Manulife Financial (MFC.TO)

He's been taking some money out on earnings trepidation in Asian operations. Had a really good run. He's been adding to bank stocks, and TD is at the top of the list with its US acquisition still being finalized. MFC was trading at 8x PE with a 5% yield, whereas TD is more expensive. TD has more growth potential. 

Recent results were a little better than expected. They have fits and starts, but never breaks through $30--that's their problem. Until then, sell at the top of the range and buy at the bottom. Trades at a cheap PE, cheaper than the other lifecos and banks. Pays a high dividend. They have a big presence across Asia, which is a secular growth driver, but China's reopen won't have that much impact. Holding them back is exposure in liabilities in the U.S. , though they have been selling off some of them. Would rather sell than buy it right now.

Still likes this value play. Outperforming the TSX since last May. Higher rates is a tailwind for insurers. Is reducing exposure to riskier long-term care insurance and variable annuities while and increasing exposure to Asia (55% of their revenues). China is exiting Covid and its middle class is growing. Pays a 5% dividend and trading at a cheap 1x price to book.

Good stock that is a strong long term hold.
~5% dividend that expects to grow.
Still suffering from 2008 dilution. 
Strong balance sheet.
Good international exposure. 

A former top pick and he still owns it. Can understand frustration of shareholders. Shares have been edging up a but. The lifecos will return in a week or two. As China gets out of lockdown, those sales will pick up. Meanwhile, MFC is trading at a good valuation and the dividend is a good 5%. Get used to a big accounting change in lifecos that will change numbers, but that doesn't mean the underlying business has changed.

Still likes it and new management. Took a long while to restructure US annuity business and reduce risk. Asian business seeing some positivity in sentiment, wait to see if this translates into results. Giant overhang for years. Underlying horsepower still good, dividend strong relative to sector. Opportunity for management to take good assets and transition them to a better day. Well run. Right now, bit worried about the banks' credit risks in a recession, so he likes that insurers diversify away from that. He's 15% banks, 5% insurance. 

Both high quality, good balance sheets, strong management. Both attractive value right now. MFC is 8x earnings, SLF is 11x. Asian business is a differentiator, which both have. MFC is much more international, with 80% of revenues from outside Canada, and 50% from Asia. Covid has slowed Asia, but when it bounces back, MFC should benefit a bit more. MFC yield slightly higher. Long term, you'll do well in both. 

Consider this a trade at best, with an income kicker. MFC stock pays a steady 5.05% dividend, exceeding even Canadian banks like TD. Also working in its favour is the fact that the insurance stock trades at a low 6.95x PE and enjoys robust daily volumes of 7.3 million shares. Its Asian operations will enjoy a boost now that China is reopening, an area to watch. Read 4 Insurance Stocks to Stay Safe in a Risky Market for our full analysis.