Monthly Dividend Stock In Focus: Extendicare – Sure Dividend

Up to date on April twenty fourth, 2026 by Josh Arnold

Extendicare (EXETF), a Canadian supplier of long-term care, residence well being care, and managed providers, is a uncommon inventory in that it pays its shareholders month-to-month dividends, quite than the usual quarterly schedule. We’ve compiled an inventory of month-to-month dividend shares, 119 in all as of April 2026.

You may obtain our full Excel spreadsheet of all 76 month-to-month dividend shares (together with metrics that matter, like dividend yield and payout ratio) by clicking on the hyperlink under:

Whereas the yield is modest at lower than 2%, the month-to-month dividend makes Extendicare interesting to income-oriented buyers. The corporate can be ideally positioned to profit from the secular progress of demand for healthcare providers. On this article, we are going to focus on Extendicare’s prospects.

Enterprise Overview

Via its subsidiaries, Extendicare gives care and providers for seniors in Canada. The corporate affords long-term care (LTC) providers; residence well being care providers, comparable to nursing care, occupational, bodily, and speech remedy, help with each day actions, and contract and consulting providers to 3rd events. It operates LTC properties, retirement communities, and residential healthcare operations beneath the Extendicare, ParaMed, Extendicare Help, and SGP Accomplice Community manufacturers. The corporate was integrated in 1968 and is predicated in Markham, Canada.

Extendicare operates or gives contract providers to a community of simply over 100 long-term care properties and retirement communities, offering roughly 11 million hours of residence well being care providers yearly.

Supply: Investor Presentation

Extendicare was been damage by the coronavirus disaster, which induced many issues within the firm’s each day operations. COVID-19, influenza, and different viruses resulted in abnormally excessive worker absenteeism, thus exacerbating an already tight labor market. In consequence, Extendicare has seen its working prices improve considerably for the reason that onset of the coronavirus disaster.

Nonetheless, the corporate has managed to proceed to extend earnings. On February twenty sixth, 2026, Extendicare posted fourth quarter and full-year earnings, which had been fairly good and capped a really robust yr. Income was up 18% year-over-year to $337 million, with natural progress driving a really spectacular 15.7% acquire. The steadiness of progress was as a result of web of acquisitions and divestitures. Increased invoice charges helped drive natural income progress, partially offset by closure of underperforming properties.

Working prices had been $289 million, reflecting greater labor prices from quite a lot of components. Internet working earnings was up 22% year-over-year to $48 million, with adjusted EBITDA rising to $36 million, or 10.7% of income. Internet earnings got here to 21 cents per share in This autumn, up from 17 cents within the year-ago interval. For the yr, earnings got here to 81 cents, up from 60 cents in 2024. We count on $1.06 in earnings-per-share for this yr.

Development Prospects

Extendicare is ideally positioned to profit from a powerful secular development, specifically the rising demand for healthcare providers. The demand for well being care from seniors who’re above 85 years previous is rising at a speedy price. Certainly, Extendicare sees that inhabitants doubling by 2036, and tripling by 2051.

Supply: Investor Presentation

Furthermore, there’s an immense backlog of demand for long-term care beds, with greater than 50,000 seniors ready for a mattress in Ontario alone. Based on official estimates, there will likely be a necessity for greater than 200,000 new long-term care beds in Canada by 2035. Because of its 55+ years of expertise on this enterprise, Extendicare is ideally poised to profit from the secular progress within the demand for well being care providers.

Alternatively, buyers must be conscious that Extendicare has exhibited a unstable efficiency report. As a result of aforementioned influence of the pandemic on its enterprise, the corporate has not grown its earnings per share during the last decade. Due to this fact, the inventory is appropriate just for affected person buyers, who can endure prolonged durations of poor enterprise efficiency and inventory value volatility and stay centered in the long term. Given the very excessive comparability base fashioned this yr – which might simply be a report if achieved – we at present count on no progress in earnings within the coming years.

Dividend & Valuation Evaluation

Extendicare at present affords a 1.9% dividend yield. It’s thus an attention-grabbing candidate for income-oriented buyers, however the latter must be conscious that the dividend might fluctuate considerably over time as a result of fluctuation of the trade charges between the Canadian greenback and the USD.

The corporate has a really low payout ratio of 35%. The dividend due to this fact appears very secure, and we don’t see a situation the place the payout ought to should be minimize anytime quickly.

Relating to the valuation, Extendicare is buying and selling for simply over 13 instances its earnings per share for 2026. We assume a good price-to-earnings ratio of 10.0 for the inventory. Due to this fact, the present earnings a number of is greater than our assumed honest price-to-earnings ratio. If the inventory trades at its honest valuation stage in 5 years, it would have a ~3% annualized compression for the following 5 years.

Considering the 0% projected progress of earnings per share, the 1.9% dividend, and a -3% annualized compression of valuation stage, Extendicare might supply very modest annual complete returns over the following 5 years. The inventory has doubled prior to now six months, inflicting vital deterioration within the dividend yield and making the valuation way more costly. Regardless of the elemental tailwinds the corporate is more likely to take pleasure in, the inventory affords very unattractive ahead returns because it stands at this time.

Remaining Ideas

Extendicare has a stable enterprise mannequin and significantly advantages from the rising demand for healthcare providers. The inventory affords a modest dividend yield of 1.9% with a wholesome payout ratio of 35%, making it a comparatively secure candidate for income-oriented buyers’ portfolios. The inventory has an anticipated return of near zero per yr over the following 5 years, nonetheless, on a low yield and elevated valuation.

Buyers ought to pay attention to the danger ensuing from the corporate’s considerably weak steadiness sheet and its uneven enterprise efficiency. Due to this fact, the inventory is appropriate just for affected person buyers, who can ignore inventory value volatility and stay centered in the long term.

Furthermore, Extendicare is characterised by exceptionally low buying and selling quantity. Which means it’s arduous to determine or promote a big place on this inventory.

Don’t miss the sources under for extra month-to-month dividend inventory investing analysis.

And see the sources under for extra compelling funding concepts for dividend progress shares and/or high-yield funding securities.