MENU

2 Dividend Payers That Will Continue to Grow Regardless of Market Uncertainty

With most companies’ stock prices above fundamental values, investors are left wondering where they should invest their hard-earned money. Here at Fool, we like to take a long-term view and invest in companies within industries that will be around for years to come and can continue to grow. Fortunately for investors, the senior-housing sector is an industry that meets both of these criteria.

With an aging demographic and an increase in life expectancy, the demand for senior housing will inevitably continue to rise. Therefore, investors should be looking for exposure to this sector. Chartwell Retirement Residences (TSX:CSH.UN) and Sienna Senior Living Inc. (TSX:SIA) are two senior-housing providers in Canada that are poised to give investors reliable returns for years to come.

Chartwell Retirement Residences

Chartwell is the largest owner and operator of senior residences in Canada. One of Chartwell’s biggest advantages is that over 75% of its units are for independent senior living. These are higher-quality units with an experience comparable to a luxury hotel. In addition, the tenants of these types of units tend to be in better health and have longer stays, resulting in stronger cash flows for the company.

From a financial perspective, Chartwell has been able to increase its funds from operations for three consecutive years while offering investors a yield of 3.69%. With a beta of 0.26, investors can weather the storm of market correction with this industry leader.

Sienna Senior Living Inc.

Sienna is the largest long-term-care provider in Ontario with over 35 long-term-care homes and 5,733 beds. In addition, the company has 11 retirement residences in British Columbia, giving it a presence in to two of the most heavily populated provinces in Canada.

With strong occupancy rates of 94.5% in its retirement residences and 98.8% in its long-term-care beds, Sienna should continue to grow and sustain its current yield of 5.25%. More importantly, the stock boosts a beta of 0.25, which means it should be impacted minimally if the stock market falls.

Foolish bottom line

Both of these companies are leaders in the senior-housing sector, and will continue to benefit from an aging demographic. Investors should be looking to take advantage of these sustainable dividends. Regardless of swings in the market, investors can rely on these two stocks for reliable returns for years to come.

Six "pro" strategies for today's highly uncertain market

Motley Fool Canada's $250,000-real-money-portfolio service, Motley Fool Pro, is currently closed to new members. But lead advisor Jim Gilles is doing something special for investors who are worried about the market and where it will head in 2017.

He's revealing the six strategies he uses in Pro to help members guardrail their portfolios and make money in up, down, and sideways markets.

For a limited time you can download this "Pro 2017 Survival Guide" free of charge by simply clicking here.

Fool contributor Colin Beck has no position in any stocks mentioned.

NEW! This Stock Could Be Like Buying Amazon In 1997

For only the 5th time in over 14 years, Motley Fool co-founder David Gardner just issued a Buy Recommendation on this recent Canadian IPO.

Stock Advisor Canada’s Chief Investment Adviser, Iain Butler, also recommended this company back in March – and it’s already up a whopping 57%!

Enter your email address below to find out how you can claim your copy of this brand new report, “Breakthrough IPO Receives Rare Endorsement.”

I consent to receiving information from The Motley Fool via email, direct mail, and occasional special offer phone calls. I understand I can unsubscribe from these updates at any time. Please read the Privacy Statement and Terms of Service for more information.