Few opportunities out there provide the deal that passive income stocks hold. Yet, some companies offer monthly dividends, on top of huge dividend yields. Yields that are simply not going to be around forever.
So, if you’re looking for an influx of passive income each month, as well as long-term growth, I would certainly consider Sienna Senior Living (TSX:SIA) on the TSX today.
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Why Sienna stock?
Sienna stock is a solid option for those seeking out the future of investment. There are many avenues to take in terms of future opportunities, but the aging population is a guarantee. Canada is going to need support for its aging population.
That’s why senior living is a great investment for those seeking long-term growth. It’s one of the largest owners of seniors’ housing in Canada, and the largest licensed long-term care operator in Ontario. It doesn’t just offer senior living, but also a “full continuum of care” for those with chronic conditions.
And Sienna stock is a solid long-term investment based on past performance as well. Shares are down 28% in the last year, true. Furthermore, there was a huge drop during the pandemic from long-term care homes showing the need for investment.
Now that momentum is building on the aging population trend, it’s a great time to consider this stock before an upswing.
How to create that monthly income
Sienna stock currently has a dividend yield at 8.52% as of writing. That’s a huge dividend thanks mainly to the drop in share price. Which means you can lock it up while it’s still trading down, which it won’t be forever.
So there are two options to create massive income. One is drip feeding over time, which is definitely more conservative and recommended. However, you can also bring in substantial income by taking a larger stake in the company now for more passive income at a better rate.
Let’s see what would happen then if you put $10,000 into Sienna stock on the TSX today.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | TOTAL PORTFOLIO |
| SIA | $11 | 909 | $0.94 | $854.46 | monthly | $10,000 |
You’re now bringing in $854.46 each year in annual passive income. However, that then comes to $71.21 each and every month! That cash can be used to help you through this trying year, true. But after this year when shares return to normal, you’ll have even more cash to reinvest.
In fact, should shares return to 52-week highs at $15.64, you could then turn your $10,000 into $14,216.76 at these prices! That’s a total return of $5,071.22, including dividends.
Bottom line
There are a lot of opportunities for investors out there, but make sure you’re looking at long-term options. You could invest in Sienna stock today, and hold for the next decade as baby boomers age, and see shares absolutely explode. Even if we see relatively stable growth, you’ll have brought in dividend income of $854.46 each year for life! That’s certainly something to look forward to.
