Sun Life Financial Inc. Expects Potential Dividend Run Ahead of Upcoming Dividend Payment

Sun Life Financial Inc (NYSE: SLF) may be experiencing a "Dividend Run," a concept where a stock rises in anticipation of a dividend payment. The stock price is expected to drop by the dividend amount on the ex-dividend date, but before that, the stock may rise due to built-in "pressure" for a stock to gradually rise in expectation of the next cash dividend. The exact timeframe for capturing Dividend Run effects varies among investors, but it generally involves investing before the ex-dividend date and selling on or after the ex-dividend date to capture the dividend payment.

Sun Life Financial Inc (NYSE: SLF) is expected to go ex-dividend for its latest dividend of 0.639/share on August 27, 2025. This event could potentially trigger a "Dividend Run," a phenomenon where a stock price rises in anticipation of the dividend payment [1]. The concept of a Dividend Run stems from the expected behavior of a stock on its ex-dividend date, where the price is expected to drop by the dividend amount if all else remains equal [1].

Investors who employ Dividend Run strategies typically invest before the ex-dividend date and sell on or after the ex-dividend date to capture the dividend payment. The exact timeframe for capturing these effects varies among investors, but a common strategy involves investing about two weeks (ten trading days) prior to the ex-dividend date [1]. For example, Sun Life Financial's stock price gained 1.83 in the final two-week run-up to its last dividend of 0.637/share, which went ex-dividend on May 28, 2025 [1].

Historically, this strategy has captured a capital gain in excess of the dividend 3 out of 4 times for Sun Life Financial, with a total capital gain of +4.14 over the last four dividends [1]. This exceeds the sum total dividend amounts across those last four dividends, which were 2.425 [1].

Sun Life Financial's recent dividend increase to $0.64 per share, effective August 8, 2025, further supports the potential for a Dividend Run. The company's implied annualized yield of 4.49% and a payout ratio of 45.2% indicate that its dividend is sufficiently covered by earnings [2]. While Sun Life Financial's stock has experienced a decline of 7.9% recently, the company's earnings per share of $1.29 for the last quarter met analyst estimates [2].

Investors should remain cautious, as past performance is never a guarantee of future returns. However, for those who employ Dividend Run strategies, Sun Life Financial Inc (NYSE: SLF) is a notable stock to consider.

References:
[1] https://www.nasdaq.com/articles/upcoming-dividend-run-slf
[2] https://www.marketbeat.com/instant-alerts/sun-life-financial-inc-nyseslf-increases-dividend-to-064-per-share-2025-08-08/