Sun Life dividend
Sun Life paid C$3.52 per share in 2025, up from C$2.31 in 2021. Its underlying dividend payout ratio was 48% in the second quarter of 2026, and it produced C$602 million after dividends in the first half of 2026.
How much does Sun Life pay shareholders?
In the second quarter of 2026, the underlying dividend payout ratio was 48%, within the 40–50% objective. Dividends per share rose from C$2.31 in 2021 to C$3.52 in 2025, but future payments depend on remittable subsidiary capital and parent liquidity, not history alone.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| − Dividends, per share | 3.49 | 3.22 | 2.99 | 2.74 | 2.29 |
| − Share buybacks, per share | 3.02 | 1.47 | 0.32 | 0.00 | 0.00 |
| = Kept, per share | 0.55 | 1.93 | 2.13 | ||
| = Paid out more, per share | 0.37 |
What this means. In 2025, Sun Life paid shareholders more than it earned because dividends and share buybacks together exceeded its profit per share.
Is Sun Life's dividend covered by its cash?
Insurance capital also makes ordinary industrial measures misleading. Much of an insurer’s investment portfolio supports future claims, so it is not spare cash that can simply be netted against debt. Sun Life’s parent company held C$2.3 billion of cash and liquid assets, while subordinated debt was C$8,920 million. Capital generation is the better test: Sun Life produced C$602 million after dividends in the first half of 2026, while its underlying payout ratio was 48%.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| = Earnings for common shareholders | 3,472 | 3,049 | 3,086 | 2,871 | |
| − Dividends declared on common shares | 1,975 | 1,875 | 1,762 | 1,614 | 1,351 |
| − Share buybacks | 1,707 | 855 | 186 | 0 | 0 |
| = Kept to grow and build capital | 319 | 1,138 | 1,257 | ||
| = Paid out more than it earned | 210 | ||||
| Paid out, % of earnings for common | 106.0% | 89.5% | 63.1% | 56.2% |
What could change Sun Life's dividend?
Dividends rise moderately in the base case from C$3.70 to C$3.90 and then C$4.10. This is below the recent 8%–9% annual increases because the current payout is already 48% and operating risks remain. The bear case holds dividends near C$3.69 throughout, protecting capital if earnings weaken. The bull case reaches C$3.80, C$4.18 and C$4.60 as claims improve and earnings reach the medium-term target.
The forecast would move toward the bear case if MFS withdrawals weaken fee growth, U.S. claims outpace repricing during 2027–2028, or capital demands constrain buybacks through 2029. A weaker LICAT ratio or slower underlying EPS growth would also make the lower multiple more credible.
What is Sun Life's dividend yield against its price?
The shares rose 27.0% over one year and 20.3% over six months, but declined 0.6% over three months. At C$111.21, they were about 6.5% below the annual high and 39% above the low. This describes the path of the price, not the cause of each move.
| Today (Oct 15, 2026) | |
|---|---|
| Share price | 111.21 |
| Market value (calculated) | 61,928.93 |
| P/E, last 12 months (calculated) | 18.8x |
| P/E on core earnings, last 12 months (calculated) | 14.4x |
| Price to book (calculated) | 2.6x |
| Dividend yield (calculated) | 3.5% |