A monthly dividend stock can be ideal in retirement. It provides consistent, predictable income that aligns perfectly with real-life expenses like bills, groceries, and travel. But here’s the thing, it doesn’t have to provide a high yield to offer amazing returns. Beyond convenience, reinvesting those monthly dividends can accelerate compounding for investors who don’t need the income right away. This helps preserve and even grow wealth over time. It’s a practical, reliable way to turn long-term investments into a steady stream of financial freedom. So let’s look at why this dividend stock belongs on your watchlist on the TSX today.
EXE
Extendicare (TSX:EXE) is one of those quietly dependable dividend stocks that pays every month like clockwork. As one of Canada’s largest operators of long-term care homes and retirement living facilities, Extendicare provides a service that’s not only essential but becoming more in demand every year. The country’s aging population ensures that the need for quality senior care will keep rising for decades. This creates a steady stream of cash flow that supports the company’s reliable monthly dividends and makes it a compelling long-term investment.
Extendicare operates a network of over 100 long-term care homes across Canada and offers home healthcare and management services through its ParaMed division. These are steady, need-based operations driven by demographic realities rather than economic swings. As more Canadians enter their senior years, demand for Extendicare’s facilities and services will continue to grow. That makes its revenue base remarkably predictable, a key ingredient for sustainable dividend income.
Another reason Extendicare looks solid for the long term is its asset-light management business. Through its contract management and home care operations, the dividend stock earns stable fees without taking on the full capital costs of owning every facility. This model gives it scalability and flexibility. Furthermore, the dividend stock has been steadily modernizing its properties and investing in new care homes that meet evolving government standards, which should improve margins and support future cash flow growth.
Numbers don’t lie
The company’s dividend performance reflects that consistency. Extendicare pays a dividend of $0.50 per share, translating to a yield of roughly 2.7%. It has been making those payments for years without interruption. That resilience speaks to both its financial stability and management’s commitment to returning cash to shareholders. The payout is well-supported by recurring operating cash flow from its long-term care and home healthcare contracts, which are largely government-funded.
Recent financial results highlight how Extendicare’s recovery and growth strategy are taking hold. In its third quarter of 2025, the company reported revenue of $440.3 million, with adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rising to $50.8 million. Growth came from improved occupancy rates, higher funding from provincial governments, and cost management efforts that are finally offsetting the inflationary pressures that weighed on the sector in recent years.
Beyond its income reliability, EXE offers long-term investors a defensive play with growth potential. The senior care industry is protected by high barriers to entry with heavy regulation, limited land availability, and strict licensing requirements. These make it difficult for new competitors to enter the space. That structural advantage means Extendicare can maintain market share and pricing power while gradually growing through government partnerships and redevelopment projects.
Bottom line
In short, Extendicare is the kind of dividend stock that keeps paying, month after month, while investors sleep easy. Its steady government-backed revenue, essential service model, and disciplined financial management make its dividend as reliable as they come. Today, here’s what even $7,000 could bring in from an investment.
With the aging population tailwind only getting stronger, Extendicare is positioned to keep generating stable income and gradual growth for decades. For retirees or long-term income investors, EXE isn’t just a dividend payer. It’s a dividend stock that quietly turns demographic certainty into dependable monthly cash flow.
