Manulife Raises its Dividend

Article Excerpt

MANULIFE FINANCIAL $38.32 (Toronto symbol MFC; SI Rating: Above-average) sells life and other forms of insurance, as well as mutual funds and investment management services. It operates in 19 countries and territories worldwide. Manulife reported 7% lower earnings per share in the three months ended June 30, 2008, to $0.66 from $0.57. The decline came mostly from lower gains on stock and bond investments, plus the effects of a stronger Canadian dollar. However, company’s underlying insurance business grew, and insurance claims were lower. For example, the company’s John Hancock Life subsidiary ranked number one in U.S. individual insurance sales for the third consecutive quarter in the three months ended June 30, 2008. It also gained market share despite flat industry sales over the same period. John Hancock’s sales rose 22% in the quarter from a year earlier. Manulife raised its quarterly dividend paid in September by 8.3%, to $0.26 from $0.24. The shares now have a current yield of 2.7%. The company has assets…