The S & P / TSX Comprehensive Index did not close below 19,000 from April 5th to April 9th, 2021. Canada’s major equity markets have risen by double digits (10.29%) so far. So far, the best performing sector this year is healthcare with a + 29.49% increase. The energy sector is second (+ 28.05%) and the materials sector (-0.55%) is the only sector among the 11 in the negative territory.
The healthcare sector has two components that need to be attracted Yield-hungry investors.. Both companies are at the heart of the health crisis. COVID-19 has hit long-term care (LTC) facilities and retirement homes hard, but modernization should take place soon.Dividend stock Siena Senior Living (TSX: SIA) and Extended care (TSX: EXE) Yield of 6% or more.
Leading LTC Provider
Mercum’s Siena Senior Living has been offering Senior Living and LTC services since 1972. The $ 990.17 million company is one of the largest commercial LTC providers in the country. We own LTC facilities and retirement residences in Ontario and British Columbia.
As of the end of 2020, Siena owns and operates 70 homes for the elderly and manages 13 homes for third parties. In 2020, lower average occupancy rates for LTC and retirement homes resulted in a net loss of $ 24.4 million, compared to a net profit of $ 7.5 million in 2019.
Despite the disastrous performance of the pandemic, Siena shares have risen 6.23% year-to-date. We maintain a solid balance sheet and our business is backed by government-guaranteed cash flow. The stock price is $ 14.77, but the dividend yield is as high as 6.34%.
According to Siena’s president and chief executive officer, Nitin Jain, the company’s development plans are underway. Dr. Andrea Moser, Chief Medical Officer of Siena, added that most of the team members, basic caregivers, and residents are fully vaccinated.
Quality healthcare provider
Extendicare outperforms TSX with a 20.05% increase year-to-date. You can get Healthcare shares for $ 7.83 per share and pay a dividend of 6.13%. Like Siena, the $ 710.9 million company operates in Senior Space and is based in Markham. You will invest in pure Canadian senior care and service providers.
Since its inception in 1968, Extendicare is now recognized as a leading provider of quality healthcare throughout Canada. Even before the outbreak of the coronavirus, the company was in a unique position to take advantage of industry trends. The goal is to broaden our footsteps in Canada while meeting the demands of an aging population.
In 2020 (the year ended December 31, 2020), Extendicare reported a 7% increase in total revenue compared to 2019. However, net operating profit (NOI) fell 31%. Extendicare has financial flexibility due to its high liquidity position and debt maturity until the first quarter of 2022. As of the end of 2020, cash and cash equivalents on hand were $ 180 million and unused line of credit was approximately $ 71.3 million.
Pure payout play
The pandemic has disproportionately affected the Siena Senior Living and Extended Care businesses. Still, both entities survived the storm. Those who have the potential to become investors pay pure dividends and Reliable source of income..
Growth could resume once the government embarks on a post-pandemic modernization or upgrade of the industry as a whole. Both companies are experienced operators of LTC facilities and retirement homes. Canada’s aging demographics will supply demand and reduce vacancies in the coming years.
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Stupid contributor Christopher Liu There are no positions in any of the listed stocks.
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