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Summary
- Manulife (TSX:MFC) income swells to C$5.9 billion in 2020, up from C$0.3 billion a year ago.
- Manulife’s total assets are worth more than C$1.3 trillion.
- The stocks’ dividend yield is 4.5 per cent.
Manulife Financial Corporation (TSX:MFC), one of Canada’s three largest insurance companies, has been in the spotlight after its global profits soared in 2020.
It is among the few financial companies that have outperformed its competitors. Its net income rose to C$5.9 billion in 2020, up from C$0.3 billion in 2019.
In the fourth quarter ended December 31, 2020, Manulife’s net profit went up to C$1.8 billion, from C$0.6 billion in the corresponding period of 2019.
This significant success in markets spanning different geographies including Canada, the US, and Asia, has attracted huge interest, evidenced from the trade volumes seen over the past few weeks.
The average 10-day and 30-day stock volumes were 6.4 million and 5.4 million, respectively.
Although the stocks were trading flat at C$24.76 apiece at the time, the chances of propelling up during the intraday trade were high as evident from their performances in the past few days.
Pic Credit: Pixabay.
Should You Invest in Manulife Stock?
Manulife stocks surged by 13 per cent in three months. In the last six months, it rose over 26 per cent.
The financial and insurance sector had been badly hit by the coronavirus pandemic across the globe as cases of bad loans and the number of defaulters increased.
In some countries, central banks had to bring policies to extend the moratoriums on loans and lower the interest rates to help people cope with the economic losses. Despite these efforts, the number of defaulters had remained high as people lost their jobs or other earning sources.
Manulife, however, appeared to have stirred clear from the worst phase relatively unscathed.
The debt-to-equity (D/E) ratio is on a lower side of 0.29.
The C$48 billion company also has announced a quarterly dividend of C$0.28, payable on March 19, 2021. The dividend yield is 4.5 per cent.
Manulife had announced in February that it plans to issue C$2 billion notes at a fixed annual rate of 3.375 per cent, up to June 19, 2026. In the subsequent period, the rates will change every five years as per the prevailing five-year government yield with an additional 2.839 per cent up to June 19, 2081.
According to its financial statements for the year ended Dec 31, 2020, Manulife had more than 37,000 employees, 118,000 agents, and thousands of partners, serving in Asia, Canada, and the US. It also had C$1.3 trillion in assets.
