Manulife Financial Corporation Announces New Dividend Rates
Manulife Financial Corporation, a key player in the financial services industry, recently shared significant updates regarding dividend rates for its preferred shares. This announcement, made on February 18, 2025, outlines the rates applicable to its Non-cumulative Rate Reset Class 1 Shares Series 19 and Non-cumulative Floating Rate Class 1 Shares Series 20.
Details on Series 19 Preferred Shares
For holders of the Series 19 Preferred Shares, which remain outstanding after March 19, 2025, they will receive fixed, non-cumulative preferential cash dividends quarterly, pending declaration by Manulife's Board of Directors. The dividend rate for the five-year period starting from March 20, 2025, until March 19, 2030, has been set at an impressive
5.16900% per annum, translating to a quarterly dividend of
$0.323063 per share. This rate is determined based on the yield of five-year Government of Canada bonds as of February 18, 2025, plus an additional
2.30%.
Insights on Series 20 Preferred Shares
In conjunction with the available Series 20 Preferred Shares resulting from the conversion of Series 19 Preferred Shares, the owners will benefit from floating rate, non-cumulative preferential cash dividends, calculated based on the actual number of days in each quarter divided by 365. The initial rate for the quarter from March 20, 2025, to June 19, 2025, is established at
1.29430% (annualized to
5.13500%), which equals
$0.323575 per share. This rate incorporates the three-month Government of Canada Treasury bill yield as of February 18, 2025, plus
2.30% as specified for the Series 20 Shares.
Conversion Process
Investors who currently hold Series 19 Preferred Shares and wish to convert to Series 20 should notify their brokers by 5:00 PM (Toronto time) on March 4, 2025. For inquiries regarding conversion, shareholders are encouraged to contact Manulife's Registrar and Transfer Agent, TSX Trust Company, at 1-800-783-9495.
Listing on the Toronto Stock Exchange
The Toronto Stock Exchange (TSX) has conditionally approved the listing of Series 20 Preferred Shares once the conversion is enacted. However, this is contingent upon Manulife meeting all TSX listing requirements. Following approval, the Series 20 shares will trade under the symbol
MFC.PR.S on the TSX.
Important Regulatory Note
It’s crucial to note that the Series 19 and Series 20 Preferred Shares are not registered under the U.S. Securities Act of 1933 and thus cannot be offered or sold in the United States unless registered or exempted from such requirements. This press release does not constitute an invitation to buy or sell these securities in the U.S.
About Manulife
Manulife Financial Corporation is a leading global financial services firm based in Toronto, Canada, focused on delivering financial solutions and investment services. Operating under the Manulife brand in Canada, Asia, and Europe, and as John Hancock in the United States, Manulife provides comprehensive financial advice and insurance solutions. At the end of 2023, the company employed over 38,000 individuals and served 35 million customers worldwide. Its stock trades under the symbol
MFC on stock exchanges in Toronto, New York, and the Philippines, and as
945 in Hong Kong.
For more information, visit
manulife.com.