skip to content
  1. Home
  2. >
  3. Questions
  4. >
  5. MFC: I have owned MFC for a number of years and over this period the shares have done absolutely nothing other than the dividend despite general markets that have been quite positive over this period. [Manulife Financial Corporation]
You can view 2 more answers this month. Sign up for a free trial for unlimited access.

Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: I have owned MFC for a number of years and over this period the shares have done absolutely nothing other than the dividend despite general markets that have been quite positive over this period. If that is how the shares performed in good markets what might happen if or when markets weaken. I suspect shares could tank as they’re does not to be a lot of ‘love’ for the company shares. Would appreciate your analysis. Should shares be sold or continue to be held? Could you pleases provide rationale for your position. Thanks.

Asked by John on April 14, 2022
5i Research Answer:

MFC shares are up 11% this year, well ahead of the overall market. But certainly over five years it has not been great. MFC still has an 'image problem'. It was one of the only Canadian financial large caps to cut its dividend during the financial crisis. It has since recovered all of that, and the dividend is higher than it was prior to the cut, but investors have a long memory. It is viewed as less conservative than some of its peers. With decent growth expected in 2023, and the sector benefiting from higher rates, we are comfortable with it today. Its issues are well-reflected in its 7X earnings valuation.