Key Highlights

  • Sagicor Financial Company Ltd. (TSX:SFC) offers a Dividend Yield of 4.88%.
  • The quarterly dividend rose 11% in March 2026 to US 7.5 cents per share, or US 30 cents annualized.
  • Second-quarter 2026 core Earnings to shareholders were US$34.2 million, up from US$24.9 million in the first quarter.
  • Shareholders’ Equity rose 6% in the quarter to US$1,039.3 million, and the financial Leverage Ratio was 27.4%.
  • The group LICAT ratio was 136% at year-end 2025, signalling solid capital.

An Insurer Spanning Canada, the U.S. and the Caribbean

Sagicor Financial Company Ltd. (TSX:SFC) is a financial services provider founded in 1840 and headquartered in Barbados, with operations in Canada, the United States and the Caribbean. It offers life and health insurance, annuities, pensions and banking services, and it expanded in Canada through the Acquisition of ivari.

At a dividend yield of 4.88%, TSX:SFC offers income from an insurer whose results are reported in U.S. dollars, with dividends declared in U.S. cents.

Dividend Growth: Three Straight Raises

In March 2026, alongside its full-year 2025 results, Sagicor raised its quarterly dividend 11% to US 7.5 cents per share, or US 30 cents annualized, from US 6.75 cents. Management noted it was the third consecutive fourth-quarter report with a dividend increase. In 2024 the quarterly dividend was US 6 cents, so the payout has risen 25% in two years.

The board declared US 7.5 cents again in August, payable September 16, 2026 to shareholders of record on August 26.

Latest Results

Second-quarter 2026 core earnings to shareholders were US$34.2 million, compared with US$24.9 million in the first quarter and US$46.0 million a year earlier. Year to date, core earnings were US$59.1 million versus US$75.7 million. Management said core earnings returned to target levels as insurance experience was broadly in line with expectations, while Net Income was well above core earnings because market Volatility on asset prices worked in the company’s favour.

Sagicor Canada contributed US$26.5 million of core earnings in the quarter, up 8%. Shareholders’ equity rose 6% to US$1,039.3 million, and net contractual service Margin to shareholders was US$1,106.5 million, a store of future profit under insurance accounting.

Segment trends were mixed but improving at the corporate level. The head office segment loss narrowed to US$23.4 million in the second quarter from US$44.4 million a year earlier. Looking back, third-quarter 2025 revenues were US$974.1 million with net premium of US$648.8 million. Sagicor listed on the TSX in December 2018, employs about 5,600 people, and raised its dividend 12.5% in 2024 before the 2026 increase, showing a consistent pattern of rewarding shareholders as earnings strengthen.

Full-Year 2025 Momentum

2025 was a strong year: core earnings rose 57% and Return on Equity reached 14.2%. In the third quarter of 2025, core earnings were US$35.0 million, up 45%, with net income of US$81.0 million and record Book Value per share. Assets under management reached US$24.6 billion.

The Jamaican business, affected by severe weather in 2025, is expected to recover strongly in 2026 and beyond as rebuilding activity supports the economy.

Payout Ratio and Capital Coverage

With about 135.9 million shares outstanding, the US 30 cent annual dividend costs roughly US$41 million a year. Annualizing first-half core earnings of US$59.1 million gives about US$118 million, implying a payout of roughly 35% of core earnings. That is conservative for an insurer.

Capital supports the payout. The group LICAT ratio was 136% at year-end 2025 and the financial leverage ratio was 27.4% at mid-2026. Sagicor also bought back 496,340 shares in the second quarter for US$2.9 million under its normal course issuer bid.

Risks Dividend Investors Should Watch

Insurance results can be volatile, and core earnings fell year over year in the first half of 2026. Market movements affect net income, and regulatory capital rules can change. Catastrophic weather in the Caribbean is a recurring risk, and currency movements between the U.S. dollar and Canadian dollar affect returns for Canadian investors.

Trading Liquidity is modest compared with large Canadian insurers.

Is the Sagicor Dividend Sustainable?

The US 30 cent annual dividend looks sustainable, covered roughly three times by core earnings, backed by solid capital ratios and supported by a record of three consecutive increases.

Investors should watch core earnings, LICAT, book value per share and the Jamaica recovery as TSX:SFC continues to grow.