Sure Dividend

Published on March 31st, 2023 by Nikolaos Sismanis

That said, there are just 84 companies that currently offer a monthly dividend payment, which can severely limit the investor’s options. You can see all 84 monthly dividend-paying names here.

You can download our full Excel spreadsheet of all monthly dividend stocks (along with metrics that matter, like dividend yield and payout ratio) by clicking on the link below:

Click here to instantly download your free spreadsheet of all 80 monthly dividend stocks now, along with important investing metrics.

One stock that we have yet to review is Sienna Senior Living (LWSCF), a Canada-based company focusing on senior living and long-term care (LTC) services. Shares are currently offering a substantial yield of 8.7%, which is nearly 5.5 times the average yield of the S&P 500 Index.

With such a notable yield and the fact that Sienna’s dividends are paid on a monthly basis, the stock appears rather appealing for income-oriented investors who seek a regular stream of substantial payments – especially given that Sienna has never cut its dividend.

This article will evaluate the company, its business model, and its dividend to see if Sienna Senior Living could be a good candidate for purchase. While Sienna reports in CAD, all figures in this article have been converted to USD unless stated otherwise.

Business Overview

Sienna Senior Living provides senior housing and long-term care (LTC) services in Canada. The company offers a range of seniors’ living options, including independent and assisted living, memory care, long-term care, and specialized programs and services, as well as management services.

As of its latest filings, Sienna owned and operated a total of 80 properties, including 38 retirement residences, 34 LTC communities, and eight senior living residences. The company also manages only an additional 13 senior living residences. Sienna generates around $530 million in annual revenues.

Source: Investor Presentation

Although Sienna Senior Living primarily deals in real estate, its performance is not as closely linked to the real estate market as one might assume. Unlike other types of real estate properties, such as retail, commercial, or industrial, Sienna’s tenants are mainly seniors who allocate a portion of their pensions for assisted living services. This results in a more stable and durable stream of income for the company, as seniors require long-term care and are less likely to move out of their homes quickly. There is a sense of community as well, which also contributes to this concept.

Furthermore, assisted living properties like those provided by Sienna Senior Living are more critical from a socio-economic standpoint. These properties provide essential care and support to seniors who may not be able to live independently due to their health or other factors. As a result, the government is more likely to provide support to these types of properties during times of crisis.

For example, during the pandemic, the Canadian government fully funded vacancies for Sienna’s Ontario and British Columbia residents, who make up the majority of the company’s rental revenue. This government assistance helped the company weather the pandemic and continue to provide essential care to its residents while retaining robust financials.

Growth Prospects

Sienna Senior Living has identified three key growth drivers: expanding its property portfolio, increasing rental rates, and optimizing occupancy rates. In line with this strategy, Sienna is currently developing a 147-suite retirement residence as part of a campus of care project in Brantford, Ontario. Additionally, a 150-suite retirement residence in Niagara Falls is scheduled to be completed by the end of 2023. As Canada’s senior population continues to grow, Sienna is well-positioned to meet the rising demand for assisted-living properties.

With over 861,000 people aged 85 and older recorded in the 2021 census and this age group growing at a rate of 12% since 2016, Sienna enjoys a long runway of highly predictable growth in demand. In fact, by 2050, it is expected that the 85-and-older population will surpass 2.7 million people, providing Sienna with an excellent opportunity to capitalize on this growing market.

Source: Investor Presentation