Extendicare Inc & Sienna Senior Living Inc.

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Your thoughts on Extendicare & Sienna Senior Living stocks moving forward.
Both have been paying decent dividend and presently reached to a decent levels.

Is it a good time to liquidate these stocks and use those funds in buying any other recommended stock for a long term gain and consistent dividend

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Asked on June 28, 2021 10:46 am
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Private answer

Hey Shail,

They have finally rebounded nicely off pandemic lows. However, my opinion on the stocks remain the same - they just aren't all that attractive. Historical execution has been choppy at best (pre-pandemic) and there are still many headwinds facing these companies. They operate in heavily regulated industries which are under consistent public scrutiny. New government agendas usually target health, and long-term care in particular, so they also pose some political risk as well.

Sure the dividend yield is nice, but as i look for total returns they do not sway my opinion. Furthermore, I still don't consider the dividends safe as they have very high payout ratios - SIA in particular. SIA is also trading at a premium to historical averages right now.

Whether you chose to sell them here is up to you, I just don't see any major catalysts for these stocks to sustain a prolonged uptrend.

Mat

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Posted by Mathieu Litalien
Answered on June 29, 2021 4:27 am