The 5.5% Dividend Stock Set to Dominate the TSX

If there’s one area of the market due for immense growth in Canada, it’s this industry set to explode.

| More on:
Retirees sip their morning coffee outside.

Source: Getty Images

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

If there’s one area of the market that’s set to dominate, it’s not tech. No, not crypto. Not even renewable energy! It has to be healthcare. Sienna Senior Living (TSX:SIA) is poised to take over the TSX in the coming years, driven by the growing demand for healthcare and senior living services. With an aging population and the increasing need for long-term care and retirement residences, Sienna is well-positioned to benefit from this expanding market. The dividend stock’s focus on providing essential services in senior care, combined with strategic acquisitions and solid management, makes it a compelling choice for dividend investors.

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

Into earnings

The dividend stock’s most recent earnings report showed revenue of $210.5 million. Although the earnings per share (EPS) of $0.08 missed the analyst estimate of $0.31, the long-term outlook for Sienna remains strong. It continues to expand its presence in senior living facilities. This consistent revenue growth, despite the earnings miss, reflects the stability of its core business operations​.

Sienna’s dividend history is another reason why it stands out. With a forward annual dividend yield of around 5.5%, Sienna offers an attractive payout for income-focused investors. The dividend stock has a strong track record of distributing monthly dividends. And its commitment to maintaining this yield makes it a solid income stock. The payout ratio is quite high, reflecting a 240% payout based on earnings. Yet this is not uncommon in the healthcare real estate sector, where steady cash flows from long-term care properties are prioritized​.

The company has been making headlines with its strategic expansions, including acquisitions of private-pay retirement residences. These moves are part of Sienna’s broader strategy to strengthen its market position, plus cater to the increasing demand for high-quality senior care services. This acquisition-driven growth model has enabled Sienna to expand its footprint across key regions in Canada​.

More growth to come

Management plays a crucial role in guiding Sienna’s growth. Under the leadership of President and CEO Nitin Jain, who brings extensive experience in healthcare and finance, Sienna has demonstrated resilience and a focus on long-term profitability. The dividend stock’s strong leadership ensures that it remains well-positioned to navigate challenges in the sector while capitalizing on opportunities for growth​.

Looking ahead, the future for Sienna is bright. The aging population in Canada is expected to drive sustained demand for senior living services. As one of the country’s largest providers of long-term care and retirement residences, Sienna is in a unique position to capture a significant portion of this growing market. The dividend stock’s focus on quality care and strategic acquisitions further solidifies its growth potential​.

Bottom line

All considered, Sienna Senior Living is a stock to watch on the TSX, particularly for those seeking high-yield dividend income in a growing sector. It offers steady revenue, a strong dividend history, a capable management team, and the expansion of its senior care facilities. Therefore, Sienna is set to thrive in the healthcare and senior living space over the next few years. For investors looking to capitalize on the long-term trends of an aging population, Sienna offers both income and growth potential.

Should you invest $1,000 in Adentra right now?

Before you buy stock in Adentra, 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 Adentra 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.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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

Dividend Stocks

3 Canadian REIT Stocks to Buy and Hold for the Next Quarter-Century

These three Canadian REITs trade cheaply and are highly reliable, making them some of the best stocks you can buy…

Read more »

A train passes Morant's curve in Banff National Park in the Canadian Rockies.
Dividend Stocks

1 Practically Perfect Canadian Stock Down 24% to Buy Now and Hold for Life!

CNR stock is a top Canadian stock for investors, especially with shares down on the TSX today.

Read more »

Canada national flag waving in wind on clear day
Dividend Stocks

The Best Canadian Stocks to Buy Right Away With $30,000

If you have $30,000 you're willing to invest, these are some of the first Canadian stocks to consider on your…

Read more »

rail train
Dividend Stocks

What to Know About Canadian Pacific Railway Stock for 2025

CP stock has now gone through a major merger, so what do investors have to look forward to?

Read more »

ways to boost income
Dividend Stocks

Top Canadian Value Stocks I’d Buy for Dividend Growth and Appreciation

If you are looking for income and capital appreciation, here are three Canadian value stocks for a great total return…

Read more »

coins jump into piggy bank
Dividend Stocks

The Smartest Canadian Stock to Buy With $2,000 Right Now

The company’s powerful combination of growth, income, and value, positions it well to deliver solid returns, making it a smart…

Read more »

Transparent umbrella under heavy rain against water drops splash background. Rainy weather concept.
Dividend Stocks

This 10.6 Percent Dividend Stock Pays Cash Every Single Month

Are you looking to invest for a rainy day? This 10.6% dividend stock pays cash every month, irrespective of the…

Read more »

A worker gives a business presentation.
Dividend Stocks

Market Dip: Opportunity or Risk This April?

This market dip might have investors worried, but should they be excited instead?

Read more »