Asia ready to fuel Manulife dividends

Article Excerpt

Dear client: In the wake of the 2007-2009 financial crisis, Manulife cut its dividend by 50% to conserve cash. Thanks to the company’s improving outlook, it resumed its pattern of annual dividend increases in 2014. Moreover, the stock remains attractive in relation to its earnings. Manulife’s steady progress is thanks in part to several successful acquisitions that have helped fuel its earnings. As well, a new partnership has let the company profit from Asia’s rapidly growing middle class. MANULIFE FINANCIAL CORP. $24 (Toronto symbol MFC; Conservative-Growth Payer Portfolio; Finance sector; Shares outstanding: 2.0 billion; Market cap: $48.0 billion; Dividend yield: 3.4%; Dividend Sustainability Rating: Above Average; www. manulife.ca) began operating in 1887 and is now Canada’s largest life insurance company. It also sells other forms of insurance, including health, dental and travel plans, as well as mutual funds and investment management services. As of March 31, 2017, Manulife had a record $1.01 trillion in assets under administration. In 2004, the company paid $15 billion…