This 4.4% Dividend Giant Could Be an Ultimate Retirement Ally

A dividend giant can be a powerful retirement ally. These deliver steady, predictable income that doesn’t depend on timing the market or chasing risky growth stocks. Companies with long histories of raising dividends often have durable business models, strong cash flow, and the resilience to weather economic downturns. It’s exactly what retirees need when they rely on their investments for monthly income. Over time, those rising payouts help offset inflation and turn a single investment into a growing income stream you can count on, year after year. So, let’s look at why Sun Life Financial (TSX:SLF) is a dividend stock to consider.

About SLF

Sun Life is one of Canada’s leading diversified insurance and financial services firms. It provides a broad range of services, including life insurance, health and disability coverage, group benefits, as well as wealth management, asset management, and retirement/investment products. Its global footprint stretches beyond Canada as well, as Sun Life operates in the United States, Asia, and other international markets. This offers diversification that helps smooth out the ups and downs of any single economy.

Because of this mix of stable, recurring insurance revenues plus asset-management income from investments and wealth products, Sun Life is structured to generate cash flow in many different economic conditions. Altogether, it offers a defensive, durable business model.

Into earnings

In its third-quarter (Q3) 2025 results, Sun Life reported underlying net income of $1.1 billion, down year over year by 18%, and delivered a return on equity of 18.3%. That said, there was certainly growth, with its asset management gross flows and wealth sales increasing to $62.1 billion from $41.9 billion the year before.

The dividend stock also raised its quarterly dividend from $0.88 to $0.92 per share, a clear signal of confidence in its financial strength and cash flow stability. The results were driven by strong performance in its asset management & wealth division and its individual-protection business, even as group health & protection saw some softness. Overall, Sun Life grew its assets under management (AUM) and demonstrated resilience amid market fluctuations, suggesting that its diversified operations remain healthy.

Looking ahead

Sun Life’s global presence, especially in fast-growing Asian markets with rising middle-class demand for insurance and investment products, offers long-term growth potential beyond Canada’s demographic constraints. As long as Sun Life maintains prudent reserves, disciplined underwriting, and diversified revenue, it can continue funding its dividends and potentially raise them over time. That combination of yield, diversification, and global growth makes SLF a compelling candidate for a retirement-focused portfolio.

Furthermore, because its income streams come from diversified sources such as insurance premiums, investment returns, wealth and asset management fees, and global operations, Sun Life’s cash flow is more stable than dividend stocks tied to commodity cycles or economic booms. That stability makes it particularly suitable for investors seeking income that endures through economic cycles, retirement transitions, or market downturns.

Bottom line

So, why is this a long-term retirement ally? Sun Life pays a quarterly dividend that currently yields around 4.4%, notably higher than many broader-market Canadian equities. Right now, here’s what $7,000 could bring in right away through dividends alone.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDANNUAL TOTAL PAYOUTFREQUENCYTOTAL INVESTMENTSLF$80.5786$3.68$316.48Quarterly$6,929.02

What’s more, over the past several years, the dividend stock has increased its dividend consistently — most recently, during this last earnings report. This shows a commitment to returning cash to shareholders. So, if you’re looking for that ally in retirement, SLF is one dividend stock to consider.

The post This 4.4% Dividend Giant Could Be an Ultimate Retirement Ally appeared first on The Motley Fool Canada.

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More reading

• 2 Dividend Stocks to Buy for Steady Passive Income
• This Finance Stock Could Be the Cornerstone of Your RRSP
• My Top 5 Canadian Stock Picks for New Investors

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.