Sun Life Financial Inc

SLF-T

Issue is that interest rates remain low. Has grown asset management franchise. Better global franchise. Bought into alternative asset classes. Insurance business is plodding along. Good dividend yield, not a high multiple. Prefers the banks, but not a bad idea at these levels.

Insuranace companies make money investing the proceeds of premiums into bonds. If bond yields are low it hurts their profitability. SLF-T has done a good job to diversify their business geographically. He also likes how they have moved into money management. He likes it and will continue holding it. Yield 4%

All financials are not the same. Insurance companies have been the place to be recently. It's at support. Stick with the insurance companies but perhaps broaden out which ones you are in to avoid execution risk.

Not a bad stock, it's the best of the life insurers. But he's concerned about the financials in general. In for a more difficult time, as spreads are not conducive to profits. Late in the game to buy. Dividend's not bad. Tariffs could cause interest rates to decline even further.

(A Top Pick May 30/18, Up 3%) He liked it then and likes it even more now. Lifecos are a good defensive play at this time, especially when they are all so well capitalized.

The insurance companies are a fairly defensive position to be in. They have significant excess capital. In the most recent quarter there was new business strain, which leads to profitability later on. This is a reasonable investment to make. (Analysts’ price target is $56.45)

This is a solid stock. He did own it and took profits. He would buy back if it got to $50. A good defensive play. Good yield.

He sold it 8 months ago, but still likes it. It's come back well. Definitely the best Canadian insurer to buy, but he's backing away from Canadian financials as a whole. It's a long-term hold that pays a good dividend. They're on top of the investment markets.

Insurance in a portfolio? He sold their Power Financial holding last year. Following the banking crisis it just has not recovered. It owns GreatWest Life and IGM -- neither has done well. Insurance is a better bet than banks, he thinks. He would prefer SLF-T in Canada and AFG-N in the US.

Some of the insurers have been performing decently lately. In part because you have a dividend supporting it. 3.8% dividend yield now and sustainable. He likes the space now.

SLF vs. MFC MFC is the trading stock vs. SLF is the holding stock (more than a year). Long-term, SLF has a smooth chart, and MFC has been jumpy--but you can make money on those big swings.

Trading at 10 x earnings with 10-1% growth. Dividend yield is 3.9%. 10% of the revenues come from Asia. Very leveraged to what happens in the equity markets. Watch where it stands to the 200-day moving average.

It should be going higher. We are seeing a period of rising interest rates which the lifecos should benefit from. There is a reverse head and shoulder pattern. It is very bullish. It should test at $51/52. Buyers are stepping in to accumulate the stock. It is poised for further upside in 20/21.