This Top Dividend Stock is Still Undervalued

Analysts have sounded a recent warning for the insurance industry as it comes out of the COVID-19 pandemic. Predictably, top insurers are expected to incur deeper-than-expected losses in the face of this crisis. Regardless, I’m still targeting the top dividend stock we will look at today.

Manulife Financial (TSX:MFC)(NYSE:MFC) is one of the top insurance providers and financial services companies in Canada. Shares of Manulife have dropped 26% in 2020 as of late afternoon trading on August 6. The company released its second quarter 2020 results on August 5. It showed a marked improvement from a dim first quarter.

The company’s Asian business has continued to be a source of strength during this global crisis. Its Asia-based business returned to growth in Q2 2020.

Manulife managed to beat analyst expectations across the board. Profit rose 3.8% over the previous quarter to $489 million. Meanwhile, the global stock market rebound powered an increase in its assets under management. However, its global wealth management division still saw earnings fall 1.7% from the previous year.

Shares of Manulife last possessed a price-to-earnings ratio of 8.3 and a price-to-book value of 0.7. This puts the stock in very attractive value territory. Moreover, Manulife has a phenomenal track record as a dividend payer. It currently offers a quarterly dividend of $0.28 per share. This represents a tasty 5.9% yield.

Manulife is back on track, its stock is undervalued, and it is a star as a dividend payer. Investors should still look to scoop up Manulife today.