To bring in $500 a month in dividends, you’d need $6,000 for the whole year. So, let’s see how much you’d need to invest to create that income every single year.

COMPANY	RECENT PRICE	NUMBER OF SHARES	DIVIDEND	TOTAL PAYOUT	FREQUENCY	TOTAL INVESTMENT
MFC	$40	3,409	$1.76	$5,999.84	quarterly	$136,360

Yep, that’s a major chunk of change at $136,360. Granted, there will be returns in there as well. But if you want that $6,000 every year, then this is what it would take. So, is it worth it?

Digging deeper

Manulife stock’s financial health looks pretty good, which is reassuring for dividend investors. In the first three months of 2024, the company reported core earnings of $1.8 billion. That’s a nice 16% jump from the same period in 2023. Core earnings per share (EPS) also rose by a solid 20% to $0.94. These numbers show that Manulife stock is doing well financially and is likely able to keep those dividend cheques coming.

One of Manulife stock’s big strategies is focusing on Asia, and it seems to be paying off. In the first quarter of 2024, Asia contributed a whopping 44% of Manulife’s total earnings. The company has a goal to push that up to 50% by 2027. It’s looking at growing markets in places like Indonesia, Vietnam, and the Philippines. This focus on a growing part of the world could mean good things for the company’s future profits and dividends.

Manulife has a history of being good to its shareholders when it comes to dividends. The company has consistently increased its dividend payouts over time. In February 2024, it announced a 9.6% increase in the dividend. This track record suggests that Manulife stock is committed to sharing its success with the people who own its stock. They value their shareholders.

Foolish takeaway

For those who like the idea of their dividends helping them buy more stock, Manulife stock offers dividend-reinvestment plans, or DRIPs. Instead of getting a cash payment, your dividends are used to automatically purchase more Manulife shares. This can help your investment grow even faster over the long term, thanks to the magic of compounding. It’s like a snowball effect for your investments.

So, all in all, Manulife Financial looks like a reasonable option for investors aiming to generate around $500 in monthly dividend income. With a decent dividend yield, strong financial performance, and a history of increasing payouts, Manulife stock is definitely a company to consider, especially when borrowing costs are making other income options less appealing. It could be a good fit for your investment portfolio, though at a high cost.