This 6.5 Percent Dividend King Pays Out Every Month

Besides Sienna’s focus on new projects, Canada’s demographics also support its growth prospects, making it a reliable monthly dividend stock to buy now.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Beginning investors seeking consistent income often look to dividend stocks that offer high yields. While high yields might sound appealing, they can also be risky and unreliable, especially if the company is unable to sustain its earnings and cash flow.

That’s why savvy income investors prefer dividend stocks that have a track record of increasing earnings over time and strong balance sheets to sustain their dividend payouts. One such Canadian dividend stock that offers both attractive yield and monthly payments is Sienna Senior Living (TSX:SIA).

A reliable Canadian monthly dividend stock

Sienna Senior Living has been a consistent provider of monthly dividends since its public listing in March 2010.

It hasn’t achieved “Dividend King” status, a label usually used for companies increasing dividends for over 50 years. However, it still stands out as a reliable Canadian monthly dividend stock for those looking to earn stable dividend income, making this TSX stock a “king” in its own unique way. Now, let me quickly highlight key fundamental factors that make Sienna Senior Living a really attractive dividend stock for income investors.

Sienna Senior Living stock

This Markham-headquartered company primarily focuses on providing seniors’ living and care services across Canada. Sienna currently operates 92 high-quality assets, including 42 long-term-care (LTC) communities, 39 retirement residences, and 11 managed residences. Last year, it generated most of its total revenues from the LTC segment.

Created with Highcharts 11.4.3Sienna Senior Living PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

It has a market cap of around $1 billion as its stock trades at $14.42 per share with nearly 26% year-to-date gains. At this market price, SIA stock offers roughly 6.5% annualized dividend yield and distributes its dividend payouts on a monthly basis.

Strong financials and solid fundamental outlook

In the first quarter of 2024, Sienna reported a solid 75.9% YoY (year-over-year) increase in same-property net operating income to $63.9 million, including $45.7 million in contributions from the LTC segment. The company’s total adjusted quarterly revenue rose by 19.9% YoY to $239.4 million with the help of annual rate increases and higher occupancy.

During the quarter, it also received government funding of $27 million, helping it offset pandemic-related and inflationary cost pressures from previous years. To add optimism, Sienna’s LTC segment average total occupancy improved to 97.5% at the end of March 2024 from 96.8% a year ago.

Capitalizing on the recent funding environment improvement, Sienna is advancing the redevelopment of its LTC home in Keswick, Ontario. The project, slated to begin construction in the fourth quarter, involves transforming the existing 60-bed facility into a state-of-the-art 160-bed home. This redevelopment project, along with the North Bay and Brantford projects, is likely to yield an estimated 8% development return, brightening Sienna’s long-term financial growth prospects.

Foolish takeaway

In addition to these fundamental factors, Canada’s demographics also support Sienna’s growth prospects, with the population in the 85-plus age group expected to grow at a fast pace. As the population ages, the demand for LTC and retirement living services will likely increase significantly. That’s why I expect Sienna to continue rewarding its investors with handsome returns through a combination of capital appreciation and monthly dividend payments in the long run.

Should you invest $1,000 in Sienna Senior Living Inc. right now?

Before you buy stock in Sienna Senior Living Inc., consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Sienna Senior Living Inc. wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $20,697.16!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 29 percentage points since 2013*.

See the Top Stocks * Returns as of 3/20/25

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

Confidently Navigate Market Volatility: Claim Your Free Report!

Feeling uneasy about the ups and downs of the stock market lately? You’re not alone. At The Motley Fool Canada, we get it — and we’re here to help. We’ve crafted an essential guide designed to help you through these uncertain times: "5-Step Checklist: How to Prepare Your Portfolio for Volatility."

Don't miss out on this opportunity for peace of mind. Just click below to learn how to receive your complimentary report today!

Get Our Free Report Today

More on Dividend Stocks

Confused person shrugging
Dividend Stocks

Where to Invest $2,500 in the TSX Today

These TSX stocks offer attractive dividends and a shot at decent upside on a rebound.

Read more »

Pile of Canadian dollar bills in various denominations
Dividend Stocks

Invest $25,000 in These Dividend Stocks for $1,956.66 in Annual Passive Income

Dividends stocks can make a huge difference, even if shares don't move an inch. And these might be the best.

Read more »

Pile of Canadian dollar bills in various denominations
Dividend Stocks

Got $5,000? 5 Income Stocks to Buy and Hold Forever

These income stocks have a solid dividend-payout history that can help you earn stress-free passive income.

Read more »

grow money, wealth build
Dividend Stocks

Why I’d Invest $10,000 in This Undervalued Dividend-Growth Stock for Decades of Income

This undervalued dividend stock offers a high yield of over 8% and can help you earn more than $200 in…

Read more »

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Dividend Stocks

Here’s Exactly How a $20,000 TFSA Could Potentially Grow to $200,000

Index funds like the iShares S&P/TSX Capped Composite Index (TSX:XIC) are tax free in a TFSA.

Read more »

Dividend Stocks

How I’d Invest $6,000 in Canadian Real Estate Stocks to Build Lasting Wealth

Canadian REITs on sale! See how grocery-anchored retail properties offering 9% yields could turn $6,000 into lasting wealth despite US…

Read more »

rain rolls off a protective umbrella in a rainstorm
Dividend Stocks

Economic Headwinds: Should You Still Consider Buying the Dip?

A market dip might seem like a bumpy road, but it can be far smoother in the future with the…

Read more »

e-commerce shopping getting a package
Dividend Stocks

Consumer Spending Plays Amidst the Current Market Dip

Consumption may go down in market dips, but certain consumer stocks are certainly better off than others.

Read more »