In terms of capital appreciation Manulife Financial has done poorly over the years, but it has been left as an integral part of my 50K Dividend goal.
A small 10 share position at $23.69 was initiated September 23, 2009. However, MFC slid further and 100 more shares were added at $18.84 on December 15, 2009. Taking the year's average price to $19.4618.
Over the years more shares were added at varying prices via direct share purchases and Dividend Reinvestment.
Average Price at Year-End:
2009: $19.4618
2010: $17.0131
2011: $15.9463
2012: $15.9209
2013: $15.9337
2014: $17.9087
2015: $19.9372
2016 (as of October): $19.2009
2015 signalled the high point of my MFC position when the June 26, 2015 DRIP acquired 3 shares @ $23.68. It took under five and a half years for MFC to round trip back to what I paid in the 2009.
After that peak MFC retreated significantly. It slid back as the oil oversupply crisis was starting to intensify and talk of MFC's oil related portfolio caused great uncertainty in the stock. This prompted me to acquire more shares @ $20.50 in September and then again @ $21.80 in November.
The oil crisis deepened in the start of 2016 and MFC slid alongside. This was my chance to add MFC to my 1K Club and take the risk of averaging down then wait for a recovery of the share price and reduce my exposure. The risk of course being that MFC continues lower and my position could grow to large in relation to my other holdings.
| Buy | 2016-03-29 | 10 | 18.86 |
| Buy | 2016-05-10 | 280 | 18.56 |
| Buy | 2016-05-13 | 290 | 18.04 |
| Sell | 2016-05-27 | 250 | 19.48 |
| Buy | 2016-06-03 | 200 | 19.04 |
| Buy | 2016-06-10 | 200 | 18.04 |
| Sell | 2016-10-11 | 300 | 19.37 |
The markets got a little iffy on May 10, but the price was good to load up my position to 1360 shares bringing MFC to the 1K club with a $1,006.40 yearly dividend.
The stock declined further prompting me to add even more shares on May 13. Fortunately, by end of month the price rebounded giving an opportunity to reduce my position at a small profit. Average price: $19.3756.
Markets remained choppy and again within a short period of time I overloaded my position by adding shares twice at lower prices. A few uncomfortable months later on October 11 with interest rate hike speculation increasing MFC rose again allowing me to pare back. Average price: $19.2009. Yield: 3.8539%.
The year isn't over yet and there will likely be more opportunities to average down my long position.
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