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Highlights
- Canadian financial companies like Sun Life Financial Inc (TSX:SLF), Manulife Financial Corp (TSX:MFC) and iA Financial Corporation Inc (TSX:IAG) have already increased their dividend payouts.
- On Monday, November 8, the S&P/TSX Capped Financial Index rose by 0.229 per cent, nothing a year-to-date (YTD) return of 29.912 per cent.
- A stock mentioned here has increased its dividend payout by 29 per cent.
Many Canadian investors breathed a sigh of relief last week as the Office of the Superintendent of Financial Institutions (OSFI) erased the pandemic-era prohibition on capital distribution for government-led financial organizations.
In its wake, companies like Sun Life Financial Inc (TSX:SLF), Manulife Financial Corp (TSX:MFC) and iA Financial Corporation Inc (TSX:IAG) have already increased their dividend payouts.
While the S&P/TSX Capped Financial Index rose by 0.229 per cent on Monday, November 8, marking a year-to-date (YTD) return of 29.912 per cent, investors are showing an increased interest in financial stocks.
Also read: 5 Canadian bank stocks to buy now as dividend hikes return
That said, let us discuss three TSX-listed financial companies that recently hiked their dividends.
Image source: © 2021 Kalkine Media Inc
1. Sun Life Financial Inc (TSX:SLF)
International financial services company Sun Life Financial Corp offers insurance and asset management solutions to its clients. Sun Life is considered one of the big three life insurance corporations in Canada.
On November 8, the Toronto-headquartered company announced the addition of a supplementary dividend of 11-cent per share to the earlier declared payout of C$ 0.55 per share scheduled for December 31, 2021.
Sun Life shareholders are now set to obtain a total of C$ 0.66 per share as a quarterly dividend, which is a 20 per cent growth from the previously announced dividend.
Following the dividend surge, its stock hit a day high of C$ 71.56 on November 8. At market close, its stock price sat at C$ 71.51 apiece, up by 1.131 per cent.
SLF stock clocked its one-year high of C$ 71.73 apiece on Wednesday, November 3, after the company reported its Q3 FY2021 results, including a year-over-year (YoY) surge of 36 per cent in the consolidated reported net income.
Its stock has climbed by almost 17 per cent in the past nine months. Further, on a year-to-date (YTD) basis, it gained more than 26 per cent.
The company held a return on equity (ROE) of 15.74 per cent, while its dividend yield stood at 3.076 per cent.
2. Manulife Financial Corp (TSX:MFC)
On Friday, November 5, Canadian life insurer and wealth manager Manulife Financial Corporation announced the addition of five cents per share to its quarterly dividend payable on and after December 20.
Manulife investors are now set to receive C$ 0.33 per share as quarterly dividend, which is an 18 per cent hike from its previous dividend of C$ 0.28.
The life insurance giant saw its stock wrap up trade at C$ 25 apiece on November 8, up by 2.585 per cent. Its stock price has soared by nearly 33 per cent in the past year, while it held a YTD return of more than 10 per cent.
On Tuesday, November 9, Manulife posted an ROE of 13.56 per cent and held a dividend yield of 4.48 per cent.
Also read: goeasy posts record Q3 results. Is GSY the next big fintech stock?
3. iA Financial Corporation Inc (TSX:IAG)
Canadian financial service provider iA Financial Corporation Inc, on November 8, declared an additional dividend of C$ 0.14 per share, scheduled for December 15.
IAG shareholders are now set to receive C$ 0.625 per share as quarterly dividend, which is an increase of 29 per cent from its previous payout of C$ 0.485.
Image source: © 2021 Kalkine Media Inc
The life and health insurance provider saw its stock pack up trade at C$ 74.28 apiece on November 8, up by nearly 20 per cent in the last nine months.
It delivered a YoY return of roughly 45 per cent, while its YTD gain stood at almost 35 per cent.
iA Financial held an ROE of 13.09 per cent, as of November 9. In addition, its dividend yield was 2.612 per cent.
Also read: Definity Financial Corp IPO: How to buy DFY stock & at what price?
Bottom line
The Canadian financial sector is expected to gain momentum in the future in the wake of the recent development on dividend hikes and share buybacks, as it could attract investors who look for increased dividend income.
However, investors should note the fundamental and financial picture of a company before investing to evaluate its true strength and future return capabilities.
