As Canadian investors face potential economic disruptions from U.S. tariffs in 2025, strategic dividend investing may emerge as a powerful wealth-preservation strategy. A regular stream of monthly dividends from a formidable stock could generate liquidity during market volatility bouts, potentially saving investors from selling positions at unfavourable terms during trade wars. First National Financial (TSX:FN) is an exceptional high-yield monthly dividend stock that can transform your investment portfolio into a reliable passive income generator.
Why First National Financial stock stands out for dividend seekers
Dividend investors prize consistency and growth, and First National Financial delivers impressively. With 18 consecutive years of dividend increases, monthly dividend payments, and a recent strong fourth quarter financial performance, the $2.4 billion financial sector stock offers more than just financial returns.
First National Financial’s fourth quarter 2024 operational performance showcases remarkable resilience: a 19% revenue surge to $600 million and net income jump from $44.2 million a year ago to $63 million demonstrate the company’s robust financial health.
The mortgage originator isn’t just weathering economic storms; it’s thriving through them. The company’s focus on non-bank mortgages for Canadian clients keeps it insulated from direct U.S. tariff risks, while its track record speaks volumes.
In 2024, FN hit a record $153.7 billion in mortgages under administration (MUA), providing it a larger portfolio to generate recurring income from. With the Bank of Canada poised to continue cutting overnight lending rates in 2025, FN anticipates a stronger housing market, which could further fuel its growth – and your dividend income beyond 2025.
First National Financial stock exemplifies an ideal high-yield dividend investment. Its dividend metrics are compelling: it paid out 89% of 2024 earnings in dividends. Excluding fair-value gains and losses on financial instruments, which may not be readily distributable, the dividend payout rate falls to 71% for 2024.
FN stock’s regular dividends are well covered by earnings, and they appear generally safe for passive income investment purposes.
How to earn $500 monthly: Your passive income blueprint
Here’s the breakdown for generating $500 monthly in dividend income from FN stock:
| Company | Recent Price | Number of Shares | Dividend per Share | Total Monthly Dividend | Annual Dividend Total |
| First National Financial (TSX:FN) | $39.87 | 2,401 | $0.2083 | $500.13 | $6,000.54 |
The investment requires approximately $95,727.87 in capital, translating to a remarkable 6.3% annual dividend yield. This calculation represents a textbook example of how the high-yield monthly dividend stock can generate substantial passive income in a retirement investment portfolio.
A strategic approach to building dividend wealth
Not everyone can invest the full amount immediately, and that’s perfectly acceptable. Successful dividend investing is a marathon of consistent, strategic investments. By implementing a dollar-cost averaging approach – investing smaller amounts monthly or bi-weekly –you can gradually build your position. This method reduces financial strain while consistently working towards your passive income objectives.
Navigating risks and opportunities in 2025
No investment is without risk, and FN is no exception. Anticipated increases in single-family mortgage originations and lower interest rates from the Bank of Canada might boost mortgage demand, but broader economic challenges – like tariff-related job market shifts –could slow housing market activity.
However, government interventions and a potentially weaker Canadian dollar could make exports more competitive and alleviate some tariff damage. Staying informed about these factors will help you make adjustments to your strategy as needed.
Investor takeaway
First National Financial stock could be a cornerstone for your passive income goals, but diversification remains crucial. Pair FN with other dividend-paying stocks, such as Real Estate Investment Trusts (REITs) or Exchange Traded Funds (ETFs) paying monthly dividends to spread risk and enhance resilience.
Whether you invest $100 or $1,000 this month, the important step is to begin. Every share you own brings you closer to that $500 monthly milestone – and with time, consistency, and a diversified approach, financial peace of mind is within reach.
Ready to turn mortgage markets into monthly cash flow? Start today, stay patient, and let dividends do the heavy lifting
