Sun Life Financial Inc. (NYSE:SLF) to Issue Dividend Increase - C$0.96 Per Share

Key Points

• Sun Life raised its quarterly dividend to C$0.96 per share, payable June 30 to shareholders of record on May 27, a 4.3% increase from C$0.92 and implying a roughly 5.4% yield.
• The payout appears sustainable: Sun Life has increased dividends for 11 consecutive years, has a current payout ratio of 47.7%, and analysts forecast $6.25 EPS next year (implying an expected payout ratio of about 43.2%).
• The stock slipped about 3% after the announcement; Sun Life trades with a market cap near $39.3B and a P/E of ~16.2, and carries an average analyst rating of "Moderate Buy" with a consensus target of $86.50.

Sun Life Financial Inc. (NYSE:SLF - Get Free Report) TSE: SLF announced a quarterly dividend on Wednesday, May 6th. Stockholders of record on Wednesday, May 27th will be paid a dividend of 0.96 per share by the financial services provider on Tuesday, June 30th. This represents a c) annualized dividend and a dividend yield of 5.4%. The ex-dividend date is Wednesday, May 27th. This is a 4.3% increase from Sun Life Financial's previous quarterly dividend of $0.92.

Sun Life Financial has raised its dividend by an average of 0.1%annually over the last three years and has increased its dividend annually for the last 11 consecutive years. Sun Life Financial has a dividend payout ratio of 47.7% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Sun Life Financial to earn $6.25 per share next year, which means the company should continue to be able to cover its $2.70 annual dividend with an expected future payout ratio of 43.2%.

Sun Life Financial Stock Down 3.0%

Shares of SLF opened at $70.88 on Thursday. The company has a market capitalization of $39.27 billion, a price-to-earnings ratio of 16.16 and a beta of 0.91. Sun Life Financial has a 52-week low of $56.22 and a 52-week high of $74.16. The stock has a 50 day moving average price of $65.92 and a 200 day moving average price of $63.28.

Sun Life Financial (NYSE:SLF - Get Free Report) TSE: SLF last issued its quarterly earnings data on Wednesday, February 11th. The financial services provider reported $1.41 earnings per share for the quarter, beating analysts' consensus estimates of $1.35 by $0.06. Sun Life Financial had a return on equity of 17.76% and a net margin of 8.48%.The company had revenue of $973.53 million during the quarter, compared to analysts' expectations of $973.53 million. During the same quarter in the previous year, the business earned $1.68 earnings per share. On average, equities analysts anticipate that Sun Life Financial will post 5.7 EPS for the current fiscal year.

Analysts Set New Price Targets

Several equities analysts have weighed in on SLF shares. Royal Bank Of Canada restated a "sector perform" rating on shares of Sun Life Financial in a report on Friday, February 13th. BMO Capital Markets reiterated an "outperform" rating on shares of Sun Life Financial in a research report on Friday, February 13th. Canadian Imperial Bank of Commerce reissued a "neutral" rating on shares of Sun Life Financial in a research note on Thursday, January 8th. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Sun Life Financial in a research note on Wednesday, January 21st. Finally, Barclays reiterated an "underweight" rating on shares of Sun Life Financial in a report on Thursday, January 8th. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, four have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $86.50.

Sun Life Financial Company Profile

Sun Life Financial Inc, founded in 1865 and headquartered in Toronto, Ontario, is an international financial services organization that provides a range of insurance, wealth management and asset management solutions. The company serves individual and institutional clients, offering products designed to protect against life and health risks, help clients save for retirement, and manage investments on behalf of customers and third parties.

Core business activities include life and health insurance, group benefits for employers, retirement and pension products, and wealth management services such as mutual funds and segregated fund solutions.

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