Investing in dividend stocks could be a simple but very powerful way to build a steady stream of passive income over time. But you may want to pay close attention to a company’s fundamentals and financial base before adding it to your portfolio. And the real value comes from companies that can consistently maintain and grow their payouts. For Tax-Free Savings Account (TFSA) investors, finding that balance between yield and reliability is key.
In this article, I’ll take a closer look at one such stock that I find really attractive for its strong income potential and consistent performance.
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A top TFSA dividend stock to buy
MCAN Mortgage (TSX:MKP), also known as MCAN Mortgage Financial Group, is a Canadian mortgage investment corporation that focuses on generating income through a diversified portfolio of residential, construction, and commercial mortgages. Its business model is straightforward but effective. After climbing 39% over the last 12 months, its stock currently trades at $23.92 per share with a market cap of $973 million. At this market price, it offers a juicy dividend yield of 7.2%, paid quarterly.
A closer look at its financials
MCAN Mortgage delivered a solid performance in 2025 despite a changing interest rate environment. The company posted net income of $74.9 million for 2025, down just 3% year-over-year (YoY). Its net interest income slipped only 1% YoY to $95.8 million, showing the resilience of its core operations.
Lately, a key growth driver for MCAN has been strong mortgage originations. Uninsured residential mortgage originations rose by 33% YoY, while insured residential mortgages increased by 38%. This pushed its total residential mortgage portfolio to $4.6 billion, up 26% from the previous year. Meanwhile, its construction and commercial mortgage balances grew 5% to $1.2 billion.
Meanwhile, the company’s investment in MCAP Commercial LP also played an important role, contributing $33.4 million in income in 2025 – reflecting a solid 16% increase from 2024. This growth was supported by higher securitization income and lower interest expenses. MCAP continues to be a valuable strategic partner for the company.
Long-term growth initiatives
Despite macroeconomic uncertainties, MCAN Mortgage continues to invest in its future. The company is focusing on new product development and infrastructure improvements to support sustainable growth. It recently launched a new securitization program to diversify its funding sources, which should help it better manage changing market conditions.
Moreover, strong growth across all mortgage portfolios, including record uninsured originations, highlights its ability to adapt and expand even in a challenging environment.
Interestingly, MCAN declared a first-quarter 2026 dividend of $0.43 per share, a 5% increase from the previous quarter. This reflects its commitment to rewarding shareholders and maintaining a reliable income stream. With a dividend yield of 7.2%, steady financial performance, and ongoing growth initiatives, MCAN Mortgage stands out as an attractive TFSA stock for income-focused investors.
