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Sun Life declares dividends on Common and Preferred Shares payable in Q1 2024

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Sun Life Financial Inc. (SLF) has declared a dividend of $0.78 per share on its common shares, payable on March 28, 2024, to shareholders of record on February 28, 2024. The same amount has been paid in the previous quarter. Additionally, dividends have been declared on the Company's Class A Non-Cumulative Preferred Shares, with varying amounts per share. The company has also designated the dividends as eligible dividends for the purposes of the Income Tax Act (Canada).
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Insights

Dividend declarations are a significant indicator of a company's financial health and its commitment to returning value to shareholders. In the case of Sun Life Financial Inc., maintaining the dividend at $0.78 per share for common shares indicates stability in the company's earnings and cash flow. The consistency in dividend payments can reassure investors of the company's financial prudence and its ability to generate sufficient cash to meet these obligations. Furthermore, the declaration of dividends on various series of Class A Non-Cumulative Preferred Shares suggests a structured approach to fulfilling corporate responsibilities to all shareholders, including preferred ones.

Investors often view preferred shares as a hybrid between bonds and common stocks, offering a fixed dividend that is generally higher than common stock dividends. The detailed breakdown of dividends across Series 3 to Series 11QR reflects the company's adherence to the specific terms set for each series, which can be complex but is essential for preferred shareholders who prioritize stability and predictability in income streams.

It is also noteworthy that the dividends have been designated as eligible dividends under the Income Tax Act (Canada), which has tax implications for Canadian investors. Eligible dividends are taxed at a lower rate than ordinary income, which can be a favorable factor for individual tax planning. This designation could influence the attractiveness of Sun Life Financial Inc.'s shares for income-focused investors, particularly those in higher tax brackets.

From a market perspective, the decision to purchase common shares under the Company's Canadian Dividend Reinvestment and Share Purchase Plan on the open market is a move that could potentially support the share price. By reinvesting dividends to purchase additional shares, the company is indirectly ensuring a continuous demand for its stock, which can help stabilize or even increase the share price over time. This strategy also demonstrates the company's confidence in its own stock as a worthwhile investment.

Moreover, the use of multiple Canadian stock exchanges and alternative trading platforms for the purchase of shares under the Plan indicates Sun Life Financial Inc.'s commitment to liquidity and accessibility for its investors. By diversifying the purchasing venues, the company ensures that the reinvestment process is less likely to significantly impact the stock's price on any single exchange, which is a prudent approach to market operations.

Sun Life logo (CNW Group/Sun Life Financial Inc.)

TORONTO, Feb. 7, 2024 /PRNewswire/ - The Board of Directors (the "Board") of Sun Life Financial Inc. (the "Company") (TSX: SLF) (NYSE: SLF) today announced that a dividend of $0.78 per share on the common shares of the Company has been declared, payable March 28, 2024 to shareholders of record at the close of business on February 28, 2024. This is the same amount as paid in the previous quarter.

The Board also announced that the following dividends have been declared on the Company's Class A Non-Cumulative Preferred Shares, payable on March 28, 2024 to shareholders of record at the close of business on February 28, 2024:

Series 3

$0.278125 per share

Series 4

$0.278125 per share

Series 5

$0.28125 per share

Series 8R

$0.114063 per share

Series 9QR

$0.402145 per share

Series 10R

$0.185438 per share

Series 11QR

$0.449515 per share

Common shares of the Company acquired under the Company's Canadian Dividend Reinvestment and Share Purchase Plan (the "Plan") will be purchased by the Plan agent on the open market through the facilities of the Toronto Stock Exchange and through the facilities of other Canadian stock exchanges and alternative Canadian trading platforms.

Sun Life Financial Inc. has designated the dividends referred to above as eligible dividends for the purposes of the Income Tax Act (Canada).

About Sun Life

Sun Life is a leading international financial services organization providing asset management, wealth, insurance and health solutions to individual and institutional Clients. Sun Life has operations in a number of markets worldwide, including Canada, the United States, the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China, Australia, Singapore, Vietnam, Malaysia and Bermuda. As of December 31, 2023, Sun Life had total assets under management of $1.40 trillion. For more information, please visit www.sunlife.com.

Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine (PSE) stock exchanges under the ticker symbol SLF.

Note to editors: All figures in Canadian dollars


Media Relations Contact:

Investor Relations Contact:


Krista Wilson  

David Garg


Director 

Senior Vice-President, Capital


Corporate Communications

Management and Investor Relations


T. 226-751-2391 

T. 416-408-8649


krista.wilson@sunlife.com 

david.garg@sunlife.com

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/sun-life-declares-dividends-on-common-and-preferred-shares-payable-in-q1-2024-302056738.html

SOURCE Sun Life Financial Inc.

FAQ

What is the dividend amount declared for Sun Life Financial Inc. common shares?

The dividend declared for Sun Life Financial Inc. common shares is $0.78 per share, payable on March 28, 2024.

When will the dividend be paid to shareholders of Sun Life Financial Inc.?

The dividend will be paid to shareholders of Sun Life Financial Inc. on March 28, 2024.

What are the designated dividends for Sun Life Financial Inc. according to the Income Tax Act (Canada)?

Sun Life Financial Inc. has designated the dividends as eligible dividends for the purposes of the Income Tax Act (Canada).

Sun Life Financial Inc.

NYSE:SLF

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34.15B
575.29M
0.04%
57.09%
0.77%
Insurance - Diversified
Financial Services
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United States of America
Toronto