Should I buy Sun Life stock in 2025?
Is Sun Life stock a buy right now?
Sun Life Financial (SLF) stands out as a leading diversified financial services provider in Canada’s vibrant financial sector. As of mid-May 2025, Sun Life shares are trading at approximately $87.94 CAD on the Toronto Stock Exchange, with a robust average daily trading volume of around 1.5 million shares. The company has posted an impressive year-to-date performance of +6.69% and a strong one-year gain of +22.38%, driven in part by stellar Q1 2025 results: underlying net income rose 19% year-over-year and earnings per share surged to $1.82. Notably, Sun Life recently increased its quarterly dividend by 5% to $0.88 CAD, bringing its annual yield to an attractive 4.01%. While technical indicators suggest the stock may be overbought in the very short term, overall market sentiment remains positive, thanks to ongoing growth in asset management, innovative digital initiatives, and significant expansion in Asia. Within the financial services sector, Sun Life is particularly well regarded for its stability, disciplined capital management, and international reach. According to the consensus of more than 33 leading national and international banks, the target price for Sun Life stock stands at $114 CAD, reflecting continued confidence in its long-term prospects.
- Consistent double-digit growth in net income, EPS, and return on equity.
- Attractive 4.01% dividend yield, with recent five percent increase.
- Expanding rapidly in high-growth Asian markets, especially India and China.
- Robust, diversified business mix across asset management, insurance, and health solutions.
- Strong LICAT ratio of 149% indicates excellent capital strength and flexibility.
- Short-term overbought technicals may lead to temporary price consolidation.
- Some U.S. business lines, like medical stop-loss, face mild profitability pressure.
- What is Sun Life?
- How much is Sun Life stock?
- Our full analysis on Sun Life stock
- How to buy Sun Life stock in Canada?
- Our 7 tips for buying Sun Life stock
- The latest news about Sun Life
- FAQ
- FAQ
What is Sun Life?
| Indicator (emoji + name) | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | Canadian | Headquartered in Toronto, Sun Life is a leading Canadian multinational insurer. |
| 💼 Market | TSX (SLF), NYSE (SLF) | Dual-listed, providing easy access for both Canadian and international investors. |
| 🏛️ ISIN code | CA8667961053 | This code uniquely identifies Sun Life shares on global markets. |
| 👤 CEO | Kevin Strain | CEO since 2021, driving digital transformation and international growth. |
| 🏢 Market cap | $35.8 billion USD | Sun Life is a large-cap stock, reflecting its diversified business and market relevance. |
| 📈 Revenue | $50.25 billion CAD (2024 trailing) | Reflects robust insurance and wealth management operations; benefiting from international growth. |
| 💹 EBITDA | $3.90 billion CAD (2024 trailing) | Strong EBITDA shows efficient operations and healthy profit margins for the sector. |
| 📊 P/E Ratio (Price/Earnings) | 16.14 (TTM); 11.93 (forward) | Current P/E is average for insurers; lower forward P/E suggests expectations for earnings growth. |
How much is Sun Life stock?
The price of Sun Life stock is rising this week. As of now, Sun Life (TSX: SLF) trades at $87.94 CAD per share, up 0.56% over the past 24 hours and gaining 1.30% this week.
The company holds a market capitalization of $35.8 billion USD, with an average 3-month volume reflecting strong trading activity.
| Metric | Value |
|---|---|
| P/E Ratio | 16.14 |
| Dividend Yield | 4.01% |
| Beta | 0.88 |
Sun Life’s beta of 0.88 points to slightly lower volatility than the broader market. Investors may find Sun Life appealing for its balance of growth, stability, and consistent income in today’s Canadian market.
Compare the best brokers in Canada!Compare brokersOur full analysis on Sun Life stock
Over the past three years, we have thoroughly analyzed Sun Life Financial’s (SLF) latest financial results and stock trajectory, leveraging a robust blend of financial indicators, technical signals, macroeconomic trends, and peer benchmarking through our proprietary models. The synthesis of this multifactor approach offers a multifaceted view into Sun Life's business resilience and market positioning—highlighting a company that continues to generate consistent value in an evolving sector. So, why might Sun Life stock once again become a strategic entry point into the financial services and diversified insurance landscape as we look toward 2025?
Recent Performance and Market Context
Sun Life Financial has delivered an outstanding performance, solidifying its standing as a cornerstone in Canada’s financial services sector. The stock reached a new 52-week high at $63.39 USD ($87.94 CAD) and is now trading at $63.27 USD. Its year-over-year appreciation of 22.38% markedly outpaces most North American financial peers, while the month-over-month surge of 12.12% reflects increased investor interest post-earnings.
This sustained momentum can be attributed to several significant developments:
- Strong Q1 2025 Results: Underlying net income rose by 19% to $1,045 million, and earnings per share expanded by 21% to $1.82.
- Dividend Increase: The quarterly dividend climbed 5% (from $0.84 to $0.88 CAD), indicating confidence in future cash flows and a continued shareholder-friendly posture.
- Growth in Assets Under Management: AUM reached $1.55 trillion, up 6% year-over-year, strengthening Sun Life’s global profile amid heightened demand for wealth solutions.
Sun Life benefits from a compelling sector backdrop: demand for wealth and health management solutions is rising across demographics, interest rates are stabilizing (improving investment income visibility), and diversified insurers are regaining market favour thanks to their defensive characteristics in uncertain macro cycles. These factors combine to create a highly favourable environment for Sun Life’s continued outperformance.
Technical Analysis
The technical structure of SLF’s stock currently presents a textbook case of bullish momentum—a scenario that should capture the attention of tactical investors and longer-term portfolio architects alike.
- Momentum Signals: The Relative Strength Index (RSI) stands at 72.46, denoting overbought conditions. While classically seen as an alert for potential consolidation, such robust readings in established trends often signal a protracted bullish phase, especially when accompanied by confirmation from other indicators.
- Trend Confirmation: The stock is trading above all major moving averages (20, 50, 100, and 200-day EMAs), with the shortest EMA (20d at $60.43) more than 5% below the current price. This bullish alignment suggests upward momentum remains intact.
- MACD: Positive at 1.60, underscoring strong short- and medium-term momentum.
- Support and Resistance: SLF is pressing key resistance at $63.37–$63.91 with strong support at $62.53 and $62.29, offering an attractive risk/reward positioning near previous breakouts.
Overall, this technical setup points to a period of bullish consolidation or a potential continuation pattern—an ideal context for scaling in ahead of future catalysts.
Fundamental Analysis
From an intrinsic perspective, Sun Life’s fundamentals underpin its recent rally and suggest further upside:
- Earnings Power: Sun Life’s Q1 2025 showcased double-digit earnings and revenue growth across all divisions, with underlying ROE at an impressive 17.7%. Asset management and wealth, the two most lucrative business lines, grew underlying net income by 19% and achieved industry-leading operating margins (MFS at 35.4%, SLC Management at 24.3%).
- Valuation Appeal: The forward P/E of 11.93 and P/S of 1.54 place SLF at a discount versus both its historical averages and key North American insurance rivals. The current price-to-book ratio of 2.10 further supports the case for an attractive entry, particularly given Sun Life’s above-market profitability metrics (ROE: 13.14%).
- Growth Engines: Sun Life is executing on high-growth vectors, particularly in Asian markets, where new distribution partnerships and digital capabilities are unlocking additional market share. The company’s balanced performance in both its core Canadian business and international divisions highlights a rare combination of stability and growth.
- Financial Strength: The LICAT ratio of 149% and steady dividend payout illustrate prudent capital stewardship, allowing for both growth investments and reliable income distributions.
Additionally, management’s commitment to digital transformation and expansion into health and benefits further buttresses SLF’s competitive moat, both domestically and abroad.
Volume and Liquidity
Trading activity in SLF underscores robust institutional and retail investor confidence:
- Sustained Volume: Volume has tracked above the 90-day average since the Q1 results release, with heightened turnover after dividend announcements and positive earnings surprises, highlighting renewed market engagement.
- Favourable Float: With a market capitalization of $35.8 billion USD and wide institutional ownership, SLF’s liquidity profile supports dynamic valuation and showcases its capacity to absorb larger positions without material price disruption. This healthy float and active trading environment offer ideal conditions for both long-term holders and tactical investors.
Catalysts and Positive Outlook
Sun Life is uniquely positioned to capitalize on several bullish catalysts in the coming quarters:
- Product and Geographical Expansion: Strong momentum in Asia (notably Hong Kong, India, and China) continues, supported by innovative distribution models and digital-first strategies. In North America, the expansion of group health and wellness offerings, as well as enhancements to wealth platforms, position Sun Life to capture secular tailwinds.
- ESG Initiatives: The company’s recent sustainability bond issuance and ongoing investments in socially responsible assets set Sun Life apart for ESG-conscious portfolios—an increasingly powerful theme driving institutional fund flows.
- Solid Capital and M&A Optionality: With capital ratios well above regulatory minimums, Sun Life has ample flexibility for acquisitions, buybacks, or further dividend increases.
- Defensive Qualities: In periods of market volatility, Sun Life’s diversified income streams and prudent risk management often provide welcome downside protection, making the stock a resilient allocation amid uncertain macro conditions.
Given these set pieces, Sun Life appears set for structural outperformance both in traditional insurance and modern, fee-based asset management.
Investment Strategies
Given the combined technical and fundamental strength, Sun Life’s current profile is attractive across investment horizons:
- Short-Term: For investors employing tactical strategies, a minor technical pullback or brief consolidation around current resistance ($63.37–$63.91) could present timely entry opportunities, especially as the next ex-dividend date approaches (May 28, 2025).
- Medium-Term: Positive momentum following earnings and the recent dividend hike suggest continued re-rating potential. Investors seeking yield in a rising-rate environment may find compelling value in establishing a core position now, ahead of potential capital deployment announcements or further AUM growth updates.
- Long-Term: Sun Life’s diversified, growth-oriented model and robust capital position make it an ideal candidate for buy-and-hold strategies. Its expanding global franchise, secular exposure to Asia and health/wealth management, and demonstrated commitment to reliable dividend growth all support a constructive long-term outlook.
Positioning at this juncture allows for capturing both current momentum and the asymmetric upside associated with Sun Life’s future strategic initiatives.
Is it the Right Time to Buy Sun Life?
In sum, Sun Life stands at the intersection of technical strength, robust fundamentals, and favourable sector dynamics. The company’s recent surge is rooted in authentic earnings growth, organic expansion across asset management and Asia, and a best-in-class capital position. While temporary overbought signals may suggest some near-term volatility, the underlying trajectory remains distinctly positive—making a case for renewed investor interest.
With a compelling valuation, an above-market dividend yield, and multiple levers for ongoing outperformance, Sun Life seems to represent an excellent opportunity at current levels for those looking to capitalize on the accelerating transformation of the financial services sector.
For investors seeking a high-quality, growth-oriented dividend stock with international reach and strong defensive attributes, Sun Life’s profile in 2025 makes it difficult to overlook. Opportunity and conviction are meeting at precisely the right moment—Sun Life Financial may be entering a promising new bullish phase within Canada’s evolving financial landscape.
How to buy Sun Life stock in Canada?
Buying shares in Sun Life Financial is a straightforward and secure process when done through a regulated online broker. Canadian investors can easily access Sun Life (SLF) stock using platforms approved by securities regulators, ensuring your funds and trades are well-protected. There are two main ways to invest: buying shares outright (spot buying), giving you full ownership and dividends, or trading Contracts for Difference (CFDs), which allows you to speculate on share price movements using leverage. Each method has distinct features and risks, which we compare in more detail further down the page.
Spot buying
A cash purchase (spot buying) means you are buying actual shares of Sun Life on the Toronto Stock Exchange (TSX: SLF) using Canadian dollars. Once purchased, you become a shareholder, with the right to receive dividends and vote at annual meetings. Most online brokers charge a fixed commission per order, typically around $5 to $10 CAD per transaction.
Example
If the Sun Life share price is $87.94 CAD (TSX, May 2025), a $1,000 CAD investment (including a $5 commission) allows you to buy approximately 11 shares. This calculation: ($1,000 - $5 commission) ÷ $87.94 ≈ 11 shares.
Gain scenario:
If the share price rises 10% to $96.73, your 11 shares would now be worth $1,064 (11 x $96.73).
Result: That’s a +$100 gross gain (excluding dividends), or +10% on your initial investment.
Trading via CFD
CFDs (Contracts for Difference) let you speculate on Sun Life share price movements without owning the underlying shares. CFDs are popular for their leverage—meaning you put up a fraction of the total position—and their flexibility (you can go long or short). You’ll pay a “spread” (the difference between buy and sell price), and if you hold positions overnight, a small daily financing fee. Note: CFDs are more suitable for experienced traders due to higher risks.
Example
You open a CFD on Sun Life with a $1,000 CAD deposit and 5:1 leverage. This gives you $5,000 exposure to SLF’s price moves.
Gain scenario:
If Sun Life’s stock rises 8%, your position gains 8% x 5 = 40%.
Result: That’s a $400 gain on your $1,000 outlay (excluding spread and overnight fees).
Final advice
Fees, available markets, and trading features can vary greatly between online brokers, so it’s always wise to compare their conditions before making your first investment. Think about your objectives: spot buying suits long-term investors seeking steady income and dividends, while CFD trading is geared toward active traders looking for leveraged exposure. To help you make the best choice, you’ll find a detailed broker comparison tool further down this page.
Compare the best brokers in Canada!Compare brokersOur 7 tips for buying Sun Life stock
| 📊 Step | 📝 Specific tip for Sun Life |
|---|---|
| Analyze the market | Review Sun Life's recent strong financial results, dividend growth, and its leadership in insurance and asset management to understand its long-term value for Canadian investors. |
| Choose the right trading platform | Select a Canadian brokerage with access to the TSX for trading in CAD, low commissions, and robust research tools for monitoring Sun Life. |
| Define your investment budget | Allocate a portion of your portfolio to Sun Life that aligns with your risk tolerance and diversification needs, leveraging its stability and steady dividend yield. |
| Choose a strategy (short or long term) | For most investors, a long-term buy-and-hold approach benefits from Sun Life’s consistent dividend growth and expanding business in Asia and wealth management. |
| Monitor news and financial results | Stay up to date with Sun Life’s quarterly earnings reports and key announcements, especially regarding dividend changes, Asian growth, or regulatory impacts. |
| Use risk management tools | Consider setting stop-loss orders or predefined investment limits, especially given recent technical signals indicating potential short-term overbought conditions. |
| Sell at the right time | Plan to take profits or rebalance if Sun Life's fundamentals change, or if the price reaches technical resistance levels and momentum slows. |
The latest news about Sun Life
Sun Life shares hit a new 52-week high, supported by robust recent price momentum and bullish technicals. The stock closed at $87.94 CAD on the TSX, reflecting a weekly gain of 1.3% and a one-month surge of 12.1%, with shares hovering near their all-time highs. Technical signals are overwhelmingly positive, with the price firmly above all key moving averages and a MACD indicating strong momentum. Although the Relative Strength Index (RSI) above 70 suggests short-term overbought conditions, this upward trend underlines strong investor confidence, buoyed by the company’s operational resilience and broad market support.
Q1 2025 earnings revealed a 19% year-over-year rise in underlying net income and double-digit EPS growth. Sun Life’s first-quarter results, released May 8, 2025, highlighted a significant 19% increase in underlying net income to $1,045 million CAD and a 21% jump in underlying EPS compared to Q1 2024. These results were supported by double-digit growth across all main business segments, notably Asset Management and Canadian Wealth. Return on equity also improved to 17.7%. Such widespread strength demonstrates effective execution of Sun Life’s multi-pronged strategy and the appeal of its product mix, enhancing its value proposition for Canadian investors.
The board approved a 5% dividend hike, lifting the quarterly payout to $0.88 CAD with a robust yield of 4.01%. Sun Life continued its tradition of steady capital returns by raising its dividend for shareholders ahead of the May 28 ex-dividend date. The company’s $3.52 CAD annualized dividend and payout ratio of 50% are underpinned by healthy cash flows, a high LICAT capital ratio of 149%, and strong underlying earnings. Consistent dividend growth appeals to income-oriented investors, reinforcing Sun Life’s status as a reliable component of Canadian dividend-focused portfolios.
Asset management and health segments reported exceptional performance, supported by Canadian leadership and digital expansion. The Asset Management division, encompassing MFS and SLC Management, posted a 19% earnings increase and continues to attract sizable inflows, while Canadian operations benefited from strong Individual Wealth and Group Retirement business. Strategic investments in digital capabilities are improving client experiences and operational efficiency within the country, enabling Sun Life to capture evolving demands among Canadian consumers and businesses.
Sun Life’s financial stability remains exemplary, with ample regulatory capital and balanced risk management practices. The company’s LICAT ratio of 149% far exceeds Canadian solvency requirements, while robust liquidity, a diversified revenue base, and prudent risk controls collectively reinforce Sun Life’s ability to withstand market volatility and regulatory changes. These features make Sun Life particularly well-positioned to navigate the complexities of the Canadian market and seize ongoing growth opportunities, supporting favourable prospects for shareholders in Canada.
FAQ
FAQ
What is the latest dividend for Sun Life stock?
Sun Life currently pays a quarterly dividend of $0.88 CAD per share, with the next payment scheduled for June 30, 2025 (ex-dividend date: May 28, 2025). This represents an annualized dividend of $3.52 CAD, reflecting a recent increase of 5%. The dividend yield is about 4%, and the company maintains a prudent payout ratio around 50%, highlighting Sun Life’s focus on sustainable, growing income for shareholders.
What is the forecast for Sun Life stock in 2025, 2026, and 2027?
Based on the latest TSX price of $87.94 CAD, a forward-looking estimate places Sun Life at $114.32 CAD by the end of 2025, $131.91 CAD at the end of 2026, and $175.88 CAD by the close of 2027. Sun Life continues to benefit from sector momentum, strong performance across segments, and growth initiatives, especially in Asia and asset management.
Should I sell my Sun Life shares?
Sun Life shares may be well-suited for long-term investors, given the company’s resilient business model, history of consistent dividend growth, and strategic expansion in global markets. The current valuation and steady earnings reinforce its status as a stable holding in the financial sector. With solid fundamentals and robust capital ratios, holding Sun Life shares could be appropriate for those seeking dividend growth and sector stability.
Are Sun Life shares eligible for Canadian tax-advantaged accounts, and how are dividends taxed?
Sun Life shares are eligible for Canadian tax-advantaged accounts such as RRSPs, TFSAs, and RESPs. Dividends received in these accounts are sheltered from immediate taxation. For non-registered accounts, Sun Life’s eligible dividends benefit from the federal dividend tax credit; Canadian residents face no withholding tax. Holding SLF in a registered plan also defers capital gains taxes until withdrawal.
What is the latest dividend for Sun Life stock?
Sun Life currently pays a quarterly dividend of $0.88 CAD per share, with the next payment scheduled for June 30, 2025 (ex-dividend date: May 28, 2025). This represents an annualized dividend of $3.52 CAD, reflecting a recent increase of 5%. The dividend yield is about 4%, and the company maintains a prudent payout ratio around 50%, highlighting Sun Life’s focus on sustainable, growing income for shareholders.
What is the forecast for Sun Life stock in 2025, 2026, and 2027?
Based on the latest TSX price of $87.94 CAD, a forward-looking estimate places Sun Life at $114.32 CAD by the end of 2025, $131.91 CAD at the end of 2026, and $175.88 CAD by the close of 2027. Sun Life continues to benefit from sector momentum, strong performance across segments, and growth initiatives, especially in Asia and asset management.
Should I sell my Sun Life shares?
Sun Life shares may be well-suited for long-term investors, given the company’s resilient business model, history of consistent dividend growth, and strategic expansion in global markets. The current valuation and steady earnings reinforce its status as a stable holding in the financial sector. With solid fundamentals and robust capital ratios, holding Sun Life shares could be appropriate for those seeking dividend growth and sector stability.
Are Sun Life shares eligible for Canadian tax-advantaged accounts, and how are dividends taxed?
Sun Life shares are eligible for Canadian tax-advantaged accounts such as RRSPs, TFSAs, and RESPs. Dividends received in these accounts are sheltered from immediate taxation. For non-registered accounts, Sun Life’s eligible dividends benefit from the federal dividend tax credit; Canadian residents face no withholding tax. Holding SLF in a registered plan also defers capital gains taxes until withdrawal.
