Want $71.21 in Monthly Passive Income? Buy 909 Shares of This TSX Stock

Look to the future, and the future is an aging population. That’s why this dividend stock is a solid buy right now for monthly income.

Amy Legate-Wolfe

Author Bio Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Social Media Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published April 17, 2023 5:00 pm EDT

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.

Retirees sip their morning coffee outside. — Source: Getty Images

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.