Most high-yield dividend stocks often come with a catch, which is why Foolish investors must look a little closer at their business fundamentals and financials before jumping in. But the TSX-listed stock I want to highlight here is a bit different. It’s currently offering a yield above 7%, but the real story is what’s happening behind the scenes.
Over the past year, this company has gone through a meaningful shift, reshaping its business and starting to lean more into areas that could drive stronger returns over time. Despite all this, the stock has stayed relatively quiet so far this year, which could mean the market hasn’t fully caught on yet. Let’s take a closer look at what’s changed and why 2026 could be an important year for this dividend stock.
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A transformed financial platform after a major deal
The company I want to highlight here is RFA Financial (TSX:RFA). It isn’t the same business it was a year ago. Before February 2026, it operated as RFA Capital Holdings. But after completing its merger with Artis Real Estate Investment Trust, the company rebranded to RFA Financial and significantly expanded its scale.
Today, it operates as a diversified financial platform with three main segments: banking, mortgage lending, and commercial real estate, anchored by RFA Bank of Canada, a federally regulated Schedule I bank. Along with that, it also runs a growing mortgage origination and servicing business, while also owning a large portfolio of commercial properties across Canada and the United States.
After declining nearly 8% over the last month, RFA stock currently trades at $23.56 with a market cap of about $1.1 billion. It also offers a 7.2% dividend yield at this market price, paid quarterly.
Its evolving business model
What makes RFA more interesting right now is what it’s doing with its assets. The company is actively shifting its strategy to recycle capital from real estate into higher-return financial services businesses. Instead of just holding properties for steady income, it’s unlocking value and redeploying that capital where returns could be stronger.
This could create a more flexible model because while real estate can provide stability, lending and banking can drive long-term growth.
At the same time, its deposit products, including guaranteed investment certificates (GICs), help attract customers looking for safety and predictable returns. That supports funding for its lending operations and keeps the overall platform balanced.
Real execution already underway
More importantly, RFA Financial’s strategy is already being put into action. In March, RFA highlighted more than $340 million in asset sales and agreements. This included completed transactions worth $60.4 million, along with additional deals in progress.
Some of these assets were sold above their previously reported values. That’s a strong signal that the underlying real estate portfolio still holds solid value –even in an uncertain macroeconomic environment. Over time, this capital rotation could improve its returns and shift the company toward a more scalable earnings base.
A near-term catalyst to watch
While the long-term transformation is important, the next key moment for RFA is coming soon as it’s set to release its first-quarter earnings on May 12, after market close. This will be one of the first reports reflecting the combined business after the Artis deal. That makes it even more important, as it could give investors a clearer picture of how the integration is progressing.
If the results show early momentum, I expect it to act as a catalyst for RFA stock.
Why this dividend stock could gain momentum in 2026
Currently, with RFA stock still not widely followed, you have a dividend-paying company that has gone through a major transformation, is actively executing its strategy, and is signalling confidence through share buybacks – all while offering a strong dividend yield.
For investors willing to look beyond the obvious dividend stocks, RFA Financial could be one of those under-the-radar stocks worth watching closely in 2026.
