Sometimes, you don’t need to catch a great dividend stock at the beginning of its run to benefit from what comes next. Sienna Senior Living (TSX: SIA) could be a great example of a stock whose best days may still be ahead despite its impressive recent performance. This Markham-headquartered company has benefited from rising occupancy and improving operating results, while Canada’s aging population could support demand for senior housing and care for many years. That gives the company an opportunity to keep expanding cash flow while rewarding shareholders with attractive monthly dividends.
While I already own this stock, I wish I had bought Sienna earlier. That said, its long-term growth runway still gives me reason to believe that it is not too late to buy it.
In this article, I’ll explain why Sienna is one TSX dividend stock I wish I had owned earlier and why its expanding business could still give long-term investors reasons to buy today.
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Why I wish I bought Sienna sooner
In short, Sienna provides independent living, assisted living, memory care, long-term care, and other specialized senior living services across Canada. Currently, SIA stock trades at $20.42 per share with a market cap of $2.3 billion, as its shares have gained 11% over the last year and 91% over three years.
Income investors may also like that Sienna pays dividends every month. At the current share price, the stock offers an attractive 4.6% annualized dividend yield, adding a steady income stream to its already interesting long-term growth story.
Lately, the company’s share-price gains have come mainly from stronger operations and strengthening fundamentals. In the second quarter of 2026, Sienna’s average same-property retirement occupancy improved by 150 basis points year-over-year (YoY) to 94.1%. Notably, it marked the 14th consecutive quarter of YoY growth in its retirement and long-term care operations.
Similarly, the company’s revenue on a proportionate basis rose 13.6% YoY. Factors such as new acquisitions, better occupancy, rental rate increases, higher care revenue, increased long-term care funding, and stronger private accommodation revenue drove that growth.
Strong operations and cash generation
Sienna’s same-property net operating income also jumped 19.4% to $57.6 million. That figure included retroactive government funding and a workplace insurance refund. Even after excluding those items, its same-property net operating income still increased 14.2%.
Meanwhile, the company’s operating funds from operations rose 35% YoY to $39.6 million, mainly because of higher net operating income. Adjusted funds from operations climbed even faster, rising 44.9% YoY.
In addition, Sienna’s adjusted funds from operations payout ratio improved to 72.3% from 89.5% a year ago. That gives its dividend payouts a stronger financial backing than it had a year ago.
More growth could still be ahead
Earlier this month, on September 17, Sienna announced an agreement to acquire Stonemont On the Park, a 305-suite retirement residence in Ottawa. The property opened in 2024 and was roughly 99% occupied. Sienna agreed to a gross purchase price of about $170.7 million, along with a potential $10 million earnout tied to certain financial targets.
The deal is expected to close in the fourth quarter of 2026. After the completion of this transaction, Sienna will have added nearly $1.2 billion of assets through acquisitions and developments since 2025.
At the same time, the company is also working with Fiera Infrastructure through a joint venture initially targeting about $625 million of long-term care redevelopment projects.
Foolish takeaway
For 2026, Sienna is targeting retirement occupancy above 95% and more than 10% same-property retirement net operating income growth. Those targets are not guaranteed, but they show the direction management is trying to take the business.
Clearly, Sienna still gives investors several reasons to consider buying now, including stronger operations, a 4.6% dividend yield, monthly payouts, and a growing asset base.
