Q: Which one would you prefer? Are they tied? Thanx.
5i Research Answer:
Insurance companies in general are doing well recently due to a higher interest rates environment, which boots their interest income. We are okay to own either, with a preference for SLF. SLF is 10.8X earnings, with a 4.29% dividend, with a 5-year dividend growth of 9.43%. MFC is 8.9X, 4.92% yield, dividend growth 9.72%. MFC has cut its dividend in the past, and we see SLF as the more stable company overall. That said, for insurance exposure, we like IFC most at the moment.