Sun Life Financial shares fell 10% after its third-quarter report showed US$26.9 billion of net outflows at its US fund manager MFS, against US$0.9 billion a year earlier. National Bank cut the stock to Sector Perform, and TD cut it to Hold. Underlying earnings per share rose 10% to C$2.05, and the dividend rose 4%. Reported net income fell 29%, mostly because of interest rates, deal costs and a C$176 million gain in last year's quarter. Chief executive officer Kevin Strain said US retail investors continue to favour passive strategies. MFS earns about a quarter of Sun Life's underlying net income. A rise in US disability claims is another worry. Strain called it an industry trend.

Sun Life Financial reported third-quarter underlying net income of $1,146 million, up $99 million or 9% from a year earlier. Underlying earnings per share rose 10% to $2.05. Reported net income fell $321 million, or 29%, to $785 million. Reported earnings per share dropped 29% to $1.40. Underlying return on equity was 19.0%, against 13.0% reported. Assets under management grew 3% to $1,676 billion. The company raised its common share dividend from $0.96 to $1.00. Its LICAT ratio stood at 142%. "Sunlife delivered a solid third quarter, with growth across Canada, Asia, US stop loss, and GreenOak," said chief executive officer Kevin Strain.

Three Canadian dividend stocks yielding more than 3% stand out as inflation worries return, according to Simply Wall St. The Federal Reserve's October forecast flagged stubborn price pressures and the risk of higher rates. Sun Life Financial (TSX:SLF), valued at CA$63.1b, earns most of its revenue in Canada (CA$15.7b). Its Asia individual insurance sales reached $875 million in the quarter. Manulife Financial (TSX:MFC), valued at CA$105.4b, saw Asia core earnings and Asia APE sales both grow 21%. Bank of Nova Scotia, valued at CA$160.5b, draws most revenue from Canadian Banking (CA$11.9b) and International Banking (CA$9.6b). Its return on equity in Pacific Alliance markets tops 16%.