When markets get choppy, and talk of recession is in the air, many investors look for a safe harbour. Not every stock can weather a storm, but some are built to keep delivering income and stability even when the economy slows down. One name that keeps rising to the top of my list is Manulife Financial (TSX:MFC). It’s not flashy, but when you’re looking for consistency and dividends you can count on, it delivers.
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About Manulife
Manulife is one of Canada’s largest insurance and financial services companies. It operates around the world, with major segments in Asia, Canada, and the United States. That global diversification gives it an edge. When one market is soft, another may be growing. While it may be best known as an insurance giant, Manulife has built a strong wealth and asset management business, too. That means it earns money from more than just premiums. It also manages client assets and investments across different geographies.
The stock trades around $43 per share as of writing. Manulife pays a quarterly dividend of $0.44, which works out to $1.76 annually. That gives the stock a dividend yield of about 4.1%. In today’s interest rate environment, that’s a pretty attractive payout. And unlike some high-yielding stocks that are stretched thin, Manulife’s dividend is well-supported by earnings. In fact, in early 2024, the company raised its dividend by nearly 10%. That’s the kind of signal income investors love to see as it says management is confident in the company’s financial strength.
More to come
And there’s more good news. In its most recent earnings report, covering the first quarter of 2025, Manulife posted strong results. Core earnings came in at $1.8 billion, or $0.99 per share. That’s a 3% increase year over year. Net income attributable to shareholders was even stronger, reaching $2.3 billion, or $1.27 per share. These numbers beat expectations and showed that even as the economy faces headwinds, Manulife continues to grow. It also announced that it would buy back up to 2% of its outstanding shares, a move that often signals management believes the stock is undervalued.
The Asia segment, in particular, stood out. Annual Premium Equivalent (APE) sales in Asia jumped 50% year over year. That’s a big deal, especially since Asia is a major part of Manulife’s long-term growth strategy. The region has a growing middle class, a rising demand for life insurance and savings products, and relatively low market penetration compared to North America. Manulife’s strong footprint in countries like Hong Kong, Japan, and mainland China gives it access to markets with a lot of runway left.
At home in Canada, Manulife also delivered solid numbers. Its insurance sales were up 27% compared to the same period in 2024. Wealth and asset management in Canada added $1.3 billion in net inflows, showing that clients continue to trust Manulife with their money. In the U.S., while insurance sales dipped slightly, wealth inflows were strong, and margins improved thanks to disciplined cost controls.
Bottom line
If you’re building a recession-ready portfolio, this is the kind of stock you want to own. It pays a reliable dividend, has earnings stability thanks to a mix of insurance and wealth management, and operates globally, giving it access to faster-growing markets. Furthermore, it has a proven track record of managing through tough times.
So, while it’s easy to chase the latest tech trend or speculate on volatile stocks, sometimes the best move is to go with what works. Manulife doesn’t try to impress with flashy headlines. Instead, it focuses on delivering value year after year. And for investors like me, looking for income and peace of mind when things get rough, that’s exactly what makes it my top recession-proof pick.
