Sun Life Financial Inc (SLF-T)

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.

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.

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.

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.

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.

Was a little turbulent after its earnings miss, but it remains solid. Don't sell. It will return to and exceed previous highs.

MFC has a slightly better dividend than SLF right now, though he likes both names. MFC is also slightly cheaper than SLF, so that's why MFC is in his portfolio.

A lifeco, but also offers investment products. Solid, dependable. Never very exciting growth, well capitalized, prudent capital allocator. Dividend well covered and should grow. Asian angle gives it a bit of growth. Yield is ~4%.

He also owns MFC, and you can give that one a look. Similar business to SLF.

All the insurance names, both in Canada and the US, continue to work. If interest rates do, in fact, go higher, that will only be beneficial for lifecos and other insurers. The chart looks fantastic. Good run, so there is some weakening in the intermediate term.

If a long-term holding, best thing you can do is sit on your hands and do nothing except participate in the DRIP program. Especially if he's right on the broader call of rates being 8-10% in the secular bear market of 2030-40, should be a big tailwind for insurers.

IFC did well this year, but SLF has done better. MFC was hit by variable annuity issues. SLF is stabler. Insurers were undercapitalized, but have seen more capital since Covid. Interest rates in US and Canada have bottomed, he thinks.

Owns shares in the business. Very strong franchise in Canada. Recent 52 week high of share price indicative of business success. Very strong assets with reliable dividend. Would suggest a good long term investment. 

His #3 choice in the space, behind MFC at #2, and FFH at #1.

The extended low interest rate from 2008-2020 hurt insurance companies when they used the bond market to fund their very long-tail liabilities can can push up the risk curve on their investments. The lifecos are in good shape, though, and will benefit from lower rates. They continue to pay dividends, grow well and trade at decent multiples. SLF outperforms MFC.

The extended low interest rate from 2008-2020 hurt insurance companies when they used the bond market to fund their very long-tail liabilities can can push up the risk curve on their investments. The lifecos are in good shape, though, and will benefit from lower rates. They continue to pay dividends, grow well and trade at decent multiples. SLF outperforms MFC.

Interest rates going down is, theoretically, bad for the insurance business but good for dividends. Yield's around 4%, with about 10% stock appreciation. Counting on nice dividend increases. Normally regarded as one of the best-run; overshadowed by turnaround in MFC.