Sun Life Financial (SLF), announced that a supplementary dividend of C$0.11 will be paid on common shares on December 31 to shareholders of record as of November 24. Sun Life is a Canadian financial services company, mainly known as a life insurance company, and one of the largest life insurance companies in the world.
The December payment is in addition to the quarterly dividend of C$0.55 per share the company declared on November 3.
Combined, shareholders will receive a total quarterly dividend of C$0.66 per share, a 20% increase from the previous quarterly dividend payment.
The dividend hike comes after a federal regulator lifted restrictions on November 4 that were put in place at the start of the pandemic to help protect the country’s financial institutions.
Sun Life said it remains committed to its dividend payout ratio of 40 to 50%. (See Analysts’ Top Stocks on TipRanks)
Wall Street’s Take
On November 5, CIBC analyst Paul Holden maintained a Buy rating on Sun Life and raised its price target to C$81 (from C$74). This implies 13.8% upside potential.
Overall, the consensus is that SLF is a Moderate Buy, based on nine Buys, one Hold, and one Sell. The average Sun Life price target of C$79.08 implies 11.8% upside potential to current levels.