Now that the first financial quarter is behind us, most of the market experts have seen and predicted how 2023 is going to turn out for the stock market. But the stock market has a reputation for outperforming expectations.
With a potential incoming recession, rising interest rates, and other economic upheavals and downturns, most investors might feel crestfallen. However, if anything good 2022 has taught us, it would be how important it is to add dividend stocks to one’s portfolio for diversification.
In today’s article, we will talk about such a dividend stock and check out if it is still worth investing in 2023. Let’s dive in!
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Manulife named among top 50 corporate citizens in Canada
Breaking its own record, Manulife Financial (TSX:MFC) has been named among the top 50 corporate citizens in Canada in 2023 for the third time in a row.
The company has continued to stick to its commitment to encourage sustained health and well-being, accelerate a sustainable future, and drive inclusive economic opportunities, as mentioned in its Impact Agenda.
The ranking declared by Corporate Knight of the world’s top five Canadian corporate citizens takes into account the rigorous evaluation of key performance indicators of companies. Factors such as employee management, resource management, finance management, supplier performance, and clean revenue and investment are assessed for this ranking.
The company’s fundamentals remain intriguing
As an insurance and finance player, Manulife remains among the top options investors often consider for exposure to this sector. Much of that has to do with the company’s very cheap valuation (less than five times trailing earnings) and a high dividend yield of approximately 6%.
Indeed, for those who believe Manulife will provide even modest growth over time, these sorts of financial metrics are hard to come by. In a market that’s so overvalued, Manulife is a breath of fresh air — at least for those value investors that still exist out there.
My view is that Manulife will likely continue to see modest growth, driven by its international expansion plans. If this plays out, and the company’s valuation remains this attractive, dividend investors ought to jump at this 6% yield and bid prices higher.
Bottom line
Manulife currently has a dividend yield of 5.8% and a payout ratio of 27%; all of this is in good balance with its earnings. Its revenue is predicted to grow by 20.76% on a yearly basis.
Investors with long-term investment objectives can consider adding this undervalued dividend stock to their portfolios.
