(Toronto) Sun Life Financial announced an increase in its dividend on Monday, after a federal regulator last week lifted a temporary suspension it imposed on financial institutions at the start of the COVID-19 pandemic.
The insurer announced the payment of an additional dividend of 11 cents per share, which will be added to the quarterly dividend of 55 cents per share announced on November 3.
By combining the two dividends, Sun Life shareholders will receive a total dividend of 66 cents per share, which is a 20% increase from the previous quarterly payment.
The company said it remains committed to delivering a target dividend payout ratio of 40% to 50% as part of its medium-term financial goals.
The Office of the Superintendent of Financial Institutions (OSFI) lifted COVID-19 restrictions last Thursday, indicating that banks and insurers were once again free to raise dividends, resume share buybacks and increase the remuneration of their leaders.
Manulife Financial was the first insurer to increase its dividend following OSFI’s announcement. Its quarterly payment to shareholders was increased by 18%.