Finding a good stock to buy right now can be a challenge amid all the volatility in the markets. But one stock on the TSX which has been red hot is healthcare company Extendicare (TSX:EXE), which operates more than 100 care facilities. Not only did it recently post a solid quarterly and year-end results, but it also announced a hike to its dividend.
In 2024, the company reported revenue of $1.5 billion, which rose more than 12% from the previous year. Net earnings also rose from $34 million to $75.2 million. And its adjusted funds from operations per share rose to $1.10 from $0.72, improving dividend sustainability. And there could be more growth ahead for the business. Extendicare continues to expand, with new long-term care developments underway. It is acquiring nine LTC homes from Revera for $60.3 million and has commenced construction on new facilities in Ontario.
As a result of the strong results and outlook, the company announced a 5% dividend hike to $0.042 per share monthly. The company’s payout ratio has now fallen below 50%, leaving room for even more increases in the future. With the recent hike, the stock is yielding around 4%.
Over the past 12 months, shares of Extendicare have soared more than 70%, as it has been one of the hottest stocks to own on the TSX. And with it still trading at a reasonably 15 times its trailing earnings, it may not be too late to invest in the healthcare company right now.
