Payout Ratio Steady...Dividend SustainableAnd that is what's important with these investments. As long as the Dividend is sustainable, this will remain an attractive investment.
Sienna is a recession proof busines and they are running their business exceptionally well.
1Q 2023 Payout Ratio was 48.2% attributable to the one-time Gov. Funding, but remained at 94.7% without taking the Funding into consideration.
Once the new projects in Niagara Falls, Brantford, North Bay & Keswick come online, the P/O ratio is expected to come down well below 90%.
This is a great, low risk investment which is still paying a healthy sustainable dividend yielding almost 7% annually.
"Once fully stabilized, the projects in Niagara Falls, Brantford, North Bay and Keswick are expected to lead to a high single digit percentage reduction in Sienna’s AFFO payout ratio."