Why Savaria's Dividend Machine Will Keep Churning Out Returns in a Graying World

The global population is aging, and with it, demand for accessibility solutions like stairlifts, elevators, and mobility aids is soaring. Savaria Corporation (TSX:SIS) sits at the epicenter of this secular trend, leveraging its dominant market position and financial resilience to fuel one of the most reliable dividend streaks on the market. With a 21-year dividend growth streak, a 2.5% yield, and margins expanding to record levels, SIS is primed to capitalize on a demographic tailwind that’s only getting stronger. Here’s why this stock should be at the top of your income portfolio checklist—and why now is the time to act.

The Demographic Bulletproof Vest
The math is undeniable: the world’s population aged 65+ will hit 1.5 billion by 2030, with North America and Europe leading the charge. Savaria’s core products—home elevators, stairlifts, and patient care solutions—are direct answers to this demand. In Q1 2025, its Accessibility Segment (77% of revenue) grew 6.1%, fueled by an 11.8% surge in North America, while its Patient Care division (23% of revenue) posted a 2.1% rise. This isn’t just a cyclical blip; it’s a structural shift.
The company’s strategic moves are amplifying this advantage. A $30 million expansion in South Carolina will boost production of its Lumar home elevator—a “stockable” product designed to streamline dealer distribution. Meanwhile, the acquisition of Western Elevator in Canada strengthens its direct sales network, and the new Multi Lift product line is targeting Europe, where the segment dipped 2.8% last quarter but remains a critical growth lever.
The dividend yield has held steady near 2.5% since 2021, while the payout ratio (dividends as a % of earnings) has been carefully managed. Despite a Q1 payout ratio of 77%, SIS’s robust operating cash flow ($31.3 million in Q1) and adjusted EBITDA growth (up 17.2% year-over-year to $40.6 million) ensure this dividend is far from stretched.
Margin Expansion: The Fuel for Future Growth
Savaria’s financial health is its secret weapon. The “Savaria One” initiative—a cost-cutting and operational efficiency program—is delivering results. Gross margins jumped 180 basis points to 37.8%, while adjusted EBITDA margins hit 18.5%, a 190-basis-point improvement. The company aims for a 20% EBITDA margin, with trailing 12-month margins already at 19%.
This margin strength isn’t just about cutting costs. It’s about localizing production (e.g., Mexico assembly for Lumar elevators) to avoid tariffs and product innovation (like the dealer-friendly Lumar design) to boost margins. With a net debt-to-EBITDA ratio of 1.49—down from 1.63 in late 2024—and $254.7 million in available funds, SIS has the liquidity to fund growth without over-leveraging.
Addressing the Elephant in the Room: Insider Activity
Critics might point to recent insider sales as a red flag. Director Alain Tremblay sold 225,102 shares in May 2025, totaling ~C$3.16 million. But context matters:
1. Strategic Buyers Outweigh Sellers: CEO Sébastien Bourassa and Chairman Marcel Bourassa (the company’s founders) indirectly purchased 575,300 shares each in March 2025 at C$11.51—a 23% discount to the stock’s May 2025 price of C$18.84. This signals confidence in the long-term trajectory.
2. Diversification, Not Disappointment: Tremblay’s sales may reflect personal wealth management, not skepticism about the company. With SIS stock up ~30% year-to-date, trimming exposure isn’t uncommon.
3. Net Position Remains Bullish: Insiders collectively own 17.45% of shares, and buying activity (C$448k) has been offset by selling (C$1.31 million) but not overwhelmed.
The Investment Thesis: Income + Appreciation Double Play
- Immediate Reward: A 2.5% yield with monthly distributions (CA$0.045/share) offers steady income, backed by 21 years of dividend growth.
- Margin Growth = Earnings Upside: The path to 20% EBITDA margins is clear, with Q1’s record $40.6 million EBITDA and backlog growth across both segments.
- Demographic Tailwind: The aging population is a decade-plus trend, and Savaria’s leadership in accessibility solutions gives it first-mover advantages in emerging markets like Mexico and Asia.
- Technical Momentum: The stock’s “Buy” technical rating (Barchart) and post-earnings pop to C$18.84 suggest investor confidence is building.
While the stock has corrected from its 2024 highs, the Q1 earnings beat (adjusted EBITDA hit $40.6 million vs. $34.7 million estimates) and backlog growth suggest a rebound is near.
Final Call: Don’t Miss the Lift
Savaria isn’t just a dividend play—it’s a structural growth story. With margins expanding, a fortress balance sheet, and tailwinds from an aging population, this stock offers rare combination of safety and upside. The payout ratio, while elevated at 77%, is sustainable given its cash flow, and insider buying by key executives underscores their confidence.
If you’re looking for income with growth potential, SIS is a buy now. The aging boom isn’t slowing down—and neither is Savaria.
Risk Factors: Geopolitical risks (e.g., tariffs), supply chain disruptions, and European market recovery uncertainty. Monitor margin trends and backlog growth for key signals.
Act Now: Secure your stake in this dividend powerhouse before the rally resumes.
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