2 Top Canadian Monthly Dividend Champions (2024)

Most dividend-paying TSX companies offer quarterly payouts, but two high-yield stocks are monthly dividend champions.

Financial health and dividend consistency are the criteria for choosing dividend stocks. Companies with stable earnings and a history of consistent dividend payments are popular among passive-income seekers. However, payout frequency matters to some dividend investors besides the dividend yield.

While most publicly listed Canadian firms pay quarterly dividends, only a few pay monthly. If you prefer 12 payouts yearly, not four, Sienna Senior Living (TSX:SIA) and Exchange Income Corporation (TSX:EIF) are the TSX’s monthly dividend champions.

Return to a stable operating environment

The coronavirus breakout in 2020 severely affected many businesses, including senior living and long-term-care (LTC) services. Sienna Senior Living, a well-established company in the retirement living space, is no exception. As a result, the company experienced a significant drop in occupancy and incurred losses (nearly $25 million) in 2020.

Despite the business reversal, Sienna Senior Living didn’t slash or suspend dividend payments. The company proved its worth as it kept investors whole on monthly dividend payments, as it had since January 2012. At $12.98 per share, the healthcare stock is up 15.04% year to date and pays a 7.01% dividend.

The business slowly returned to a stable operating environment as COVID cases receded. The $947.11 million company reported strong financial results in the fourth quarter (Q4) and the full year 2023. According to its president and chief executive officer (CEO), Nitin Jain, Q4 2023 marked the fourth consecutive quarter of significant year-over-year same-property net operating income (NOI) growth.

In the 12 months ending December 31, 2023, revenue increased 9.3% to $785.4 million versus 2022, while net income declined 34% year over year to $7.04 million. Notably, NOI rose 13% to $151.25 million from a year ago. The $68.3 million total dividends paid for the year represent a 1.4% increase from the previous year. In Q4 2023, the average occupancy in the same-property portfolio was 88.2%.

Jain said the aging population drives Canadian senior living. Given the demand for high-quality care and services and a limited new supply of retirement residences, Sienna Senior Living is on track to seize the tremendous growth potential. For 2024, management projects a high-single-digit percentage growth in the Retirement segment and low- to mid-single-digit percentage growth for LTC.

The compelling reasons to invest in SIA are the longevity of operations (51 years), diversified portfolio (government-funded LTC communities and private-pay retirement residences), and growing demand.

Dividend grower

Exchange Income Corporation, or EIC, achieved multiple financial records last year. In addition to the $2.1 billion record revenue (21% year-over-year increase), net earnings reached a record $122 million (10.9% higher than in 2022). Since 2020, the top and bottom lines have consistently grown.

The $2.3 billion company and its subsidiaries engage in aerospace and aviation services and equipment, and manufacturing businesses globally. As of this writing, the share price is $48.66 (+9.38% year to date), while the dividend offer is 5.31%. Also, in November 2023, Exchange Income announced its 17th dividend increase since 2004.

Mike Pyle, CEO of EIC, said the 5% per annum cumulative dividend growth since inception is an incredible achievement. He added that the contract wins and acquisitions last year assure further growth for the portfolio of companies in 2024 and beyond.

Lucrative options

Sienna Senior Living and Exchange Income Corporation are lucrative options for passive-income investors looking for monthly cash flow streams.