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Extendicare Inc (EXETF) is a senior care provider in Canada, focused on long-term care and home health care.

The company has three main business segments namely Long-term Care, Home Health Care, and Managed Services.

The Long-term Care segment, operating under the Extendicare brand, represents 53 owned homes in Ontario, Alberta, and Manitoba.

The Home Health Care segment, operating under the ParaMed brand, provides more than 9 million hours of home health care services annually in Ontario, Alberta, Manitoba, and Nova Scotia.

The Managed Services segment, operating under the Extendicare Assist and SGP Purchasing Partner Network brands, provides management, consulting, and group purchasing services to other care providers across Canada.

The company was incorporated in 1968 and is based in Markham, Canada.

Three key data points gauge Extendicare Inc. or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.
 

EXETF Price

Over the past year, Extendicare’s share price dropped about 10% from $7.18 to $6.45 as of Friday’s market close.

If Extendicare’s stock trades in the range of $5.00 to $10.00 this next year, its recent $6.45 share price might rise to $7.25 by next year. Of course, Extendicare’s price could drop about the same $0.80 amount or more.

My upside estimate of $0.80, however, is in line with the median of four analyst annual target prices estimated for brokers.
 

EXETF Dividend

Extendicare Inc. has paid variable monthly dividends since January 15, 2007. Extendicare’s most recent monthly dividend, payable September 15th to shareholders of record August 30th is $0.04. CAD Its annual dividend payout of $.48 is projected to yield 7.44% per Friday’s closing price.
 

EXETF Returns

Adding the $0.48 anticipated annual dividend to Extendicare Inc’s estimated $0.80 possible price upside reveals a $1.28 potential gross gain per share for the coming year.

At Friday’s $7.25 closing price, a little over $1000 would buy 138 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.07 per share.

Subtracting that maybe $0.07 brokerage cost from my estimated $1.28 gross gain per share makes a net gain of $1.21 X 138 shares = $166.98 or about a 16.7% net gain.

This may be the time to pounce on Extendicare Inc. shares. But beware, Extendicare Inc. is a Canadian care provider doing business in a well-regulated medical environment. Furthermore, the estimated $74.40 dividend from $1000 invested comes in at over ten times of the recent $6.45 single share price. The choice is yours.

Remember the true value of any stock is best realized by your personal ownership of shares.

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