Consider Sienna Senior Living for a stable monthly income

Have you been looking for reliable stocks that generate income and have room for growth? Sienna Senior Life (TSX:SIA) stock may be worth considering in November 2024. After a tough 2022, during which SIA shares lost around 28% of their value, the Sienna has made an impressive comeback this year. It grew 46.4% in 2024 alone, significantly outperforming the broader market as TSX Composite since the beginning of the year has grown by 19.3%.

With a price of $16.82 per share and a market capitalization of $1.4 billion, this oldest living company could be an attractive stock for long-term investors not only because of its recent recovery, but also because of its stable monthly dividend payments. At the current market price, this stock offers an impressive annual dividend yield of 5.7% and pays out monthly.

Before I give you a few key reasons to consider Sienna stock now, including its long-term growth prospects, let’s take a closer look at what’s driving its stock higher in 2024.

Sienna Senior

If it’s not already on your radar, Sienna is a Markham-based company primarily focused on managing nursing homes and long-term care (LTC) facilities. It generates income by providing housing, care services and support to older people, meeting both independent living and higher care needs.

When global restrictions on physical interaction brought on by the pandemic took effect in 2020, the company faced a number of challenges, including declining occupancy and increased operating costs, which impacted its financial performance.

However, Sienna’s operating performance has improved significantly over the past couple of years. The company recently reported its seventh consecutive quarter of comparable property net operating income (NOI) growth. These positive factors may be the main reason why monthly dividends are rising this year.

Strong financial growth continues

In the third quarter of 2024 alone, adjusted same-real estate investment income grew 14.7% year over year to $43.4 million. This growth was evenly distributed across the retirement and LTC segments, where NOI increased by 11% and 18. 3% YoY respectively. The Sienna Hotel’s improved occupancy rates also played a major role in its financial recovery in recent quarters. In the most recently reported quarter, the retirement segment’s occupancy rate exceeded the 90% mark for the first time in more than five years, reflecting strong demand for Sienna’s facilities and the effectiveness of its sales and marketing efforts.

Moreover, Sienna’s growth strategies are not limited to improving existing operations, but also include strategic acquisitions and expansion into high-demand regions. For example, the company’s recent acquisition of a continuing care portfolio in Alberta for $181.6 million added four high-quality properties to its seniors housing portfolio, helping it expand in the high-demand Alberta market. Interestingly, three of these four newly acquired properties are already operating at over 98% occupancy.

Build a Monthly Income Portfolio with Sienna Stocks

Interestingly, Canada’s rapidly growing senior population is likely to provide another boost to Sienna’s financial growth in the long term. Considering this, SIA can become a reliable company providing a stable cash flow every month. The stable monthly dividend, which currently yields an attractive 5.7% per annum, makes it a truly attractive choice for investors looking to boost their income for years to come.