Sun Life (SLF) Could Be a Great Choice

Company Overview - Sun Life (SLF) is headquartered in Toronto and operates in the Finance sector, with a stock price change of -0.19% since the start of the year [3] - The company currently pays a dividend of $0.64 per share, resulting in a dividend yield of 4.29%, which is significantly higher than the Insurance - Life Insurance industry's yield of 1.74% and the S&P 500's yield of 1.5% [3] Dividend Performance - Sun Life's annualized dividend of $2.54 has increased by 5.8% from the previous year [4] - Over the past 5 years, the company has raised its dividend 5 times, achieving an average annual increase of 8.94% [4] - The current payout ratio is 51%, indicating that the company pays out 51% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - For the fiscal year 2025, the Zacks Consensus Estimate predicts earnings of $5.33 per share, reflecting a year-over-year growth rate of 9.67% [5] - The company's future dividend growth will depend on earnings growth and the payout ratio [4] Investment Considerations - High-growth firms or tech start-ups typically do not offer dividends, while established companies with secure profits are often preferred by income investors [6] - Sun Life is considered a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [6]