1 TSX Dividend Stock Down 5.5% to Buy Now

High-quality companies are well-positioned to weather volatility, including the geopolitical conflict in March 2026. Extensive experience navigating major global conflicts in previous years is also an acid test of reliability. Manulife Financial (TSX:MFC) receives a high mark in this aspect, having maintained its solvency through every major war and economic crisis of the last 140 years.

MFC trades at $46.66 per share, down 5.5% year to date. For income investors, the dip is an opportunity to buy a blue-chip stock at a discount. If you invest today, the dividend yield is 4.23%. The insurance icon boasts eight consecutive years of dividend increases, made possible by a resilient business model that has endured from the 19th century to the modern day.

Middle East war

Manulife has a long-standing presence in Canada and the U.S. (through the John Hancock brand) and currently serves 12 markets in Asia. The Asia business is the growth engine and is projected to contribute up to 50% of core earnings by 2027. In May 2025, it opened a strategic office in the Dubai International Financial Centre (DIFC) in the UAE to serve high-net-worth and ultra-high-net-worth (UHNW) clients.

The $77 billion financial services company is largely insulated from direct damage in the Iran war as its primary customer base is outside the immediate conflict zone. However, if the current conflict extends much longer, market and economic impacts could become more significant. The recent price drop is due to the risk-off market sentiment, not a business flaw. Historically, MFC has rebounded sharply after a geopolitical crisis.

More importantly, the 136% Life Insurance Capital Adequacy Test (LICAT) ratio indicates sufficient capital and economic buffer to navigate market fluctuations due to war anxiety. The Office of the Superintendent of Financial Institutions (OSFI) in Canada requires a total LICAT ratio of at least 100%. MFC’s high LICAT ratio also assures dividend protection.

Defining year

Manulife’s diversified business model delivered strong financial results in 2025. The full-year core earnings of $7.5 billion were a new record, driven by the shift to higher-growth, less capital-intensive businesses. In the 12 months ending December 31, 2025, net income (in constant currency) increased 3.5% year over year to $5.6 billion. Its President and CEO, Phil Witherington, said 2025 was a defining year for Manulife.

In Q4 and full year 2025, core earnings of the Asia segment climbed 24% and 18%, respectively, to US$564 million and US$2.1 billion. For the Wealth & Asset Management (WAM) segment, 2025 core earnings rose 14% to a record $1.9 billion compared with 2024.

According to Colin Simpson, Chief Financial Officer of Manulife, the $6.4 billion remittances last year enabled capital deployment flexibility. In addition to 10% dividend hike recently, he added that MFC plans to repurchase up to 2.5% of outstanding common shares.

Other business highlights include the 50:50 life insurance joint venture with Mahindra & Mahindra Ltd. to enter the insurance market in India. Manulife acquired a 75% stake in U.S.-based Comvest Credit Partners to boost its Global WAM. It also entered an agreement to acquire PT Schroder Investment Management Indonesia.

Buy-and-hold candidate

Manulife has built a business model designed to thrive in the decades to come. The geopolitical headlines will unsettle markets and trigger temporary pullbacks. Still, MFC remains a buy-and-hold candidate for people seeking to stay invested for the long haul.

The post 1 TSX Dividend Stock Down 5.5% to Buy Now appeared first on The Motley Fool Canada.

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Fool contributor Christopher Liew 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.