Have you been searching for a reliable income-generating stock with room to grow? Sienna Senior Living (TSX:SIA) stock might just be the one to consider in November 2024. After a tough 2022, during which SIA stock lost around 28% of its value, Sienna is making an impressive comeback this year. In 2024 alone, it's up 46.4% — outpacing the broader market by a big margin as the TSX Composite has risen 19.3% year to date.
At $16.82 per share and a market cap of $1.4 billion, this senior living company could be an attractive stock for long-term investors, not only because of its recent rebound but also because of its stable monthly dividend payouts. At the current market price, this stock offers an impressive 5.7% annualized dividend yield and makes monthly distributions.
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 has been driving its stock higher in 2024.
Sienna Senior Living stock
If it's not on your radar yet, Sienna is a Markham-headquartered company that primarily focuses on operating retirement homes and long-term-care (LTC) facilities. It generates revenue by providing housing, care services, and support for seniors, catering to both independent living and higher-care needs.
As the global pandemic-driven restrictions on physical interactions came into effect in 2020, the company faced several challenges, including lower occupancy rates and increased operational costs, which took a toll on its financial performance.
However, Sienna's operational performance has seen significant improvements in the last couple of years. Recently, the company reported the seventh consecutive quarter of YoY (year-over-year) growth in its same-property net operating income (NOI). These positive factors could be the main reason why this monthly dividend stock is rallying this year.
Strong financial growth continues
In the third quarter of 2024 alone, its adjusted same-property NOI rose 14.7% YoY to $43.4 million. This growth was evenly distributed across its retirement and LTC segments, which saw NOI increases of 11% and 18.3% YoY, respectively. Sienna's improving occupancy rates have also played an important role in its financial recovery in recent quarters. In the latest reported quarter, the occupancy rate of its retirement segment surpassed 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 aren't limited to improving existing operations but also include strategic acquisitions and expansion into high-demand regions. For example, the company's recent $181.6 million acquisition of a continuing care portfolio in Alberta added four high-quality properties to its senior living portfolio, helping it expand in the strong-demand Alberta market. Interestingly, three of these four recently acquired properties are already operating at more than 98% occupancy.
Build a monthly income portfolio with Sienna stock
Interestingly, the fast-growing population of seniors in Canada is likely to give another push to Sienna's financial growth in the long term. Given this, SIA could be a reliable stock for generating consistent cash flow every month. Its stable monthly dividends, which currently yield an attractive 5.7% annually, make it a really attractive choice for investors looking to supplement their income for years to come.
