5.4%-Yielding, High-Margin Growth Engine On Sale Below Book Value

MFC has experienced attractive top-line and bottom-line growth in the Asia and WAM businesses due to successful geographic and product expansion.
Investments in the current businesses poise MFC to continue to benefit from both revenue growth and cost efficiencies, contributing to superior earnings.
Market volatility has resulted in an attractive valuation, with the stock price below book value and a dividend yield of 5.4%.
The dividend has experienced double-digit growth for several years and is expected to continue as the company shores up its balance sheet and continues to generate strong cash flows.
Manulife Financial Corporation (NYSE: MFC) is a Canadian-based financial services firm with global operations. The company has deep roots in the insurance industry, but has been experiencing impressive growth in the Asian operations and the wealth management segment. The company is currently trading below its book value and pays a safe dividend that yields 5.4%, which provides the opportunity for attractive, long-term investment returns.
Segment growth and execution
MFC has delivered strong growth in recent years as it continues to gain market share in the insurance and the wealth and asset management (WAM) businesses. Digging into the segment reporting details, we highlight the growth experienced in the businesses, and management's ability to execute on strategic initiatives.

Source: MFC financial statements and MD&A
Highlights from the management discussion and analysis include:
Asia: The largest segment, contributing 35% of the total net income, has benefited from favorable demographics and economics in the region. The company operates in 11 countries in Asia, many of which are among the fastest growing in the world in terms of economic development and the emergence of a middle-class. While the segment's net income has grown only 2.7% (2-year CAGR) over the last two years, the net revenue has grown by 17.7%. The disparity is due to... Read more