Manulife (MFC) launches NCIB to cancel 42 million shares (~2.5%), raises dividend 10.2%

Buyback plan anchors capital management at Manulife

Manulife Financial is launching a Normal Course Issuer Bid (NCIB) to repurchase for cancellation up to 42 million common shares, equivalent to about 2.5% of its outstanding share capital as of Jan. 31, 2026. The plan commences after the Toronto Stock Exchange accepts Manulife’s notice of intention and runs for up to one year, with the Office of the Superintendent of Financial Institutions (OSFI) having already approved the programme. The company says the repurchases form part of a broader capital management strategy designed to maintain healthy regulatory capital ratios while balancing the objective of returning capital to shareholders.

The NCIB allows purchases across multiple trading venues, including the TSX, the New York Stock Exchange and alternative trading systems in Canada and the United States, and may be executed at prevailing market prices or other permitted prices. Manulife says all shares bought under the programme will be cancelled and that the total number of shares purchased under the NCIB and any related arrangements will not exceed 42 million. Execution details note that purchases are subject to Canadian and U.S. securities laws and are ordinarily denominated in Canadian dollars unless otherwise stated.

Subject to regulatory approvals, Manulife is also prepared to use a range of other mechanisms to manage timing and economics of repurchases. These include private agreements under issuer bid exemption orders, derivative-based programmes such as writing put options, forward purchase agreements, accelerated share purchase transactions and other equity contracts, and pre-defined plans with registered dealers to allow buys during blackout or otherwise inactive periods. The company frames the flexibility as a means to support capital ratios while enabling disciplined returns of capital across its global footprint.

Dividend increase reflects board confidence

Manulife’s board simultaneously approves a 10.2% increase to the quarterly common dividend, raising it by C$0.045 to C$0.485 per common share, payable on or after March 19, 2026 to holders of record on Feb. 25, 2026. The company says dividend reinvestment plan purchases will be satisfied through open-market acquisitions at the average actual cost with no discounts applied.

Preferred dividends and corporate footprint

The board also declares quarterly dividends on multiple series of non‑cumulative preferred shares, specifying per‑share amounts for each series. Manulife, headquartered in Toronto and trading as MFC (and 945 in Hong Kong), operates across Canada, Asia, Europe and principally as John Hancock in the United States, and reports more than 37,000 employees, over 109,000 agents and some 36 million customers at the end of 2024.