Sun Life (SLF) provides life insurance, retirement, and asset management products to individuals and corporate customers in Canada, the United States, and Asia.

The company’s investment management business contributes approximately 30% of its adjusted earnings and has around CAD 1 trillion in assets under management as of the fourth quarter of 2023.

The Canada business contributes about 35% of adjusted earnings and provides individual life and health insurance, group insurance, retirement services, and wealth management solutions.

The U.S. business contributed approximately 22% of earnings and is mainly focused on providing group insurance products and managing the in-force life insurance policies.

Finally, the Asia segment contributes around 13% of earnings.

The company was formerly known as Sun Life Financial Services of Canada Inc. and changed its name to Sun Life Financial Inc. in July 2003. 

Sun Life Financial Inc. was founded in 1871 and is headquartered in Toronto, Canada.

Three key data points gauge Sun Life Financial Inc or any dividend-paying firm. The key three are:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys also best tell whether any company has made, is making, and will make money.

SLF Price

Over the past year, Sun Life share price grew just about 1.67% from $48.37 to $49.18 as of Thursday’s market close.

If Sun Life shares trade in the range of $44.00 to $55.00 this next year, its recent $49.18 share price might rise to $52.00 by next year. Of course, Sun Life’s price could drop about the same $2.82 estimated amount, or more.

My annual upside estimate of $2.82 however, near the median of one year price target estimates from two analysts tracking  the stock for brokers.

SLF Dividend

Sun Life  has paid variable quarterly dividends for the past 23 years.  Sun Life ’s most recent Q dividend of $0.59 was declared May 9th for shareholders of record May 29th and the dividend is payable Due 28th.

A forward looking $0.59 x 4 annual dividend of $2.36 yields 4.8% at Thursday’s $49.18 share price.

SLF Returns

To put it all together, add the Sun Life projected annual dividend of $2.36 to the estimated price upside of $2.82 to get a $5.18 estimated gross gain for the coming year.

At Thursday’s $49.18 share price, a little under $1000 would buy 20 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, would cost us about $0.50 per share.

Subtracting that unlikely $0.50 brokerage cost from the $5.18 estimated gross gain reveals a net gain of $4.68 X 20 shares = $93.60 for about a 9.5% estimated net gain on the year.

If you're thinking of buying Sun Life Financial Inc., the $48.00 estimated dividend income from $1k invested is $1.18 under Sun Life’s recent $49.18 share price. Wait for SLF's price to drop below $48.60 before you pounce.

The exact track of Sun Life’s future price and dividend will entirely be determined by market action.

Remember, the true value of any stock is best realized through personal ownership of shares.

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