AInvest Newsletter
Daily stocks & crypto headlines, free to your inbox
Sun Life: A Top Dividend Stock for Income Investors
ByAinvest
Tuesday, Aug 12, 2025 12:53 pm ET1min read
Sun Life (SLF) is a great dividend stock with a yield of 4.49% and annualized dividend of $2.55, up 6.3% from last year. The company has increased its dividend 5 times in the last 5 years, with an average annual increase of 8.94%. SLF is expecting earnings to expand in 2025, with a year-over-year growth rate of 9.88%. The company's payout ratio is 51%, and it has a Zacks Rank of #2 (Buy).
Sun Life Financial Inc. (SLF) has announced an increase in its quarterly dividend, reflecting the company's strong financial performance and commitment to shareholder returns. The new dividend of $0.64 per share represents a 1.0% increase from the previous quarterly dividend of $0.63, with an annualized dividend yield of 4.5% [1].The company's stock has experienced a decline of 7.9% over the past year, trading at $56.65 with an average daily volume of 685,726 shares. Despite the stock performance, Sun Life Financial reported earnings per share (EPS) of $1.29 for the last quarter, meeting analyst estimates. However, revenue of $6.65 billion fell short of expectations of $7.34 billion [1].
Sun Life Financial has a payout ratio of 45.2%, indicating that its dividend is sufficiently covered by earnings. Analysts expect the company to earn $5.67 per share next year, which would maintain a payout ratio of 45.1% [1].
The company's recent earnings report highlights its resilience amid U.S. Medicaid challenges and leveraging Asian growth and wealth management resilience. Asian operations drove a 15% net income growth, while wealth management reported $300 million in net income despite market volatility. The company's strong liquidity coverage ratio (LICAT) of 151% and $400 million in share repurchases underscore its capital discipline [2].
Looking ahead, Sun Life Financial expects earnings to expand in 2025, with a year-over-year growth rate of 9.88%. The company's Zacks Rank of #2 (Buy) further supports its strong outlook [1].
References:
[1] https://www.marketbeat.com/instant-alerts/sun-life-financial-inc-nyseslf-increases-dividend-to-064-per-share-2025-08-08/
[2] https://www.ainvest.com/news/sun-life-financial-q2-2025-earnings-navigating-medicaid-uncertainty-leveraging-asian-growth-wealth-management-resilience-2508/
Ainvest News articles are AI-generated using advanced large language model (LLM) technology designed to analyze and synthesize publicly available data and news. While AI tools assist in producing initial drafts and insights, all AI generated content published on Ainvest is subject to comprehensive human editorial review before publication. A designated human editor reviews, verifies, and approves each article for factual accuracy, coherence, and compliance with AInvest Fintech Inc’s editorial and disclosure standards.
Despite these review procedures, the information provided may still contain inaccuracies, incomplete data, or time sensitive references due to the inherent limitations of AI generated analysis and evolving changes. The material is provided strictly for informational and educational purposes and does not constitute personalized investment, legal, or financial advice. Readers should independently verify all facts, figures, and statements before making any decision based on this content.
AInvest Fintech Inc. its affiliates, and partners accept no liability or responsibility for any direct or consequential losses arising from reliance on this content. All articles and analyses are subject to revision, update, or removal without prior notice to maintain accuracy and integrity in our publications.
Comments
No comments yet