Manulife Financial (TSX:MFC)(NYSE:MFC) is a Toronto-based insurance and financial services provider. It passed through a difficult 2020 due to the COVID-19 pandemic. However, Manulife and its peers are geared up for solid growth as Canada and its global partners come out of this crisis.
Shares of Manulife have climbed 12% in 2021 as of close on May 28. This dividend stock is up 46% from the prior year. The company released its first quarter 2021 results on May 5.
The company reported core earnings of $1.62 billion – up from $1.02 billion in the prior year. This was up 67% from Q1 2020. It posted APE sales of $1.8 billion which was up 14% year over year. The COVID-19 pandemic accelerated Manulife’s digital transformation over the past year. It announced that auto-underwriting reached 72%, straight-through-processing hit 81%, and eClaims stood at 92%. This will boost profitability going forward.
Manulife and its peers have benefited mightily from the growth of the middle class in Asia. East Asia has enjoyed a strong rebound after its struggles with the pandemic. It should continue to serve as a hot spot for Manulife and the global insurance business.
Shares of Manulife last had a favourable price-to-earnings ratio of 9.4. It last paid out a quarterly dividend of $0.28 per share. That represents a solid 4.4% yield. The company has delivered dividend-growth for seven consecutive years. This makes Manulife a dividend aristocrat on the TSX.
