This 10.4% Dividend Stock Pays Cash Every Single Month

Timbercreek’s 10%+ monthly yield is being supported by a growing mortgage book, even as it cleans up older problem assets.

Amy Legate-Wolfe

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote: “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published March 30, 7:00 pm EDT

| More on: TF

Key Points

Timbercreek is a non-bank real estate lender, so your monthly dividend comes from mortgage interest, not rent.
Its mortgage portfolio grew sharply in late 2025, helped by first mortgages and a big multi-family focus.
Payout coverage is tight and credit losses are a real risk, so this is higher-yield with higher volatility.

10 stocks we like better than Timbercreek Financial

Monthly dividend stocks can be a strong choice for any investor. They make income feel steadier and more useful. Instead of waiting for a quarterly payout, investors get cash coming in every month, which can be reinvested faster or used to support regular spending. That rhythm can make a stock easier to hold through market swings, especially when the payout is backed by recurring income rather than hype. And it’s exactly why this dividend stock stands out on the TSX today.

Concept of rent, search, purchase real estate, REIT — Source: Getty Images

TF

Timbercreek Financial (TSX:TF) is not a bank and it is not a traditional real estate investment trust (REIT). It is a non-bank commercial real estate lender that provides shorter-duration financing to real estate owners and developers across Canada. Its portfolio is built around income-producing urban properties, and management says it has grown that mortgage portfolio to about $1.2 billion. That gives investors exposure to real estate lending income without actually owning buildings themselves.

Over the last year, the story has been a mix of stability and cleanup. The dividend stock has kept its monthly dividend unchanged, which matters for income investors, but it has also been working through legacy assets and valuation issues tied to older problem loans and real estate inventory. The encouraging part is that the core lending business has kept moving. In the fourth-quarter 2025, Timbercreek advanced $333.9 million in new and existing net mortgages, driving the net mortgage portfolio up 13.7% year over year and 18.3% from the prior quarter.

There is also some momentum heading into 2026. Management said it expects the stronger funding pace to continue into the first quarter, especially in multi-family opportunities across its target markets. That matters because a bigger, better-positioned mortgage book can help support future income even if interest rates are drifting lower. Timbercreek also noted that its weighted average interest rate has held up better than the full drop in prime because so many of its variable-rate loans are protected by rate floors.

Into earnings

The earnings story is a little messy on the surface, but more encouraging underneath. In Q4 2025, net investment income came in at $25.7 million, down from $27.9 million a year earlier, while distributable income was $15 million, or $0.18 per share, versus $17.7 million, or $0.21 per share, in Q4 2024. The dividend stock posted a small net loss of $1.1 million in the quarter, but that was driven by expected credit losses, a fair value loss, and a loss on the sale of legacy land inventory. Those are not ideal, but they are not the same thing as the core business falling apart.

The key number for dividend investors is payout coverage. Timbercreek’s Q4 distributable income payout ratio was 95.3%, and management said the full-year ratio stayed within its target range at 96.7%. That is not a huge margin of safety, but it does suggest the monthly dividend is still being supported by the core lending book. The dividend stock also highlighted that 95.1% of the portfolio is first mortgages and 83.7% is tied to cash-flowing properties, with multi-family residential now making up 62.2% of the portfolio.

Valuation is where the case gets more interesting. At a recent share price around $6.75, Timbercreek offers that hefty 10.4% yield, while still looking like a modestly priced income stock rather than a wildly overhyped one. Right now, in fact, $7,000 can bring in immense income each month.

COMPANY	RECENT PRICE	NUMBER OF SHARES	ANNUAL DIVIDEND	ANNUAL TOTAL PAYOUT	FREQUENCY	TOTAL INVESTMENT
TF	$6.74	1,038	$0.69	$716.22	Monthly	$6,996.12

Bottom line

Put it all together, and Timbercreek Financial looks like a compelling monthly dividend stock. It pays cash every single month, it still has a strong core lending business, and the yield is hard to ignore. It is not risk free, and the market knows that. But for investors who want a high monthly payout backed by real recurring income, this one still looks worth a serious look.