Consider Sienna Senior Living for a stable monthly income

Are you looking for a reliable income-generating stock with room to grow? Sienna Senior Living (TSX: SIA) stocks could be the ones to watch in November 2024. After a tough 2022, in which SIA shares lost about 28% of their value, Sienna is making an impressive comeback this year. In 2024 alone, the market is up 46.4%, easily outperforming the broader market. TSX Composite is up 19.3% year to date.

At $16.82 per share and a market capitalization At $1.4 billion, this senior 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 annualized dividend yield of 5.7% and is paid monthly.

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

Sienna Senior Living stock

If it’s not already on your radar, Sienna is a company headquartered in Markham that focuses primarily on operating retirement homes and long-term care (LTC) facilities. It generates income by providing housing, care services and support for seniors, meeting both independent living and higher care needs.

When the global pandemic-induced restrictions on physical interactions came into effect in 2020, the company faced several challenges, including lower occupancy rates and higher operating costs, which negatively impacted their financial performance.

However, Sienna’s operating performance has improved significantly in recent years. Recently, the company reported its seventh consecutive quarter of year-over-year (year-over-year) growth in net operating income (NOI) for the same property. These positive factors could be the main reason for this monthly dividend share is on the rise this year.

The strong financial growth continues

In the third quarter of 2024 alone, adjusted NOI for the same properties increased 14.7% year over year to $43.4 million. This growth was evenly distributed across the pension and long-term care segments, where NOI increased 11% and 18.3% year over year, respectively. Sienna’s improving occupancy rate has also played an important role in its financial recovery in recent quarters. In the last reported quarter, the retirement segment’s occupancy rate exceeded 90% 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.

Furthermore, Sienna’s growth strategies are not limited to improving existing operations, but also include strategic acquisitions and expansion into high-demand regions. For example, with the recent $181.6 million acquisition of a continuing care portfolio in Alberta, the company added four high-quality properties to its senior living portfolio, allowing the company to expand in the high-demand Alberta market. Interestingly, three of these four recently acquired properties already have an occupancy rate of over 98%.

Build a monthly income portfolio with Sienna stock

Interestingly, Canada’s rapidly growing population of seniors will likely provide new impetus to Sienna’s financial growth in the long run. Given this, SIA could be a reliable stock to generate consistent cash flow every month. Its stable monthly dividends, currently yielding an attractive 5.7% annually, make it a very attractive choice for investors looking to supplement their income for years to come.