Valued at a market cap of $79 billion, Manulife (TSX:MFC) is among the many largest monetary providers corporations on this planet. Manulife Monetary supplies diversified monetary providers throughout North America and Asia via three important segments:

• Wealth and Asset Administration presents funding options and retirement planning.
• Insurance coverage and Annuity Merchandise, together with life insurance coverage and long-term care.
• Company operations embody reinsurance, timberland administration, and built-in banking providers via a number of distribution channels.

Within the final 10 years, Manulife inventory has returned 114% to shareholders. After adjusting for dividend reinvestments, cumulative returns are nearer to 236%. Since November 2015, the TSX index has returned “simply” over 200% to shareholders.

Regardless of these market-beating returns, Manulife inventory presents you a tasty dividend yield of 4% right this moment. Let’s see if the blue-chip TSX dividend inventory continues to be a superb purchase.

Is Manulife inventory a superb inventory to personal right this moment?

Manulife Monetary delivered a robust third quarter with report core earnings. Furthermore, it demonstrated clear momentum towards its 2027 monetary targets regardless of dealing with some operational headwinds.

The Canadian insurer posted core earnings per share progress of 16% yr over yr, supported by strong underlying enterprise efficiency throughout Asia, World Wealth and Asset Administration, and Canada. Core return on fairness (RoE) reached 18.1% within the third quarter (Q3), which is consistent with the 18% plus goal by 2027.

The corporate’s highest-potential companies in Asia and World Wealth and Asset Administration accounted for 76% of core earnings yr to this point, exceeding the 2025 goal of 75%. Asia delivered distinctive efficiency with core earnings surging 29% yr over yr to report ranges whereas sustaining a resilient new enterprise worth margin of 39%.

World Wealth and Asset Administration achieved its eighth consecutive quarter of double-digit pre-tax progress, increasing core EBITDA (earnings earlier than curiosity, tax, depreciation, and amortization) margin by 310 foundation factors to 30.9% via disciplined expense administration regardless of dealing with web outflows of $6.2 billion pushed by stress in North American retail channels and anticipated retirement enterprise headwinds.

Insurance coverage new enterprise efficiency remained robust throughout all segments, with whole contractual service margin for brand new enterprise growing 25% yr over yr. It was the fifth consecutive quarter of progress exceeding 20% for the section.

This metric supplies clear visibility into future earnings potential and demonstrates the energy of Manulife’s diversified franchise. The corporate accomplished its complete triennial evaluate of the U.S. long-term care enterprise, with outcomes validating the prudence of reserves via a web beneficial affect, together with a $1.1 billion improve in contractual service margin.

Manulife unveiled a refreshed enterprise technique anchored within the ambition to turn out to be the primary alternative for purchasers whereas sustaining deal with diversified progress.

It not too long ago introduced an thrilling settlement with Mahindra to type a three way partnership coming into the Indian insurance coverage market, topic to regulatory approvals, anticipated to require capital injections of roughly $400 million over the subsequent decade.

Administration maintained confidence in delivering roughly $6 billion in remittances for 2025, monitoring effectively towards the cumulative 2027 goal of at the very least $22 billion. The stability sheet remained strong, with a LICAT (life insurance coverage capital adequacy take a look at) ratio of 138%, offering a $26 billion buffer above supervisory targets, whereas monetary leverage improved to 22.7%.

Manulife is well-positioned to proceed investing in natural progress and returning capital to shareholders.

Is that this TSX dividend inventory nonetheless undervalued?

Analysts monitoring Manulife inventory forecast adjusted earnings to develop from $3.87 per share in 2024 to $5.51 per share in 2029. On this interval, the annual dividend per share is projected to extend from $1.60 to $2.14.

If Manulife inventory is priced at 10 instances ahead earnings, which is cheap, given its progress estimates, it ought to commerce round $55 in late 2028, indicating an upside potential of 18% from present ranges. If we alter for dividends, cumulative returns could possibly be nearer to 30%.