This Canadian Dividend Stock Is Down 10% and Worth Holding Forever

After pulling back more than 10% from its 52-week high, Manulife Financial (TSX:MFC) has become a more attractive long-term dividend opportunity on the Toronto Stock Exchange. For investors focused on reliable income, global growth, and valuation discipline, this is exactly the kind of temporary weakness that can create a “buy-and-hold forever” opportunity.

Manulife: A global growth engine led by Asia

Manulife isn’t just a Canadian insurer — it’s a globally diversified financial powerhouse with a strong foothold in high-growth Asian markets. The company ranks among the top five foreign insurers in regions like Hong Kong and Singapore, and that exposure is paying off.

In 2025, Asia contributed 28% of Manulife’s core earnings and delivered outsized growth. Its net income in the region climbed 22% to $2.1 billion, while new business value (NBV) rose 20% to $1.8 billion. This matters because Asia’s rising middle class continues to drive demand for insurance, wealth, and retirement solutions — trends that can persist for decades.

Beyond Asia, Manulife’s Global Wealth and Asset Management division adds another layer of growth. With net income up 17% to $1.9 billion, this segment generates steady, fee-based revenue and benefits from a “sticky” client base. By cross-selling investment products to existing insurance customers, Manulife deepens relationships and strengthens long-term profitability.

Resilient financials and strong capital position

A “forever stock” needs durability — and Manulife delivers. In 2025, the company reported net income of $5.6 billion and core earnings of $7.5 billion, with earnings per share (EPS) rising 6% and core EPS up 8%. In the past decade, it posted adjusted EPS growth at a compound annual growth rate of 9.6%, demonstrating reliable growth across economic cycles.

Manulife’s Canadian operations also remain a stable contributor, with net income rising 8% to $1.3 billion in 2025. Meanwhile, Manulife manages approximately $1.7 trillion in assets under management and administration, giving it scale and diversification across North America, Asia, and Europe.

Equally important is its financial strength. Manulife ended 2025 with a Life Insurance Capital Adequacy Test (LICAT) ratio of 136%, well above the regulatory minimum. This robust capital position provides flexibility to invest in growth, withstand downturns, and — crucially for investors — continue increasing its dividend.

A growing dividend at a reasonable price

Manulife’s dividend profile is where the investment case becomes especially compelling. The company has increased its dividend for more than a decade, with a 10-year growth rate of 10.2%. Last month, it raised its quarterly payout by another 10.2%, bringing the annual dividend to $1.94 per share.

At a recent share price of $46.57, Manulife stock yields about 4.2% — a highly attractive income stream in today’s market. Even better, the stock trades at a modest price-to-earnings (P/E) ratio of roughly 10.9, suggesting that there’s growth potential ahead should earnings continue to grow as expected.

With analysts projecting near-term upside of around 17%, investors are effectively being paid to wait while the business continues to expand.

Investor takeaway

Manulife Financial combines global growth, financial resilience, and a steadily rising dividend — all at a reasonable valuation after its recent pullback.

Its expanding presence in Asia, strong asset management business, and disciplined capital management position it well for long-term success. 

For investors seeking a dependable, income-generating stock to hold for years — or even decades — this dip in Manulife stock looks less like a warning sign and more like a good opportunity to accumulate shares.

The post This Canadian Dividend Stock Is Down 10% and Worth Holding Forever appeared first on The Motley Fool Canada.

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Fool contributor Kay Ng has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.