Sun Life Financial Inc. has announced the dividend rates for its Class A Non-Cumulative Rate Reset Preferred Shares Series 8R and Class A Non-Cumulative Floating Rate Preferred Shares Series 9QR.
For the Series 8R Shares that remain outstanding after June 30, 2025, holders will receive non-cumulative preferential cash dividends on a quarterly basis. These dividends are subject to declaration by Sun Life's Board of Directors and the Insurance Companies Act (Canada). The rate for the five-year period from June 30, 2025, to June 30, 2030, will be set at 4.230% per annum or $0.264375 per share per quarter. This rate is based on the Government of Canada Yield plus an additional margin of 1.41%.
Similarly, holders of Series 9QR Shares outstanding after June 30, 2025, will also receive floating rate non-cumulative preferential cash dividends quarterly. These are based on a dividend rate equal to the T-Bill Rate plus a margin of 1.41%, with certain adjustments according to the terms outlined for these shares. For the period from June 30 to September 30, 2025, this equates to an annualized rate of approximately 4.054% or $0.255458 per share.
Shareholders wishing to convert their shares must contact their broker or nominee by June 16, at which point conversion rights can be exercised.
It is noted that both series of shares have not been registered under the United States Securities Act and cannot be offered or sold in the U.S., except under specific exceptions.
Sun Life is an international financial services organization operating in various markets globally and manages assets totaling $1.55 trillion as of March this year.