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Sienna Senior Living (TSE:SIA) Will Pay A Dividend Of CA$0.078

Simply Wall St · 1d ago

The board of Sienna Senior Living Inc. (TSE:SIA) has announced that it will pay a dividend on the 15th of January, with investors receiving CA$0.078 per share. Based on this payment, the dividend yield will be 4.6%, which is fairly typical for the industry.

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Sienna Senior Living's Projections Indicate Future Payments May Be Unsustainable

We like a dividend to be consistent over the long term, so checking whether it is sustainable is important. Prior to this announcement, the dividend made up 210% of earnings, and the company was generating negative free cash flows. This high of a dividend payment could start to put pressure on the balance sheet in the future.

Over the next year, EPS could expand by 41.6% if the company continues along the path it has been on recently. If the dividend continues on its recent course, the payout ratio in 12 months could be 160%, which is a bit high and could start applying pressure to the balance sheet.

historic-dividend
TSX:SIA Historic Dividend December 18th 2025

See our latest analysis for Sienna Senior Living

Sienna Senior Living Has A Solid Track Record

The company has a sustained record of paying dividends with very little fluctuation. The annual payment during the last 10 years was CA$0.90 in 2015, and the most recent fiscal year payment was CA$0.936. Dividend payments have been growing, but very slowly over the period. Although we can't deny that the dividend has been remarkably stable in the past, the growth has been pretty muted.

Sienna Senior Living Might Find It Hard To Grow Its Dividend

Investors could be attracted to the stock based on the quality of its payment history. We are encouraged to see that Sienna Senior Living has grown earnings per share at 42% per year over the past five years. Although earnings per share is up nicely Sienna Senior Living is paying out 210% of its earnings as dividends, which we feel is borderline unsustainable without extenuating circumstances.

An additional note is that the company has been raising capital by issuing stock equal to 15% of shares outstanding in the last 12 months. Regularly doing this can be detrimental - it's hard to grow dividends per share when new shares are regularly being created.

Sienna Senior Living's Dividend Doesn't Look Sustainable

Overall, it's nice to see a consistent dividend payment, but we think that longer term, the current level of payment might be unsustainable. We can't deny that the payments have been very stable, but we are a little bit worried about the very high payout ratio. We don't think Sienna Senior Living is a great stock to add to your portfolio if income is your focus.

Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. For example, we've identified 3 warning signs for Sienna Senior Living (2 can't be ignored!) that you should be aware of before investing. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks.