Investment Q&A

Q: Hello: I want to add an insurer stock in Canada and the USA. I admire and follow FAST Graphs. The following companies were recently reviewed: Aflac (AFL), MetLife (MET), Principal Financial Group (PFG), Prudential Financial (PRU), Great-West Life (GWO) iA Financial (IAG), ManuLife Financial (MFC), Power Corporation of Canada (POW), Sun Life Financial (SLF).

I would like your recommendations for the best choice in each country: Objective: solid, safe, long-term hold with capital appreciation potential and good consistent dividend income and dividend growth. Thank you.

Q: I have quite a lot of financials, mostly Canadian banks and insurers with about 20% US. Would like to sell down some and buy something with some more growth in the payment section but still relatively conservative.
Would you recommend one of MA, V, Pypl or other financial as currently looks like a buying opportunity?
Thank you.

Q: If I wanted to park cash, for 6 months or longer, is there any choice between MFC and Telus ? Something else?

Q: I know no stock is as safe as bonds, cash etc. However based on valuation I think Manulife is a good stock right now based on valuation and dividend. Any red flags when you consider this stock? Thanks Bill

Q: You have consistenly placed SLFover MFC..Given that MFC is trading low do you still prefer SLF over MFC for today

Q: Hi, for an rrsp acct. who do like for 4years+ . I think maybe MFC and SLF would be similar, but not sure about BAMR? Would it be the better choice for growth? Dividend is always nice but not necessary.
Thanks

Q: What is your take on Manulife’s recent announcement that it will shed $2B of its US variable annuity business and using the majority of the proceeds for share buybacks? It seems the markets are pleased but is this a good business decision for the long term? I am concerned that by prioritizing share buybacks management is taking a shortcut to earnings growth rather than actually growing revenues and profits. I guess your preference to SLF’s management in the past has me extra cautious.

Q: I have two smaller positions (about 1% each) in Gildan and Manulife, and I am considering consolidating them into a position in Apple (would be roughly 2.3% of total portfolio). I believe I still have room to add to my technology weighting, as I am around 12% currently, and I still have decent exposure to both consumer discretionary (roughly 10%) and financials (roughly 19%). Would such a switch be reasonable, or do you feel a more compelling argument could be made for consolidating around either GIL or MFC?

Q: Hi Foks,

Any insight into MFC's reporting this week? Thanks as always.

Gary

Q: Hello…do you think the Canadian banks and insurance companies will spike once the OSFI lifts the dividend/buyback restrictions? If so, which companies do you think have the most upside?

Thanks for your great service.

Q: Top 10 CAD Dividend Growth picks for RESP? 15 year time horizon.

If you have a link to such a portfolio would be happy to see.

Q: I know 5i favours SLF over MFC. MFC is cheaper, but I was surprised to see on Morningstar that it isn't by a whole lot.

I am a long term investor. I am looking at MFC from a 10, 20 year perspective. l did own it back when they cut the dividend, but am now considering adding it back in.

Is the company much improved from 10 years ago? Cash Flow metrics seem to be good. I was unable to find debt ratio though, and whether or not it was at an acceptable level.

How do you see MFC going forward, despite the present events in China?

Q: I want make some changes to my portfolio with the goal of getting closer to your Balanced Equity portfolio. I am overweight in CNR.ca, 10% loss on MFC.CA and have gain of 120% for PIF.CA. What would be your suggested 5 equities to replace these? The rest of the portfolio does not have any Consumer or Tech and CNR is only industrial.
Do you think it makes sense to sell all of PIF.CA?
Thank you for your advice!

Q: Please rank the following in terms of your preference for a new buy now in a dividend focused portfolio: MFC, SLF, IFC, POW, PRU

Q: Hi 5I,
With China implications affecting Manual Life, would you consider selling my position and purchasing SunLife or would you have another solution?
Thanks, Earl

Q: Peter; Could the China debt problem affect MFC’s investment ? Thanks. Rod

Q: Retired, dividend-income investor who normally holds for the long term. I own a half position in Manulife and am down roughly 7%, including dividends. My long term plan was to sell MFC and rebuy a second Canadian Bank (I already have a full position in Royal Bank).

I have compared the various metrics (P/BV, P/CF, P/S, ROE, technicals, analysts estimates, etc.) for the above mentioned banks as well as against MFC.

Looking at the banks in isolation and already with a full position in RY, I've narrowed it down to either BNS (International exposure and current laggard due to Covid) or TD (more US exposure and 1 year laggard). Of the banks that I do not own, please rank them in order of the best total return over a sufficient period of time for Covid to have subsided (1-2 more years for improved vaccination coverage?). Do you agree with my rationale?

If you include MFC into the bank comparisons, where would you place MFC in the rankings? I have read to buy the banks when their P/E is < 11.0 and buy the insurance companies when their P/BV < 1.0. This would lead me to buy TD (P/E of 9.7) or keep MFC (P/BV of 1.0).

So...keep MFC versus take the loss in MFC and then buy BNS or TD? Your thoughts?

MFC is held in a taxable account and I have no problem taking a loss.

Thanks for your help....Steve

Q: Hi Peter,
With reported earnings and the potential for dividend hikes later this year, what looks better to you now; Cdn Banks or Cdn Insurance Co's ?
Is there any noticable advantage or disadvantage to holding a covered call on a Company etc if/when they raise their dividend ?
Thank you.

Q: I would like to add a few (2-4) financial companies to my non-registered investment portfolio. Would appreciate 5i's help in ranking the above names based on total return potential for a 3-5 year hold. Please add any names you feel belong to the lineup, ranked appropriately, Thank you.

Q: Hello, a great service and learning lots from the Q&A. I have a small Canadian portfolio with MG, OTEX, CNQ, BIP.UN and MFC. And also DIS from US side. I am looking to charge it up with some growth performers over the next 5 years. How do these holdings rate and any suggestions on additions? Would you replace any of these?

Thanks for the feedback. Have a great day.