2 Monthly Dividend Stocks to Buy as Canada’s Population Ages

·1 min read

Like many of its peers in the developed world, Canada is heading into uncharted territory when it comes to its demographics. Over the next two decades, Canada’s senior population is expected to grow by over 60%. Moreover, the 75+ age group will more than double.

This will be a greater burden on health care services, retirement homes, and long-term care facilities. Canadians should consider the companies below that are positioned to provide these services in the years ahead. Moreover, these stocks also provide monthly dividends.

Extendicare (TSX:EXE) is a Hamilton-based company that provides care and services for seniors in Canada. Its shares have climbed 10% in 2021 as of close on October 27. The stock is down 3.8% month over month.

In Q2 2021, the company delivered revenue growth of 9% to $307 million. Meanwhile, adjusted EBITDA more than doubled in the year-over-year period to $17.8 million. The stock possesses a favourable price-to-earnings ratio of 10. Better yet, it offers a monthly dividend of $0.04 per share. That represents a tasty 6.6% yield.

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Sienna Senior Living (TSX:SIA) is a Markham-based company that provides senior living and long-term care (LTC) services. The stock is up 2.6% in the year-to-date period. Shares have plunged 3.6% from the previous month.

The company saw its net income rise $8.1 million from the prior year to $1.3 million in the second quarter of 2021. Investors will want to see improved earnings at Sienna in the quarters ahead. Despite its struggles, it still offers a monthly distribution of $0.078 per share. That represents a strong 6.6% yield.

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