Dividend Stock Analysis: Sun Life Financial Inc. (TSE: SLF)
I figured that I would finish off the last of the three insurance companies I was comparing, Lets see how Sun Life Financial stacks up against Great West Lifeco and Manulife Financial.
About the company:
Here is Company description of what they do, which can be found on their website here
What the professionals think:
| Source | Value | Score |
|---|---|---|
| Is it a Dividend Aristocrat: | Yes | 0.5 |
| Is it a Dividend Achiever: | Yes | 0.5 |
| Globe Investor Rating: | 4 Stars | 0.25 |
Score: 1.25/1.5
Dividend performance:
Dividend Information acquired at DividendInvenstors.ca
| Measurement | Value | Measurement | Value |
|---|---|---|---|
| Dividend Rate: | $1.44 | Quarterly Dividend Rate: | $0.36 |
| Current Dividend Yield: | 3.50% | 5 yr. Avg. Dividend Yield: | 2.20% |
| 3 yr. Dividend Growth: | 10.78% | 5 yr. Dividend Growth: | 15.02% |
| Payout Ratio: | 34.00% | 5 yr. Historic Payout Ratio: | 31.00% |
| Measurement | Value | Score |
|---|---|---|
| Is current Yield > Avg Yield: | Yes | 1 |
| > 10% dividend growth per year: | Yes | 1 |
| > 5 yrs of dividend growth: | Yes | 1 |
| payout ratio <= historic payout ratio: | No | 0 |
Score: 3.0/4.0
Fundamentals:
All fundamentals based on 2007 annual report, and the latest market close share price of $41.43
| Measurement | Value | Score |
|---|---|---|
| Earnings per share (EPS): | 4.07 | - |
| Is EPS growing: | Yes | 0.5 |
| Net Profit Margin: | 10.8% | - |
| Is Net Profit Margin growing: | Yes | 0.5 |
| Price/Book Ratio (P/B) < 0.80: | 1.35 | 0 |
| Price/Earnings Ratio (P/E) < 15: | 10.18 | 0.5 |
| Price/Sales Ratio (P/S) < 1.5: | 1.10 | 0.5 |
| Is the Graham Number > stock price: | $52.97 | 1 |
Score: 3.0/3.5
Technicals:
Chart Acquired at StockCharts.com
| Measurement | Value | Score |
|---|---|---|
| 200 day Simple Moving Average direction: | Down | 0 |
| Indicators show a good time to buy (MACD, SSTOCH, RSI): | Yes | 0.5 |
Score: 0.5/1.0
Total Score: 7.75/10
Summary:
Unlike Great West Lifeco and Manulife Financial, Sun Life Financial's price is lower then its Graham Number, this is a very good signal that it might be time to pick up some shares in this stock. Out of the three stocks that we have compared over the last 2 weeks, I would have to go with Sun Life as being the best stock to pick up at this time. I am a strong believer of the Graham Number, and what I see here is a stock whose valuation is very attractive. I know a lot of people are hesitant to jump into anything financial right now, but if you are in the market for something, I would recommend looking at TSE: SLF.
Recommendation:BUY
Full Disclosure: I currently do NOT own shares in TSE: SLF
Disclaimer: Any information contained in the above article represents my opinions only, and should not be construed as personalized investment advice. I cannot assess, verify or guarantee the suitability of any particular investment to any particular situation and the reader of the article bears complete responsibility for its own investment research and should seek the advice of a qualified investment professional that provides individualized advice prior to making any investment decisions. All opinions expressed and information and data provided therein are subject to change without notice.
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