Current Analysis: Sienna Senior Living Inc.

TM Editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.

Mark, Marker, Hand, Write, Glass, Glass Pane

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Sienna Senior Living Inc (LWSCF) is an owner of seniors' housing, a licensed long-term care operator in Ontario, and a provider of services across the full continuum of care.

The firm operates solely within Canada. The company is comprised of the following three main business segments, LTC, Retirement, and Other.

The LTC business division consists of approximately 34 LTC residences in the Province of Ontario, eight seniors' living residences located in the Province of British Columbia, and the LTC management services business. The group derives a majority of its revenue from the LTC segment.

The company was formerly known as Leisureworld Senior Care Corporation and changed its name to Sienna Senior Living Inc. in May 2015.

Sienna Senior Living Inc. was founded in 1972 and is headquartered in Markham, Canada.

Three key data points gauge Sienna Senior Living Inc. or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

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

LWSCF Price

Over the past year, Sienna’s share price rose about 20.5% from $8.90 to $10.73 as of Tuesday’s market close.

If Sienna shares trade in the range of $7.00 to $15.00 this next year, its recent $10.32 share price might rise to $11.80 by next year. Of course, Sienna’s price could also drop about the same $1.08 estimated amount or more.

My $1.08 upside estimate is based on Sienna’s annual price increases over the past four years.

LWSCF Dividend

Sienna has paid Monthly dividends since June 2011. The initial dividend of $.07 dropped to $.06 in January 2015 and briefly became $.05 in January 2016. Since April 2016 the Sienna M dividend has stayed fixed at $.0571,

LWSCF’s most recent M dividend of $0.0571 was declared July 15th for shareholders of record July 31st and the dividend is payable August 15th.

A forward-looking $0.69 annual dividend yields 6.38% at Tuesday’s closing share price.

LWSCF Returns

To put it all together, a $1.75 estimated gross gain per share for the next year is shown by adding Sienna’s $0.69 annual dividend to the estimated price upside of $1.06.

A little over $1000 buys 93 shares at $10.32 per share.

A $10 broker fee (if charged), paid half at purchase and half at the sale, might take out $0.1075 per share out of the $1.75 gross gain to reveal a net gain of $1.6425 X 93 shares = $152.75 for about a 15.25% estimated net gain on the year.

Furthermore, the $63.80 annual dividend income from $1K invested is over 5.9 times greater than the $10.74 single share price. By these numbers, Sienna Senior Living Inc. may be an ideal dividend dog.

You might choose to pounce on Sienna.  It is a 52-year-old dividend-paying Canada-based long-term care provider that has a 13-year track record paying monthly variable dividends.

The exact track of Sienna’s future price and dividend will entirely be determined by market action.

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


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Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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