Manulife increases common shareholders'; dividend by 9.6%

Rhea-AI Summary

Manulife's Board of Directors increases quarterly dividend by 9.6% to $0.40 per share, payable on March 19, 2024. The Company will repurchase common shares for its Dividend Reinvestment and Share Purchase Plans.

Insights

Financial Analyst

The announcement of Manulife's dividend increase by 9.6% is a noteworthy event for shareholders and potential investors. This increment in the dividend payout suggests a strong confidence by the board in the company's cash flow stability and future earnings potential. Historically, dividend hikes are often interpreted as signals of a company's financial health and can lead to positive investor sentiment, potentially impacting the stock's performance in the market. Increased dividends can also attract income-focused investors, which might increase demand for the stock.

However, it's crucial to analyze the payout ratio to ensure that the higher dividends are sustainable and not at the expense of necessary capital reinvestment or debt repayment. Investors should also consider the yield in comparison to industry peers and the overall market to assess the attractiveness of the new dividend rate.

Market Research Analyst

Manulife's decision to purchase common shares on the open market as part of their Dividend Reinvestment and Share Purchase Plans is another aspect to consider. This activity suggests that the company is opting to inject more equity into the market, which could be a strategy to stabilize or incrementally increase the stock price. The absence of a discount on these shares indicates a strategy that does not dilute current shareholder value.

Additionally, this move could indicate that the company perceives its stock to be undervalued or that it is seeking to provide a steady demand for the shares. Market participants should observe the volume and price trends following this announcement to gauge the market's perception of the company's value and the effectiveness of this strategy.

C$ unless otherwise stated                               TSX/NYSE/PSE: MFC     SEHK: 945

TORONTO, Feb. 14, 2024 /PRNewswire/ - Manulife's Board of Directors today announced an increase of 9.6% or 3.5 cents per share to its quarterly common shareholders' dividend resulting in a dividend of $0.40 per share on the common shares of Manulife, payable on and after March 19, 2024, to shareholders of record at the close of business on February 28, 2024.

In respect of the Company's Canadian Dividend Reinvestment and Share Purchase Plan and its U.S. Dividend Reinvestment and Share Purchase Plan, the Company will purchase common shares on the open market in connection with the reinvestment of dividends and optional cash purchases under these plans. The purchase price of these common shares will be based on the average of the actual cost to purchase them and there are no applicable discounts.

About Manulife

Manulife Financial Corporation is a leading international financial services provider, helping people make their decisions easier and lives better. With our global headquarters in Toronto, Canada, we provide financial advice and insurance, operating as Manulife across Canada, Asia, and Europe, and primarily as John Hancock in the United States. Through Manulife Investment Management, the global brand for our Global Wealth and Asset Management segment, we serve individuals, institutions, and retirement plan members worldwide. At the end of 2023, we had more than 38,000 employees, over 98,000 agents, and thousands of distribution partners, serving over 35 million customers. We trade as 'MFC' on the Toronto, New York, and the Philippine stock exchanges, and under '945' in Hong Kong.

Not all offerings are available in all jurisdictions. For additional information, please visit manulife.com.  

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SOURCE Manulife Financial Corporation

FAQ

What is the new quarterly dividend per share announced by Manulife?

Manulife's Board of Directors increased the quarterly dividend by 9.6% to $0.40 per share.

When will the increased dividend be payable to shareholders?

The increased dividend of $0.40 per share will be payable on and after March 19, 2024.

How will Manulife repurchase common shares for its Dividend Reinvestment and Share Purchase Plans?

The Company will purchase common shares on the open market in connection with the reinvestment of dividends and optional cash purchases under these plans.

Is there any discount applicable for the purchase of common shares under the plans?

There are no applicable discounts for the purchase of common shares under the Dividend Reinvestment and Share Purchase Plans.

What is the record date for shareholders to receive the dividend?

Shareholders of record at the close of business on February 28, 2024, will receive the dividend.

What is the percentage increase in the quarterly dividend?

The quarterly dividend was increased by 9.6%.