Dividend investing works best when you can find companies that quietly deliver strong returns without creating too much noise. While popular growth stocks tend to dominate day-to-day headlines, dependable dividend payers with solid fundamentals can create meaningful long-term wealth through a combination of passive income and capital appreciation.
That’s especially true today, when many investors are looking for stable businesses capable of generating reliable cash flow amid escalating geopolitical tensions and an uncertain macroeconomic environment. One TSX stock that appears to be gaining momentum on both fronts is MCAN Mortgage (TSX: MKP).
With a high dividend yield, improving financial performance, and steady growth initiatives, the company looks like a top income pick for 2026. In this article, I’ll explain why MCAN Mortgage could deserve a closer look from long-term investors right now.
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MCAN Mortgage stock
To put it simply, MCAN Mortgage operates as a Canadian mortgage investment firm with exposure to residential, construction, and commercial lending markets. Its business model focuses on generating stable income through a diversified portfolio of Canadian mortgages while maintaining disciplined underwriting standards.
MKP stock has climbed by nearly 29% over the last 12 months due mainly to growing investor confidence in its business and income potential. With this, it currently trades at $24.60 per share with a market capitalization of slightly more than $1 billion. At this market price, the company offers a juicy dividend yield of 7.1%.
Strong financial growth is supporting investor confidence
One of the biggest factors behind MCAN Mortgage’s recent strength has been the continued expansion of its mortgage portfolio. Through its divisions like MCAN Home, MCAN Capital, and MCAN Wealth, the company has maintained steady mortgage originations while also growing its uninsured securitization business.
Its strategic partnership with MCAP has also played a major role in supporting growth. In the first quarter, MCAP’s income rose by 43% year-over-year (YoY), boosting shareholder returns and strengthening profitability.
Overall, MCAN Mortgage’s net interest income rose by 8% YoY, supported by continued mortgage portfolio growth. Its net profit surged 39% from a year ago as stronger equity income from MCAP and realized gains on securities boosted results.
The company’s return on equity reached 14.2% in the latest quarter, reflecting efficient capital management and strong profitability. Meanwhile, its assets under management also increased significantly, climbing 35% to $8.3 billion.
Disciplined lending standards could support long-term stability
Interestingly, MCAN Mortgage’s residential mortgage assets are also continuing to grow. Its uninsured residential mortgage balances have risen 4% year-to-date to reach $4.7 billion. Similarly, its construction and commercial mortgage balances also expanded to $1.2 billion.
At the same time, the company maintains a disciplined approach to risk management. Despite economic uncertainty, MCAN Mortgage’s average loan-to-value ratio remained conservative at 67.4% for uninsured residential mortgages and 60.8% for construction loans.
Why MCAN Mortgage stock could be a top dividend pick for 2026
Going forward, MCAN Mortgage continues focusing on long-term growth initiatives, including expanding the company’s uninsured residential mortgage securitization program and investing in infrastructure designed to support sustainable growth.
For income-focused investors, the combination of a 7.1% dividend yield, rising assets under management, and disciplined lending standards clearly makes it an attractive dividend stock to buy and hold in 2026 and beyond.
