There are numerous monthly dividend stocks available on the TSX index, but only a few of them are considered solid long-term investment options. It is important to remember that dividends are not guaranteed, so it is crucial to choose stocks based on more than just their dividend yield. Look for companies that consistently generate cash flow throughout market fluctuations, allowing them to sustain dividends even during tough times. Additionally, focus on dividend stocks with a sustainable payout ratio, enabling them to reinvest in growth opportunities and reduce debt, ultimately driving future cash flow and dividends higher.
One standout TSX stock for monthly passive income is Sienna Senior Living (TSX:SIA). With a market cap of $1.1 billion, Sienna Senior Living owns and operates long-term care communities, retirement residences, and managed residences in various provinces across Canada. The company offers a range of services including independent living, assisted living, memory care, and other specialized services.
Sienna Senior Living is considered recession-resistant due to its essential services and benefits from favorable demographics and increasing demand. Its diversified portfolio includes government-funded long-term care communities and private-pay retirement residences, making it one of the largest companies in this sector in Canada.
The company pays a monthly dividend of $0.078 per share, resulting in a forward yield of 6.5%. To earn $100 in monthly dividends, you would need to purchase 1,283 shares of Sienna Senior Living in June 2024. Over the past decade, the stock has provided a return of 109% to shareholders when factoring in dividends.
In the first quarter of 2024, Sienna Senior Living continued its trend of same-property net operating income growth in its long-term care and retirement segments. Its same-property NOI increased by 75.9% year over year to $63.9 million, marking the fifth consecutive quarter of growth in these segments. The company also reported adjusted funds from operations of $0.485 per share, with a payout ratio of less than 50%.
Investors looking to diversify their portfolio and reduce risk should consider adding high-dividend stocks with monthly payouts like Sienna Senior Living.