Gavin Graham Sun Life Financial Inc SLF-T STRONG BUY Oct 20, 2000

Benefits from demographics and growth engine in Asia. Recent results not that strong; dig more into those before you jump in. Good, long-term business.

Some weakness in recent results. Sometimes when a stock's run up, and results come in lighter than expected, stock sells off on a trade. Fundamentals haven't shifted significantly. Relatively stable earnings, so it's good for income. Asset management divisions can be lumpy with interest rate moves. Reasonable investment for income with some growth.

She owns CB.

Best-performing insurer through the financial crisis. Largest foreign insurer in India, so not just in Canada. Great job in life insurance and asset management. Conservatively run. Steady dividend grower. Looking for 7-10% earnings growth over time. Core holding for him.

As a value investor, not growth, he didn't like SLF when markets were ripping higher late last year. However, if this falls down to its trend line of $70, he would buy.

Over time it should get back to $88. Life insurance companies have less exposure to tariffs and recession than banks. Banks are more vulnerable to rising unemployment. Near term, life insurance companies are better buys than banks but longer term banks are better.

Its EM exposure was always viewed positively because it helps to propel growth. That's flipped a bit against it. Very well run, attractive dividend. An income name. If you own, just sit tight. He owns GWO instead.

Start with valuation -- 10x 2026 for 12% growth. A few bad quarters with a weaker US, which caught market by surprise. Outlook improving. Worst-case on the tariff war (which is not his base case), there will be less $$ floating around to buy insurance products. 

Don't buy this name right now. Longer term you're fine. Steady compounder, safe dividend that will grow. Instead, he'd buy MFC on its cheaper valuation (which, for him, makes it safer).

Their last quarter was penalized due to some stop-loss insurance on their books and a small impairment from an investment in Vietnam and softer flows at MSF, their US investment arm. Is now in a range worth buying. This and MFC remain core holdings of his. It yields a safe 4.13%

Now is a good time to take some money off the table. Financials have outperformed the fundamentals in the next few years. Wait for a better entry point, when the market dips as it did in early April, which he expects in the near future. Good company, track record and dividend. No problem with SLF fundamentally.

Chart looks great. Above 200-day and 200-week MAs, which are both moving higher. Not explosive growth, but steady eddy instead. 11-12x forward PE. Pretty decent dividend of 4%.