Understanding Dividend Rates for Manulife's Preferred Shares
Introduction to Manulife Financial Corporation's Dividend Announcement
Manulife Financial Corporation constantly strives to enhance financial services for its clients. As part of this commitment, the company has announced its latest dividend rates for the Non-cumulative Rate Reset Class 1 Shares Series 19 and Non-cumulative Floating Rate Class 1 Shares Series 20. Understanding these rates can help investors make informed decisions about their investments.
Details of the Series 19 Preferred Shares
Dividend Payments and Rates
For the Series 19 Preferred Shares, which continue to remain after the specified date, shareholders will benefit from a fixed rate non-cumulative preferential cash dividend. This will be paid quarterly as declared by Manulife's Board of Directors. Starting from a specified future date, the dividend rate for the five-year term will be set at an impressive 5.16900% per annum. This translates to a payment of approximately C$0.323063 per share for each quarter.
Yield Calculation
The dividend is determined based on the yield of the five-year Government of Canada bond, which is adjusted with an additional 2.30% margin. This calculation ensures that it provides a competitive return that reflects current market conditions.
About the Series 20 Preferred Shares
Conversion Rights and Floating Rate Dividends
Investors looking to convert their Series 19 shares into Series 20 shares will find favorable terms. Upon conversion, the holders of Series 20 Preferred Shares will receive floating rate non-cumulative preferential cash dividends, calculated on the actual number of days in each quarterly period relative to a year. Initially, the dividend rate for the new Series 20 shares during the first three-month period will be approximately 1.29430%, amounting to about C$0.323575 per share. This yield is based on the current three-month Government of Canada Treasury bill yield plus the same 2.30% additional margin.
Conversion Instructions and Assistance
Holders of the Series 19 shares who wish to exercise their right of conversion are encouraged to engage their brokers or designated nominees to facilitate this process. The deadline for conversions is set for a specified time, ensuring that investors have a clear timeline to act. For any inquiries regarding conversions, Manulife's Registrar and Transfer Agent is available for assistance.
Listing Information for Series 20 Shares
Stock Exchange Approvals
Manulife is actively working to meet the listing requirements for the Series 20 Preferred Shares on the Toronto Stock Exchange (TSX). This process is crucial for ensuring that the shares can be actively traded, further enhancing liquidity for investors. Once approved, the Series 20 shares will be traded under the ticker symbol 'MFC.PR.S'.
Investments Not Registered in the U.S.
It's important to note that neither the Series 19 nor the Series 20 Preferred Shares have been registered under the United States Securities Act or any applicable state laws. This means that the shares can’t be sold or delivered directly within the United States, unless under specific exemptions. Investors should be aware of these regulations when considering their investment options.
About Manulife Financial Corporation
Manulife Financial Corporation stands as a leading international provider of financial services. With its headquarters situated in Canada, the company provides a broad range of financial advice and insurance solutions. Operating under the Manulife brand in Canada, Asia, and Europe, and as John Hancock in the United States, it emphasizes customer service and satisfaction. With a strong workforce exceeding 38,000 employees and a network of over 98,000 agents, Manulife notably serves more than 35 million customers worldwide. Investors can find Manulife's stock traded as 'MFC' across major exchanges including those in Canada and the United States, with operations also in Hong Kong.
Frequently Asked Questions
What are the new dividend rates for Manulife's shares?
The new dividend rate for the Series 19 Preferred Shares is 5.16900% per annum, while the initial rate for the Series 20 Preferred Shares is set at 1.29430% for the first three-month period.
How frequently will the dividends be paid?
The dividends for both Series 19 and Series 20 Preferred Shares are paid on a quarterly basis, as declared by the company’s Board of Directors.
What steps should I take if I want to convert my Series 19 shares?
To convert your Series 19 shares, you should contact your broker or nominee before the conversion deadline.
Are these shares available for purchase in the U.S.?
No, the Series 19 and Series 20 Preferred Shares have not been registered in the U.S. and cannot be sold or offered directly there.
What is the significance of the additional 2.30% margin?
The 2.30% margin is added to the Government of Canada bond yield or Treasury bill yield to ensure that the returns on the preferred shares provide a competitive edge in the market.
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