Most dividend stocks are content to pay quarterly. Some cut their payouts when things get tough. But one TSX stock has quietly kept on paying month after month, no matter what. That stock is Extendicare (TSX: EXE), and it just raised its dividend again.
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Into earnings
As of March 2025, the dividend stock boosted its monthly dividend by 5%, bringing it to $0.042 per share. At a share price of about $12.50, that gives investors a 4% annual yield paid monthly. It’s not just the reliability that’s appealing; it’s the fact that Extendicare is finding ways to grow in one of the most challenging sectors: long-term care and home health.
In its latest earnings report for the first quarter of 2025, Extendicare delivered a 42.7% increase in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), climbing to $29 million. That’s not the kind of jump you usually see in a sleepy dividend stock. But then again, Extendicare hasn’t exactly been sitting still.
Revenue came in at $374.7 million, up from $367.1 million a year earlier. But the more important figure is what it would have been without the distortions of past-period accounting: a 5.8% jump to $363.7 million. The dividend stock is making more money across all its business segments of long-term care, home health care, and managed services.
More to come
Let’s pause there. Long-term care might sound like a slow-growth, highly regulated corner of the economy, and it is. But Extendicare has found ways to modernize. It just opened a brand-new 256-bed home in Stittsville, replacing an outdated Class C facility. It also sold off three other development projects to its Axium joint venture for $56.3 million, locking in an after-tax gain of $11.1 million. The playbook here is smart. Recycle capital from old or non-core assets, and reinvest in modern care centres and growth opportunities.
Plus, there’s more coming. Extendicare expects to close the acquisition of nine long-term care homes from Revera later this year, adding to its redevelopment pipeline. These aren’t vanity purchases, but part of a long-term shift toward better infrastructure, improved care, and higher operating margins.
The dividend
Here’s where it gets even more interesting for income investors. Extendicare reported adjusted funds from operations (AFFO) of $0.235 per share, up from $0.210. That means the new dividend of $0.042 monthly, or $0.504 annually, is well-covered. CEO Dr. Michael Guerriere summed it up best, stating, “Q1 2025 represents another quarter of strong results sustained by growth and positive operating performance across all our business segments.”
What Extendicare is doing may not be flashy, but it’s working. In a world where many dividend stocks are cutting back or hoarding cash, this dividend stock is quietly acquiring, modernizing, and expanding, without overextending. Meanwhile, you could put $10,000 towards this dividend stock and look forward to $400 each year, and $33 each month!
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| EXE | $12.50 | 800 | $0.50 | $400.00 | Monthly | $10,000.00 |
Bottom line
So, yes, this monthly dividend payer may not grab headlines, but it doesn’t need to. It just raised its dividend, posted strong growth, and set itself up for even more expansion in the back half of the year. For investors looking for income they can count on, and a business that knows how to evolve, Extendicare remains a rare gem on the TSX.
