This ‘Senior Citizen’ Stock Pays a Monthly Dividend That Yields 4.2%

Investors looking to generate dividend income every month should consider the stock of Sienna Senior Living (TSE:SIA).

Sienna Senior Living is a Canadian company that trades on the Toronto Stock Exchange. It owns and operates more than 70 retirement homes for senior citizens across Canada. It’s a growth business as the Baby Boom generation enters their twilight years.

SIA stock has been a strong performer of late, posting a 33% gain over the past 12 months, including a 10% increase so far this year in an otherwise down market. But there is another reason why investors might want to consider Sienna Senior Living’s stock: its hefty monthly dividend payment.

SIA Dividend Income

Unlike most companies that pay a dividend every quarter or twice a year, Sienna Senior Living pays a distribution to shareholders each and every month. The dividend is C$0.08 per month, giving the stock a chunky yield of 4.20%.

With a market capitalization of $2.30 billion, Sienna Senior Living is a small-cap stock. And it trades at a premium of 45 times this year’s earnings estimates. But the expense might be justified given that SIA stock provides investors with strong share price appreciation and a source of monthly income.

Is SIA a Buy?

Sienna Senior Living has a consensus Strong Buy rating among eight analysts. That rating is based on seven Buy and one Hold recommendations issued in the last three months. The average SIA price target of C$25.50 implies 14% upside from current levels.