This 8% Dividend Stock Pays Cash Every Month

Investors in this high-yield stock paying cash every month can experience paycheque-like consistency.

Key Points
  • Atrium Mortgage Investment Corporation (TSX:AI) is a Mortgage Investment Corporation that pays monthly cash dividends and yields about 7.99%, appealing to income-focused investors.
  • Supported by a conservative, real‑estate‑secured loan portfolio (≈96% first mortgages, avg LTV ≈60.8%) and a history of annual special dividends, Atrium aims to provide stable, paycheck‑like income for TFSA/RRSP investors.
  • 5 stocks our experts like better than [Atrium Mortgage Investment Corporation >

An “AI” stock, referring to its ticker symbol rather than an artificial intelligence play, has become a top pick for dividend chasers and income-focused investors. Atrium Mortgage Investment Corporation (TSX: AI) stands tall on the TSX as a dividend titan.

Beyond its generous 8% yield, the financial services stock pays monthly cash dividends. Who wouldn’t want an income stock that mimics a paycheque-like consistency?

Concept of rent, search, purchase real estate, REIT

Source: Getty Images

The nature of MICs

A Mortgage Investment Corporation, or MIC, like Atrium, is grounded in real estate. MICs pool money from investors to fund a portfolio of real estate-secured loans. The pooled funds are then lent to borrowers, which is the core business model. Atrium’s portfolio of real estate-secured loans consists of residential, multi-residential, and commercial mortgages.

More importantly, the dividend payments are secure. Under the Canadian tax law, MICs are required to distribute nearly 100% of their net income to shareholders to maintain tax-exempt status. Most borrowers are not typically serviced by large and traditional financial institutions.

Alternative mortgage lender

Atrium, a $555.5 million MIC, markets itself as an alternative mortgage lender. Its Founder and CEO, Rob Goodall, said, “Our investment objectives are to preserve our shareholders’ equity and to provide shareholders with stable and secure dividends.”

The business model helped Atrium deliver strong, consistent returns over the last 24 years. Today, the MIC’s consistent earnings profile attracts the attention of dividend investors. The lending policy or underwriting is conservative, but the mortgage servicing is aggressive.

A key factor is a focus on major urban centres, where the stability and liquidity of real estate is high. Atrium also charges higher rates than traditional banks. The average net income from 2021 to 2024 was $46.9 billion. For 2025, the estimated income is $49.6 million.

“Atrium continues to deliver strong and stable earnings per share, even amid a challenging economic environment,” Goodall said. He added that loan originations for the first nine months of 2025 have increased. At the end of Q3, the average loan-to-value is 60.8%. Notably, 96% of the portfolio is first mortgages.

Regular and special dividends

As mentioned, Atrium is a great source of passive income for its high yield. The current share price of $11.64 is investor-friendly and reasonably cheap for budget-conscious Canadian investors. Furthermore, in addition to the regular monthly dividends, the MIC has been paying special dividends every year-end since 2019.

The Board usually approves and declares special dividends if the total dividends distributed to shareholders for the year are less than Atrium’s taxable income for the same year.

For Tax-Free Savings Account (TFSA) users, the $7,000 annual contribution limit for 2026 can buy 601 shares. The investment will generate $46.61 in cash dividends monthly ($559.30 annually).

Registered Retirement Savings Plan (RRSP) account holders can also enjoy tax-free money growth by investing in Atrium. Assuming you contribute the max limit of $32,490 to qualify as a 2025 tax deduction (March 1 deadline), the money will increase by $2,595.95 in one year.

Income power

Atrium’s monthly cash dividends allow for more frequent compounding, 12 times in a year instead of four. A passive investment, regardless of the amount, transforms into a monthly income stream similar to a regular paycheque.

Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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