🔥 Premium AI-powered Stock Picks from InvestingPro Now up to 50% OffCLAIM SALE

Sun Life Financial boosts dividend as stock outperforms TSX index

EditorNikhilesh Pawar
Published 2023-11-18, 09:12 a/m
© Reuters.

TORONTO - Sun Life Financial (TSX:SLF) Inc . (TSX: NYSE:SLF) has announced a significant increase in its quarterly dividend and a strong stock performance that has notably outpaced the S&P/TSX Composite Index. Today, the company reported an uptick of over 9% in its stock value for November and a remarkable year-to-date return of nearly double that of the TSX index at 12.9%.

The insurer's decision to raise its quarterly dividend by an annualized rate of 4.5% to $0.78 per share for Q4 marks the eighth consecutive year of dividend growth. This move reflects the company's solid financial standing and commitment to shareholder returns.

With $1.3 trillion in managed assets, Sun Life has benefited from stable high-interest rates, particularly in its wealth and asset management sector, which saw a profit increase of 9%. The firm's robust dividend history dates back to its initiation in 2000, and it boasts a current yield of an attractive 4.5%. These dividends are securely backed at nearly half of adjusted earnings.

Investors looking to benefit from the December dividend payout are advised to acquire shares before the end of November. This timeframe is crucial for eligibility for the upcoming distribution.

The company's strategic focus includes expanding its client base in Asia and leveraging favorable high-interest rates to invest insurance premiums at advantageous rates into 2024. This strategy, along with the strong performance in asset management profits, positions Sun Life for continued financial gains.

Over a decade-long comparison, Sun Life has consistently shone brighter than the S&P/TSX Composite Index by a significant margin. This trend underscores the insurer's resilience and adaptability in various market conditions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.