TSX/NYSE/PSE: MFC SEHK:
945
C$ unless otherwise stated
TORONTO, Nov. 5, 2021 /CNW/ - Manulife's Board of
Directors today announced a 5 cents
per share dividend on the common shares of Manulife Financial
Corporation ("Manulife" or the "Company"), payable on and after
December 20, 2021 to shareholders of
record at the close of business on December 1, 2021. Combined
with its quarterly common shareholders' dividend of $0.28 per share announced on November 3, 2021, this supplementary dividend
results in a total quarterly common shareholders dividend of
$0.33 per share or an 18%
increase. Manulife has a strong track record of delivering
progressive dividend increases and is pleased to have combined the
annual increase for 2021 with an accelerated annual dividend
increase for 2022 by executing it one quarter earlier than the
dividend increases we have announced in the past.
In respect of the Company's Canadian Dividend Reinvestment and
Share Purchase Plan and its U.S. Dividend Reinvestment and Share
Purchase Plan, the Company will continue to purchase common shares
on the open market in connection with the reinvestment of dividends
and optional cash purchases under these plans. The purchase price
of these common shares will continue to be based on the average of
the actual cost to purchase them and there are no applicable
discounts.
On March 13, 2020, the Office of
the Superintendent of Financial Institutions ("OSFI") announced its
expectation that all federally regulated financial institutions
halt dividend increases and suspend share repurchases. This
dividend increase follows the announcement by OSFI on November 4, 2021, that this expectation is no
longer in place. Manulife's last dividend increase was
declared on February 12, 2020,
shortly before OSFI's March 13, 2020
announcement.
Following OSFI's November 4, 2021
announcement, Manulife also announced today that, subject to the
approval of OSFI and the Toronto Stock Exchange ("TSX"), it intends
to launch a Normal Course Issuer Bid ("NCIB") permitting the
purchase for cancellation of up to 39 million of its common
shares, representing approximately 2% of Manulife's issued and
outstanding common shares. As at September
30, 2021, Manulife had 1,942,349,528 common shares issued
and outstanding.
Having an NCIB in place will provide Manulife with the
flexibility to purchase common shares as part of its capital
management strategy which is designed to maintain healthy
regulatory capital ratios while balancing the objective of
generating shareholder value.
Purchases under the NCIB may be made through the facilities of
the TSX, the New York Stock Exchange, and alternative trading
systems in Canada and the United States at market prices prevailing
at the time of purchase or such other price as may be permitted.
Manulife will file a notice of intention to make an NCIB with the
TSX. The bid period will commence after the TSX has accepted
the notice of intention and continue for up to one year. All common
shares acquired by Manulife under the NCIB will be cancelled.
Repurchases will be subject to compliance with applicable Canadian
securities laws and United States
federal securities laws.
In addition, Manulife may undertake repurchases of its common
shares outside of Canada and
the United States in compliance
with applicable laws. Subject to regulatory approval, Manulife may
also acquire common shares directly from other holders by way of
private agreement pursuant to issuer bid exemption orders issued by
applicable securities regulatory authorities. Any private purchase
made under an exemption order issued by a securities regulatory
authority will generally be at a discount to the prevailing market
price. Manulife may also enter into derivative-based programs in
support of its repurchase activities, including the writing of put
options and forward purchase agreements, accelerated share
repurchase transactions, other equity contracts or use other
methods of acquiring shares, in each case subject to regulatory
approval and on such terms and at such times as shall be permitted
by applicable securities laws. The total number of common shares
repurchased under the NCIB and all other potential arrangements
will not exceed 39 million common shares.
Subject to regulatory approval, Manulife intends from time to
time to enter into pre-defined plans with a registered investment
dealer to allow for the repurchase of common shares at times when
Manulife ordinarily would not be active in the market due to its
own internal trading blackout periods, insider trading rules or
otherwise. Any such plans will be adopted in accordance with
applicable Canadian securities laws and United States federal securities laws.
Caution regarding forward-looking statements
This document contains forward-looking statements within the
meaning of the "safe harbour" provisions of Canadian provincial
securities laws and the U.S. Private Securities Litigation Reform
Act of 1995 with respect to possible future purchases by Manulife
of its common shares. Although we believe that the expectations
reflected in such forward-looking statements are reasonable, such
statements involve risks and uncertainties, and undue reliance
should not be placed on such statements. Certain material factors
or assumptions are applied in making forward-looking statements,
and actual results may differ materially from those expressed or
implied in such statements. Important factors that could cause
actual common share repurchases to differ materially from
expectations include but are not limited to the fact that the
amount and timing of any future common share repurchases will
depend on the earnings, cash requirements and financial condition
of Manulife, market conditions, capital requirements (including
under LICAT capital standards), common share issuance requirements,
applicable law and regulations (including Canadian and U.S.
securities laws and Canadian insurance company regulations), and
other factors deemed relevant by Manulife, and may be subject to
regulatory approval or conditions.
Additional information about material risk factors that could
cause actual results to differ materially from expectations may be
found in our most recent annual and interim reports and elsewhere
in our filings with Canadian and U.S. securities regulators.
The forward-looking statements in this document are, unless
otherwise indicated, stated as of the date hereof. We do not
undertake to update any forward-looking statements, except as
required by law.
About Manulife
Manulife Financial Corporation is a leading international
financial services provider that helps people make their decisions
easier and lives better. With our global headquarters in
Toronto, Canada, we provide
financial advice and insurance, operating as Manulife across
Canada, Asia, and Europe, and primarily as John Hancock in the
United States. Through Manulife Investment Management, the
global brand for our global wealth and asset management segment, we
serve individuals, institutions and retirement plan members
worldwide. At the end of 2020, we had more than 37,000 employees,
over 118,000 agents, and thousands of distribution partners,
serving over 30 million customers. As of September 30, 2021, we had CAD$1.4 trillion (US$1.1
trillion) in assets under management and administration, and
in the previous 12 months we made CAD$31.6
billion in payments to our customers.
Our principal operations are in Asia and Canada, and the
United States, where we have served customers for more than
155 years. We trade as 'MFC' on the Toronto, New
York, and the Philippine stock exchanges and under '945' in
Hong Kong. Not all offerings are
available in all jurisdictions. For additional information, please
visit manulife.com
View original content to download
multimedia:https://www.prnewswire.com/news-releases/manulife-increases-common-shareholders-dividend-payable-in-december-2021-by-18-announces-intention-to-launch-normal-course-issuer-bid-301417556.html
SOURCE Manulife Financial Corporation