These insurers offer you income and growth

Article Excerpt

Business for our two top Canadian insurance recommendations remains steady, although COVID-19 has slowed their share-price growth. Still, both firms should rebound quickly once the coronavirus outbreak eases. That will lift the value of their shares. Meanwhile, each insurer offers you a high, sustainable dividend yield. MANULIFE FINANCIAL CORP., $22.43, is a buy. This safety-conscious blue-chip company (Toronto symbol MFC; Shares o/s: 1.9 billion; Market cap: $43.1 billion; TSINetwork Rating: Above Average; Dividend yield: 5.0%; 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 September 30, 2020, 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 September 30, 2020, overall earnings before unusual items fell 4.8%, to $1.45 billion from $1.53 billion a year earlier. With fewer shares outstanding, earnings per share dropped 3.9%, to $0.73 from $0.76. The resurgence of COVID-19 hurt…