1 Incredibly Cheap (and Safe!) Canadian Dividend Stock to Buy Now

A truly outstanding dividend stock can take a punch and keep paying. The share price drops for all sorts of reasons, including nerves, headlines, or a rough quarter. The best candidates keep their cash engine intact through that noise. You want a dividend that fits the business, a balance sheet that can handle surprises, and a clear path to long-term growth, even if the market sulks for a while. But even when share prices are up, there can still be an opportunity to be had.

MFC

Manulife Financial (TSX:MFC) fits that “steady through cycles” idea. It sells insurance and wealth products in Canada, the United States, and Asia, and it also runs a large global wealth and asset management platform. That mix matters as rates, markets, and consumer savings habits do not move in a straight line. When one part slows, another can pick up the slack, which helps protect the dividend over time.

The business snapshot stays simple. Manulife collects premiums and fees, pays claims and expenses, and invests and manages assets along the way. It aims to grow earnings per share and book value while returning capital through dividends and buybacks. You do not buy it for excitement. You buy it because it can compound in the background while you focus on life.

Even with shares up 16.5%, the valuation looks reasonable for a large Canadian lifeco, which helps when you plan to hold for years. The dividend stock trades at just 16 times earnings at writing, with a trailing earnings per share of $3.12. It also has an annual dividend of about $1.76 per share, which implies roughly a 3.5% yield at recent prices. That yield may look modest beside flashier income names, but it comes from a business with multiple growth levers, not a single fragile payout source.

Earnings support

The latest earnings show why this dividend stock keeps its reputation. In the third quarter of 2025, Manulife reported core earnings of $2.035 billion and net income attributed to shareholders of $1.8 billion. Core earnings per share (EPS) came in at $1.16, while EPS came in at $1.02. That combination gave investors a reassuring message: the core engine kept growing, even with normal bumps across regions.

The details also highlight the real risks, which you should not ignore. Earlier in 2025, the dividend stock pointed to higher life insurance claims in its U.S. segment as a drag on results, and that kind of volatility can show up again. Insurers live with uncertainty by design. The question is not whether claims jump. The question is whether management can price risk properly and keep the overall machine strong.

Looking ahead, Manulife has a few timely catalysts that could support multi-year growth. Higher rates have helped investment income relative to the ultra-low-rate era, and steadier markets can support fee-based earnings in wealth and asset management. It also announced a deal to buy 75% of Comvest Credit Partners for over US$1 billion, with a goal of expanding its private credit platform. That move could add a new stream of fees, but it also adds integration and credit-cycle risk.

Bottom line

So, why buy Manulife after a small pullback? It offers a mix that suits long-term accounts with diversified earnings, a meaningful dividend, and a strategy that has produced strong core results in the most recent quarter. Ones that support a dividend, right now, one that can bring in major income from even a $7,000 investment.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDANNUAL TOTAL PAYOUTFREQUENCYTOTAL INVESTMENTMFC$51.48135$1.76$237.60Quarterly$6,949.80

Challenge the thesis, though. Claims volatility, market drawdowns, and credit stress can still hit earnings, and the stock can lag during ugly market stretches. If you can accept that and keep your time horizon measured in years, Manulife can serve as a Canadian dividend anchor you can hold for years and sleep well nightly.

The post 1 Incredibly Cheap (and Safe!) Canadian Dividend Stock to Buy Now appeared first on The Motley Fool Canada.

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Fool contributor Amy Legate-Wolfe 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.