Our top insurers are making smart moves

Article Excerpt

Business for our two top Canadian insurance recommendations remains strong, both in Canada and internationally. These two stocks have recovered all of the ground they lost in March 2020—and we think they are now poised to move even higher. Meanwhile, each insurer offers you solid, sustainable dividend yields. MANULIFE FINANCIAL CORP., $27.19, is a buy. This safety-conscious blue-chip company (Toronto symbol MFC; Shares o/s: 1.9 billion; Market cap: $52.0 billion; TSINetwork Rating: Above Average; Dividend yield: 4.1%; www.manulife.ca) is Canada’s largest life insurer. Manulife sells other forms of insurance, including health, dental and travel plans; its mutual funds and investment management services further diversify its revenue stream. As of March 31, 2021, the company had $1.3 trillion in assets under administration. Increasingly, markets outside of Canada—especially Asia—contribute to its growth­. In the quarter ended March 31, 2021, earnings before unusual items jumped 58.5%, to $1.63 billion, or $0.82 a share, from $1.03 billion, or $0.51, a year earlier. The rise reflects strong new business…