Sienna Senior Living Inc T.SIA

Yield is closing in on 8% BUT is it safe?

[smalltimeinvest]

Hello all. I have a fair bit into this (for me) and this lower price is interesting. I committed to myself that I would not consider getting more until the price dropped below $10.00. But more importantly, much more important I think is the safety of the current monthly dividend of $.078 per share. Given all the debt this company has and the obvious increasing cost of that debt I am not sure the current dividend is safe. . I am very interested in hearing any thoughts about this. As always, good luck to all!. Thank you.

[dogatcat]

The dividend payment is covered almost entirely by the Ontario government's contribution to Sienna for the LTC beds.  This dividend is as safe it can be in this market.   The government may have to increase the subsidy to Sienna and the other LTC homes if costs rise.  Remember, no one wants to run LTV beds but someone has to.  The government (s) will always backstop