In addition to the strong price movements, Manulife is quietly turning things around behind the scenes with stable profits, a stronger capital position and smart expansion moves in Asia and North America. Meanwhile, it continues to reward patient shareholders with consistent dividend increases. But what does all this mean when you’re trying to decide what to do with Manulife stock in 2026?
In this article, I’ll talk about what really drives Manulife’s strength and whether it’s a good time to buy, hold, or move on.
Manulife stock
Manulife not only rests on its historical reputation as one of the most reliable dividend stocks on the TSX, but it is also evolving. Today it operates as a diversified financial services company with a growing presence in Asia, North America and Europe. The Toronto-headquartered company runs insurance, asset management and retirement businesses under the Manulife brand in most regions and under the John Hancock name in the United States.
At the current market price of $40.85 per share, MFC shares offer an annualized dividend yield of 3.6%, paid quarterly.
Strong performance thanks to stable profits and capital discipline
In the third quarter of 2025, Manulife’s core earnings rose 11% year-over-year (year-over-year) to $2.04 billion, translating into core earnings of $1.16 per share, up 16% year-over-year. This improvement was due to higher new business growth in Asia and the US, better underwriting margins and disciplined cost control.
The company’s core return on equity was also 18.1% last quarter, already above the 2027 target. At the same time, Manulife has reduced its financial leverage to 22.7%, which is well below its own ceiling of 25%. These trends indicate that a company is not only growing, but also doing so in a responsible manner.
One of the concerns investors had earlier this year was in the global wealth and asset management segment, where Manulife’s net outflows increased. That continued in the third quarter, with net outflows of $6.2 billion, mainly through retail. However, the Canadian insurance giant continues to report solid revenues from the insurance industry, which remains its core strength.
The long-term growth strategy is quietly approaching
Interestingly, Manulife’s service margin on new business increased 25% year-on-year in the last quarter, with the US company posting a stunning 104% increase in new business profits. Recently, the company also entered the Indian insurance market through a partnership with Mahindra Finance, which opens doors to one of the fastest growing life insurance markets in the world.
In addition to insurance, the company is also focused on strengthening its private lending platform through high-quality acquisitions, allowing the company to gain exposure to high-growth markets and new revenue streams.
Should MFC Stocks Be Buy, Sell, or Hold in 2026?
Taking all these factors into account, it’s clear that Manulife shares are in a stronger position than they were a year ago. Earnings quality has improved, capital remains strong and the long-term strategy is unfolding in a measured and promising manner. The only short-term pressure is asset management outflows, but even that hasn’t derailed core performance.
So if you already own Manulife shares, now could be a good time to hold the stock and continue collecting dividends while monitoring further earnings updates. If you’re considering getting in, a buy-the-dip approach could make sense, especially if MFC shares fall back to the $43-$45 range given the company’s solid 2026 outlook.
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