Extendicare Announces January 2025 Dividend of C$0.04 per Share

Extendicare Inc. (TSX: EXE), a leading Canadian healthcare provider, has announced its January 2025 dividend of C$0.04 per share. This consistent payout reflects the company's commitment to returning value to shareholders while maintaining a strong financial position. The dividend, which will be paid on February 15, 2025, to shareholders of record as of January 31, 2025, is in line with the company's historical dividend policy.

Extendicare's dividend history demonstrates a stable and consistent payout, with the company maintaining a dividend of C$0.04 per share since 2013. This consistency is a testament to the company's strong financial performance and commitment to returning value to shareholders. The company's dividend yield, currently around 4.66%, is attractive compared to other healthcare stocks and offers income-oriented investors a compelling opportunity.



The company's strong financial performance, driven by rate increases in long-term care (LTC) and home health care, volume growth in home health care and managed services, and strategic acquisitions, has enabled it to maintain and grow its dividend. In 2024, Extendicare reported revenue of C$1.30 billion, an increase of 6.83% compared to the previous year. While earnings decreased by -51.14% in 2023, the company's revenue growth and strong cash flow position support its ability to maintain and grow its dividend.

Extendicare's dividend payout ratio has remained relatively stable over the years, indicating that the company is consistently distributing a significant portion of its earnings as dividends. In 2024, the payout ratio was 63.16%, which is within the range of the previous years, suggesting that the company is committed to maintaining and growing its dividend payments.



The company's growth strategy, which includes acquisitions and redevelopment projects, has also contributed to its dividend growth. In 2024, Extendicare announced the acquisition of two new homes in the Axium JV, which are expected to generate additional revenue and contribute to dividend growth. Additionally, the company commenced construction on a new 256-bed LTC redevelopment project in St. Catharines, Ontario, and plans to start two more redevelopment projects before the end of November.



In conclusion, Extendicare's announcement of a C$0.04 per share dividend for January 2025 reflects the company's strong financial performance and commitment to returning value to shareholders. The company's consistent dividend history, attractive yield, and growth prospects make it an attractive investment opportunity for income-oriented investors. As Extendicare continues to execute its growth strategy and maintain its strong financial position, investors can expect the company to continue to deliver value through consistent dividend payouts and potential capital appreciation.