December 10, 2018

Sun Life Financial (SLF)

 

 


 

 

Sun Life Financial (SLF) is one of Canada’s leading insurance companies.  They have an increasingly global presence and offer a broad range of, “Protection and wealth accumulation products and services” to individuals and businesses of all sizes.  Sun Life was created in 1865 and is headquartered in Toronto, Canada.  It has roughly 469 billion dollar worth of assets under their management.  Through their partners Sun Life Financial (SLF) has operations in 24 countries including the USA, United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda.  Their stock (SLF) is traded on the American and Philippine stock exchanges as well as the TSX.

 

Sun Life FinancialSun Life Financial (SLF) does the majority of its business in personal insurance and financial advice services.  Their main divisions are 1) life insurance, 2) health, medical, dental and disability insurance, 3) educational savings, and 4) investing and retirement planning services.  They also offer a multitude of financial products such as annuities and other financial security solutions.  Sun Life (SLF) touts itself as a company that has decades of experience within the industry and has products designed for every unique situation and stage of life.  They have branches and advisors for all aspects of financial management.  Plainly they are doing a good job as they were recognized as the most trusted life insurance company in Canada by the 2011 Reader’s Digest Trusted Brand consumer survey.  This was the second consecutive year that the company was recognized among 38 of its competitors.

 

Sun Life takes special pride in being a great corporate citizen.  This includes environmental considerations and social charity contributions amongst other areas.  They were named one of Canada’s best 50 corporate citizens by the Corporate Knights, and most notably was named one of the Global 100 Most Sustainable Corporations in the World.  That list is compiled from a broader record of 3,000 companies from 22 countries.  Sun Life (SLF) was the only North American insurance company on the list, and it is the fifth time in seven years it has been honoured with the award.

 

In recent news Sun Life Financial (SLF) has named Dean Connor its new CEO as current chief executive officer Donald Steward has announced his retirement in November.  Connor graduated from the Richard Ivey School of Business in 1978 and went into actuarial math and the insurance industry.  Upon being asked about the future of the company Connor pointed out the opportunity for growth in the exploding middle classes in India and China.  Financial management runs in the Connor family as his father headed up the compensation division at Stelco.

 

It is a tough time for insurance stocks of all stripes right now.  With low interest rates keeping bond yields low, and the myriad of problems plaguing the world’s equities markets, all of the major insurance providers including Sun Life Financial (SLF) have seen their share of volatility and lows.  However, this has presented opportunities with a unique buying opportunity.  In my opinion, insurance companies are like banks and almost never lose money in the long run.  As new regulations stabilize the industry, I believe that now would be a great time for value investors to snap up some great entry positions.  You can get the stock right now for the miniscule Price-to-Earnings ratio of 9.17 and will give you a sweet 5.5% dividend yield!  While the dividend hasn’t been raised in a few years, Sun Life Financial (SLF) showed a willingness to raise dividends in the past when the market was a little better.  This is an ideal stock to take advantage of the overall market recovery with.

 

Sun Life Financial (SLF) Dividend Stock Graph:

TSE SFL

Sun Life Financial (SLF) Dividend Metrics:

TickerNamePriceDividend YieldPayout RatioDEBT_TO_MKT_CAPDividend Growth 5 yearsDividend Growth 1 years
SLFSun Life Financial Inc30.184.7750.940.37909787.0354730

 

 

 

Trackbacks

  1. […] Insurance & Financial Services (IAG) is the fourth largest insurance company in Canada trailing Sun Life Financial (SLF), Manulife Financial (MLF), and Great-West Lifeco (GWO).  While the company has long laboured in […]

  2. […] 2nd largest of the Canada’s Insurers, and is part of the three-headed oligopoly along with rivals Sun Life (SLF)  and Manulife (MFC).  They offer a broad range of services centered around life and health […]

Speak Your Mind

*