Sun Life Dividend Raised, Again

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Yesterday, Canadian insurer Sun-Life Financial (SLF) announced that operating earnings increased 4% in the 4th quarter to $C0.98/share. Excluding the impact of the strong Canadian dollar, earnings would have been up 12%. Full year 2007 earnings came in at 11% over 2006 EPS, and Operating Return on Equity was 14.3% for 2007, up from 13.8% in 2006. These results could hurt the stock, as it has missed analyst estimates by the amount of the currency hit.

Richard P. McKenney, Sun Life's Chief Financial Officer said:

Our 2007 EPS growth and ROE are strong despite volatile economic conditions. The strength of our balance sheet enables our continued pursuit of our growth objectives.

I own shares of SLF. I have discussed Sun Life Financial in these two previous posts: "Sun Life Financial Purchase," and "life's brighter under the sun."

Sun Life (SLF) also raised its quarterly dividend to C$0.36/share from C$0.34/share. This represents a 6% increase. Sun Life has increased its dividend 12.5% over the past 12 months.

Here is a snapshot of SLF's recent dividend history:

2005 = C$0.99/share
2006 = C$1.105/share
2007 = C$1.28/share
2008 = C$1.42/share (assuming no 2nd increase)

This represents an annual raise compounded at around 13% over the last four years.