Most dividend shares are content material to pay quarterly. Some reduce their payouts when issues get powerful. However one TSX inventory has quietly stored on paying month after month, it doesn’t matter what. That inventory is Extendicare (TSX:EXE), and it simply raised its dividend once more.
Into earnings
As of March 2025, the dividend inventory boosted its month-to-month dividend by 5%, bringing it to $0.042 per share. At a share value of about $12.50, that provides traders a 4% annual yield paid month-to-month. It’s not simply the reliability that’s interesting; it’s the truth that Extendicare is discovering methods to develop in one of the difficult sectors: long-term care and residential well being.
In its newest earnings report for the primary quarter of 2025, Extendicare delivered a 42.7% enhance in adjusted earnings earlier than curiosity, taxes, depreciation, and amortization (EBITDA), climbing to $29 million. That’s not the sort of bounce you often see in a sleepy dividend inventory. However then once more, Extendicare hasn’t precisely been sitting nonetheless.
Income got here in at $374.7 million, up from $367.1 million a 12 months earlier. However the extra necessary determine is what it might have been with out the distortions of past-period accounting: a 5.8% bounce to $363.7 million. The dividend inventory is making more cash throughout all its enterprise segments of long-term care, dwelling well being care, and managed providers.
Extra to return
Let’s pause there. Lengthy-term care would possibly sound like a slow-growth, extremely regulated nook of the financial system, and it’s. However Extendicare has discovered methods to modernize. It simply opened a brand-new 256-bed dwelling in Stittsville, changing an outdated Class C facility. It additionally bought off three different growth initiatives to its Axium three way partnership for $56.3 million, locking in an after-tax achieve of $11.1 million. The playbook right here is wise. Recycle capital from previous or non-core belongings, and reinvest in trendy care centres and development alternatives.
Plus, there’s extra coming. Extendicare expects to shut the acquisition of 9 long-term care properties from Revera later this 12 months, including to its redevelopment pipeline. These aren’t self-importance purchases, however a part of a long-term shift towards higher infrastructure, improved care, and better working margins.
The dividend
Right here’s the place it will get much more fascinating for revenue traders. Extendicare reported adjusted funds from operations (AFFO) of $0.235 per share, up from $0.210. Which means the brand new dividend of $0.042 month-to-month, or $0.504 yearly, is well-covered. CEO Dr. Michael Guerriere summed it up finest, stating, “Q1 2025 represents one other quarter of robust outcomes sustained by development and constructive working efficiency throughout all our enterprise segments.”
What Extendicare is doing is probably not flashy, however it’s working. In a world the place many dividend shares are reducing again or hoarding money, this dividend inventory is quietly buying, modernizing, and increasing, with out overextending. In the meantime, you would put $10,000 in the direction of this dividend inventory and sit up for $400 every year, and $33 every month!
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| EXE | $12.50 | 800 | $0.50 | $400.00 | Month-to-month | $10,000.00 |
Backside line
So, sure, this month-to-month dividend payer could not seize headlines, however it doesn’t have to. It simply raised its dividend, posted robust development, and set itself up for much more growth within the again half of the 12 months. For traders searching for revenue they will depend on, and a enterprise that is aware of find out how to evolve, Extendicare stays a uncommon gem on the TSX.
