Sun Life Financial boosts dividend as stock outperforms TSX index

TORONTO – Sun Life Financial Inc . (TSX: NYSE:) 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.

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