In a market where investors are scrambling to find reliable monthly income, one name continues to quietly deliver: Sienna Senior Living (TSX:SIA). This under-the-radar stock might not make headlines like the big banks, but it offers something many investors crave: stability, steady growth, and a solid 5.2% dividend yield that lands in your account every single month.
So, what makes this stock worth a closer look right now? Let’s dig into the latest numbers and growth strategy to find out.
Into earnings
Sienna’s first-quarter 2025 results showed an operator that’s not just surviving the uncertain economy, it’s thriving. Total adjusted revenue rose 12.1% year-over-year to $241.8 million, fuelled by higher occupancy rates and strategic acquisitions. Retirement segment occupancy rose 260 basis points to 92.5%, while long-term care occupancy stayed rock solid at 98%. That’s impressive in any environment, but especially during a time when many real estate operators are still struggling to fill rooms.
More importantly for dividend investors, Sienna’s funds from operations are moving in the right direction. Adjusted funds from operations (AFFO) per share climbed 7.7% to $0.266, pushing the payout ratio down to 91%. That’s not dirt cheap, but it’s healthier than it was last year and suggests the dividend remains well-supported.
Right now, Sienna pays $0.078 per share monthly, or $0.936 annually. With shares trading around $18.10 at writing, that works out to a forward yield of 5.2%. For investors hunting income, and especially those building passive cash flow, this kind of dependable monthly payout can be a real game-changer. In fact, right now, a $15,000 investment could bring in $773 annually, or $64 monthly!
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| SIA | $18.22 | 823 | $0.94 | $773.62 | Monthly | $14,991.06 |
More to come
But dividends aren’t the only reason to keep an eye on Sienna. So far in 2025, the company has completed over $340 million in acquisitions, including five retirement residences and a 100% ownership stake in Nicola Lodge. These properties are expected to generate investment yields between 6.25% and 6.8%.higher than the cost of capital and accretive to cash flow. Sienna’s also expanding its footprint in high-demand areas like Ottawa and the Greater Toronto Area, where demographic tailwinds are strong.
To keep this momentum going, Sienna recently launched an at-the-market (ATM) equity program to raise up to $125 million. That’s a smart way to access capital without overleveraging, especially when paired with a debt-to-gross book value ratio that’s improved to 38.5%, down from 44.3% last year. The dividend stock is also on track to finish three development projects worth over $300 million in North Bay, Brantford, and Keswick. Once completed, these are expected to boost AFFO per share by roughly 3%.
Of course, no investment is without risk. The company’s payout ratio remains high, and rising labour and utility costs could also nibble at margins. And while the senior housing market benefits from long-term demographic trends, it’s also sensitive to regulatory changes and funding shifts in healthcare.
Bottom line
Still, Sienna’s latest numbers paint a picture of a company doing a lot of things right. It’s growing in a disciplined way, maintaining strong occupancy, and reinvesting into its platform – all while paying out a healthy monthly dividend.
For investors looking to generate monthly income without chasing riskier high-yield plays, Sienna might be a smart fit. Its 5.2% yield, strong Q1 results, and ongoing expansion suggest that income – and value – could keep flowing steadily in the months and years ahead.
