Should You Count on Manulife for Reliable Dividends?

Manulife Financial Corporation (NYSE:MFC) is included among the 11 Best Canadian Dividend Stocks to Buy Now.

Unlike sectors that are typically sensitive to interest rate changes, insurance companies such as Manulife often gain an advantage when rates rise. This is because higher interest rates lead to improved returns on the sizable investment portfolios these firms oversee.

In the first quarter of 2025, Manulife Financial Corporation (NYSE:MFC) reported strong top-line performance, with double-digit growth in new business value across all insurance segments, highlighted by a 43% year-over-year increase in Asia. Its Global Wealth and Asset Management division posted a 24% rise in core earnings, improved its core EBITDA margin by 290 basis points, and achieved positive net flows. In addition, the completion of a second long-term care reinsurance transaction underscored the company’s disciplined execution and ongoing commitment to creating sustainable value for shareholders.

Manulife Financial Corporation (NYSE:MFC) currently offers a quarterly dividend of $0.44 per share, having raised it by 10% in February this year. Through this increase, the company stretched its dividend growth streak to 12 years. The stock has a dividend yield of 4.19%, as of July 15.

While we acknowledge the potential of MFC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.