Printed on April ninth, 2025 by Felix Martinez
Buyers looking for regular and dependable money flows can profit from corporations that provide month-to-month dividend funds. These corporations present a extra frequent supply of revenue in contrast to people who distribute dividends quarterly or yearly. By selecting such corporations, buyers can guarantee a constant stream of revenue that meets their monetary wants frequently.
That mentioned, simply 76 corporations at present supply month-to-month dividend funds, which might severely restrict an investor’s choices. You may see all 76 month-to-month dividend-paying names right here.
You may obtain our full Excel spreadsheet of all month-to-month dividend shares (together with metrics that matter, like dividend yield and payout ratio) by clicking on the hyperlink under:
One inventory we’ve got but to evaluate is Sienna Senior Dwelling (LWSCF), a Canada-based firm targeted on senior dwelling and long-term care (LTC) providers. Shares at present supply a considerable yield of 5.7%, which is about 4 occasions the typical yield of the S&P 500 Index.
With such a notable yield and the truth that Sienna’s dividends are paid month-to-month, the inventory seems fairly interesting for income-oriented buyers who search an everyday stream of considerable funds—particularly on condition that Sienna has by no means reduce its dividend.
This text will consider the corporate, its enterprise mannequin, and its dividend to see if Sienna Senior Dwelling might be a superb candidate for buy. Whereas Sienna stories in CAD, all figures on this article have been transformed to USD until acknowledged in any other case.
Enterprise Overview
Sienna Senior Dwelling supplies senior housing and long-term care (LTC) providers in Canada. The corporate provides a variety of senior dwelling choices, together with unbiased and assisted dwelling, reminiscence care, long-term care, specialised applications and providers, and administration providers.
As of its newest filings, Sienna owned and operated a complete of 94 properties, together with 40 retirement residences, 42 LTC communities, and eight senior dwelling residences. The corporate additionally manages solely a further 12 senior dwelling residences. Sienna generates round $621 million in annual revenues.
Supply: Investor Presentation
Though Sienna Senior Dwelling primarily offers in actual property, its efficiency isn’t as intently linked to the true property market as one would possibly assume. Not like different varieties of actual property properties, akin to retail, business, or industrial, Sienna’s tenants are primarily seniors who allocate a portion of their pensions for assisted dwelling providers. This leads to a extra steady and sturdy stream of revenue for the corporate, as seniors require long-term care and are much less prone to transfer out of their properties rapidly. There’s a sense of group as nicely, which additionally contributes to this idea.
Moreover, assisted dwelling properties like these offered by Sienna Senior Dwelling are extra important from a socio-economic standpoint. These properties present important care and assist to seniors who might not be capable of dwell independently as a consequence of their well being or different components. Consequently, the federal government is extra doubtless to supply assist to a lot of these properties throughout occasions of disaster.
For instance, in the course of the pandemic, the Canadian authorities totally funded vacancies for Sienna’s Ontario and British Columbia residents, who make up the vast majority of the corporate’s rental income. This authorities help helped the corporate climate the pandemic and proceed to supply important care to its residents whereas retaining sturdy financials.
Senna Senior Dwelling reported sturdy This fall 2024 efficiency, with adjusted identical property internet working revenue (NOI) rising 22.6% year-over-year to $45.5 million. This marks the corporate’s eighth straight quarter of NOI progress, pushed by a 15.3% enhance within the Retirement phase and a 29.0% enhance in Lengthy-Time period Care. Full-year adjusted NOI rose 32% to $199.6 million, supported by increased occupancy, elevated authorities funding, and decrease staffing prices from improved worker retention.
Persevering with its growth, Sienna acquired two high-quality properties in Ontario for a mixed $81 million: Wildpine Residence, a 165-suite retirement dwelling in Ottawa, and Cawthra Gardens, a 192-bed long-term care facility in Mississauga. Each acquisitions are anticipated to generate instant monetary advantages and strengthen Sienna’s presence in key markets.
Financially, Sienna ended the yr with $435 million in liquidity, improved debt service and curiosity protection ratios, and prolonged its common debt maturity to six.7 years. With a powerful stability sheet and continued demand from Canada’s ageing inhabitants, Sienna is well-positioned for long-term progress.
Development Prospects
Sienna Senior Dwelling has recognized three key progress drivers: increasing its property portfolio, growing rental charges, and optimizing occupancy charges. In step with this technique, Sienna is at present creating a 147-suite retirement residence as a part of a campus of care mission in Brantford, Ontario. Moreover, a 150-suite retirement residence in Niagara Falls is scheduled to be accomplished on the finish of 2023. As Canada’s senior inhabitants continues to develop, Sienna is well-positioned to fulfill the rising demand for assisted-living properties.
With over 861,000 folks aged 85 and older recorded within the 2021 census and this age group rising at a fee of 12% since 2016, Sienna enjoys an extended runway of extremely predictable demand progress. The truth is, by 2050, the 85-and-older inhabitants is predicted to surpass 2.7 million folks, offering Sienna with a superb alternative to capitalize on this rising market.
Supply: Investor Presentation
Sienna’s administration has highlighted a major alternative within the present market. They’ve noticed that the demand for long-term care beds has reached an all-time excessive, whereas the variety of new assisted-living properties being constructed has considerably decreased in recent times. This market dynamic presents an distinctive alternative for Sienna to capitalize on this hole in provide and demand, broaden the enterprise, and proceed to optimize its occupancy fee, which at present stands at a notable 93.1%.
Whereas Sienna has constantly grown its revenues by executing this technique, the identical can’t be mentioned for its profitability. Working assisted-living properties, Sienna incurs plenty of bills, together with caretakers and different medical personnel whose prices have a tendency to extend notably over time.
Additional, as an actual property firm, Sienna recurrently points shares to broaden its property, which, when mixed with the depreciation of CAD in opposition to USD over the past decade, has led to a notable decline within the firm’s AFFO per share. The truth is, Sienna’s AFFO/share has decreased from $1.13 in 2013 to $0.57 in 2023. Trying forward, we anticipate that Sienna’s AFFO/share will stay steady. Regardless of anticipated income progress, increased working bills and rates of interest following the continued enhance in rates of interest are prone to offset the top-line drivers.
Dividend Evaluation
Since its preliminary public providing on the Toronto Inventory Change in 2010, Sienna Senior Dwelling has been paying a month-to-month dividend that has regularly elevated from C$0.071 to C$0.078. Nevertheless, as a consequence of fluctuations in overseas alternate charges, USD-denominated shares traded over-the-counter (OTC) have paid declining dividends over time.
The truth is, though the dividend has solely grown in CAD, the corporate’s annual dividend has decreased from $0.85 in 2013 to $0.70 final yr. On the present CAD/USD alternate fee, Sienna’s C$0.94 annual dividend interprets to roughly $0.54.
We count on Sienna’s dividend to say no additional within the coming years, following the identical rationale concerning why the corporate’s profitability is prone to lag shifting ahead. Nonetheless, we count on the present dividend to stay coated.
Last Ideas
Sienna Senior Dwelling has been prudently managed over time, leading to sturdy outcomes and a gradual enhance in its month-to-month dividend (in CAD phrases). Trying forward, we anticipate the corporate’s profitability and dividends to stay comparatively steady, as rising bills and rates of interest might counterbalance any progress from new properties and growing demand for assisted dwelling properties.
Nonetheless, we imagine the inventory in all fairness priced. With its noteworthy 5.7% dividend yield and interesting payout frequency, Sienna Senior Dwelling possesses the required attributes to be an appropriate selection for conservative, income-oriented buyers.
Don’t miss the assets under for extra month-to-month dividend inventory investing analysis.
And see the assets under for extra compelling funding concepts for dividend progress shares and/or high-yield funding securities.
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