Editor’s note: An earlier version of this article overstated the monthly take-home pay associated with investing in Timbercreek. The amount has been clarified.
When hunting for a monthly dividend stock, there are a few key factors to consider. First, make sure the company has a solid history of paying dividends consistently. Bonus points if it’s been able to increase them! Also, look at the dividend yield, but don’t be fooled by super-high ones. These can sometimes signal trouble. Lastly, check the company’s financial health, like its cash flow and debt levels, to ensure it can keep those dividends coming. A little research now can pay off with regular monthly income! So, let’s look at one to consider.
Timbercreek Financial
Timbercreek Financial (TSX:TF) is a Toronto-based company that focuses on real estate lending, particularly with commercial mortgages. What’s great about Timbercreek stock is that it provides consistent, steady income to investors through its monthly dividends, thus making it a popular choice for those seeking regular payouts. It invests in a wide range of real estate assets, which gives it a diversified portfolio and a reliable cash flow. Key factors when you’re looking for a stable dividend stock.
As for its dividend history, Timbercreek stock has a solid track record of paying dividends regularly. Plus, it’s known for offering a pretty attractive yield compared to other options on the TSX. It’s managed to keep payouts consistent, even during some tougher times in the market. This is a good sign for long-term dividend investors. If you’re looking for a reliable monthly income, Timbercreek stock has definitely earned its place on many watchlists.
Dividend history
Timbercreek stock stands as a relatively safe dividend stock thanks to its strong focus on commercial real estate lending, which tends to provide steady income streams. In its most recent earnings report, Timbercreek showed stable financial performance, with consistent growth in its loan portfolio and low levels of loan defaults. This kind of solid financial footing suggests that they’re in a good position to maintain their monthly dividend payments. This is always a plus when you’re relying on a stock for steady income.
However, like any company, Timbercreek isn’t without its risks. The real estate market, especially in the commercial sector, can have its ups and downs, and any major shifts could impact their earnings. But given its diversified approach and historical reliability, it seems well-prepared to weather any bumps in the road. As long as it keeps up the good management and market conditions stay reasonable, Timbercreek is likely to remain a strong candidate for future dividend payouts.
Still valuable
Timbercreek stock seems to hold solid value based on its most recent stats. With a dividend yield of 8.48% at writing and a consistent payout history, it’s an attractive option for dividend investors. The payout ratio of 94.52% might seem high. Yet Timbercreek stock has a history of managing its cash flow well, which helps maintain its dividends. Plus, its steady growth in revenue, even with the quarterly dip in earnings, shows that the company is resilient. Timbercreek’s share price is also near its 52-week high, which suggests investor confidence remains strong.
On the flip side, Timbercreek’s high debt-to-equity ratio of 132.31% indicates that they rely heavily on debt. This could pose risks if the real estate market or interest rates fluctuate significantly. However, with a solid profit margin of over 70% and a return on equity of 8.73%, the company shows it can manage its obligations effectively. All things considered, Timbercreek Financial looks valuable as long as you’re comfortable with its debt level and the risks that come with it.
Bottom line
So, how much could a $15,000 investment get you in one year?
Investing $15,000 in Timbercreek at the stock’s recent price of $8 means you’d own 1,875 shares ($15,000 / $8). And that means you’d earn $1,293.75 of passive income in dividend payouts over the course of the year.
| STOCK PRICE | NUMBER OF SHARES OWNED | ANNUAL DIVIDEND PER SHARE | TOTAL PAYOUT OVER A YEAR |
| $8 | 1,875 | $0.69 | $1,293.75 |
And let’s say the stock price rises 28% in the next 12 months, as it’s done in the past year. That would put the per-share price at $10.24.
| STOCK PRICE | NUMBER OF SHARES OWNED | VALUE OF INVESTMENT | INVESTMENT GAIN (STOCK RETURN) |
| $10.24 | 1,875 | $19,200 | $4,200 |
So in one year, your investment could earn $4,200 in returns and $1,293.75 in dividends. That’s an overall return of $5,493.75 in just one year, or an average of $457.81 each month. Of course, you won’t actually get the $4,200 from the rising stock price until you sell your shares, though the passive income from the dividends will end up as a $107.81 deposit in your brokerage each and every month.
