Sun Life Financial Inc (SLF.TO)

All the lifecos will be benefiting from rising interest rates. The amazing thing with this company is that they were never hurt during the financial crisis and never had to cut their dividend. Trading at 11X earnings. Great presence in the US and India. At this valuation with a rising dividend and excess capital, we are undoubtedly going to see increasing share buybacks. Dividend yield of 3.7%. (Analysts’ price target is $52.)

He prefers Canadian banks over lifecos in Canada. This one has a concern with (MFS), their asset management division, which has continued to see outflows. It is well managed and they put out an okay quarter last night. They missed analysts’ expectations on MFS. Let it check back another dollar or two.

This and Manulife (MFC-T) are both good names, and both have benefited from the anticipated rise in interest rates. They’ve lagged the banks and there is a valuation adjustment that can occur. Prefers Manulife (MFC-T) because of its opportunities in Asia.

This had a negative US experience, which he sees turning around in the 2^nd half. Just missed on the 2^nd quarter. The Asian business is doing well being up 16%. He models them growing earnings at 7% compounded annually over the next couple of years. A little more expensive than Manulife (MFC-T), but coming much closer. Longer-term, this is fine. All things being equal, he would be buying it closer to $45.

(A Top Pick July 8/16. Up 20.25%.) He still likes this and the distribution of their business. A good, long term stock.

It has a period of strength from September to December each year. We are still in a downward trend and it is forming a base. It is too early to consider it from a seasonal perspective. Take another look in the fall.

Insurance is not one of her favourite sectors. Ever since the chatter started with Manulife (MFC-T) and what they might do to offload some of the US assets, this has interested her. If she were to buy an insurance company, it would probably be Manulife today.

Canadian banks are starting to appear in his “okay to buy” list, but lifecos have not shown up yet. His ranking is 122 out of 720, but when looking at earnings and cash flow, both have been negative on a year-over-year basis.

You have to believe rates are going to go up substantially over the next little while. This is not an expensive stock and has a great dividend yield. A much more complicated product than being a house insurance policy. They don’t have a presence in Asia like Manulife (MFC-T).

Prefers Manulife (MFC-T), although the earnings are not terribly different, but Manulife is somewhat cheaper, and also is very well-placed to benefit from the growth in Asia.

A very well-managed company. The market problems lately, particularly on the Canadian side, has held them back. They have a good product. This is a long-term hold. Good product spread. Dividend yield of 3.9%.

He likes both this and Manulife (MLF-T), and if he were buying today, it would probably be Manulife. Manulife is trading at 1.2X book as opposed to Sun Life of 1.4X. We are in a good environment for insurance companies.

A well-run insurance company, with global operations. The last quarter was a little disappointing, with some outflows in their US asset manager. Overall, he likes this and buys it on weakness. Good dividend. Good Asian growth.

He is disappointed in this right now. Most people are pointing to a weakness in the US for the decline in the last couple of months.

Had a tough Go in their last quarter with a lot of redemptions in the US on the mutual fund side. He would prefer Manulife (MFC-T) which has a stronger exposure to Asia. Also, their core business of selling insurance is going very well. He doesn’t own either. Dividend yield of 3.9%.