Shares of Manulife Financial (TSX:MFC) seem to be regaining strength lately, as they’ve climbed nearly 26% over the last eight months to trade at $48.85 apiece, giving the company a market cap of $82.1 billion. That’s a solid comeback for a large-cap stock in the insurance space, especially at a time when macroeconomic uncertainties are keeping investors cautious around the financial sector.
In addition to its strong price movement, Manulife is quietly turning the gears behind the scenes with stable earnings, a stronger capital position, and smart expansion moves across Asia and North America. Meanwhile, it continues to reward patient shareholders with consistent dividend hikes. But what does all this mean if you’re trying to decide what to do with Manulife stock in 2026?
In this article, I’ll talk about what’s really driving Manulife’s strength and whether now is a good time to buy, hold, or move on.
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Manulife stock
Manulife isn’t just sitting on its historical reputation as one of the most dependable dividend stocks on the TSX, but it’s also evolving. Today, it operates as a diversified financial services firm with a growing presence across Asia, North America, and Europe. The Toronto-headquartered firm runs insurance, wealth management, and retirement businesses under the Manulife brand in most regions and as John Hancock in the United States.
At the current market price of $40.85 per share, MFC stock offers a 3.6% annualized dividend yield, paid quarterly.
Strong performance powered by stable earnings and capital discipline
In the third quarter of 2025, Manulife’s core earnings jumped by 11% YoY (year over year) to $2.04 billion, translating into core earnings of $1.16 per share, up 16% YoY. That improvement came from higher new business growth across Asia and the U.S., better insurance margins, and disciplined expense control.
The company’s core return on equity also touched 18.1% last quarter, already above its 2027 target. At the same time, Manulife brought its financial leverage down to 22.7%, which is well below its own 25% ceiling. These trends point to a company that’s not just growing but doing so in a responsible way.
One concern investors had earlier this year was around its global wealth and asset management segment, where Manulife’s net outflows were growing. That continued in the third quarter, with $6.2 billion in net outflows, mostly from retail channels. However, the Canadian insurance giant has continued to report solid earnings from insurance, which is still its core strength.
Long-term growth strategy is quietly coming together
Interestingly, Manulife’s new business contract service margin rose 25% YoY in the latest quarter, with the U.S. business showing a stunning 104% jump in new business gains. Recently, the company also entered India’s insurance market through a partnership with Mahindra Finance, opening doors to one of the fastest-growing life insurance markets globally.
Apart from insurance, it’s also focusing on strengthening its private credit platform through quality acquisitions, helping it gain exposure to fast-growing markets and new sources of earnings.
Is MFC stock a buy, sell, or hold in 2026?
Considering all of these factors, it’s clear that Manulife stock is in a stronger position than it was a year ago. Its earnings quality has improved, capital remains strong, and the long-term strategy is unfolding in a measured and promising way. The only near-term pressure is on asset management outflows, but even that hasn’t derailed its core performance.
So, if you already own Manulife stock, this could be a good time to hold the stock and continue collecting dividends while tracking further earnings updates. If you’re thinking about getting in, a buy-the-dip approach could make sense — especially if MFC stock slides back toward the $43-$45 range, given the company’s solid outlook heading into 2026.
