I like dividends, but I like them even more when I don’t have to wait three months to get paid. That is what made one Canadian stock stand out for me recently. It currently yields nearly 8%, and instead of sending shareholders four payments a year, it pays every month. Put $10,000 into the stock at its current yield, and you are looking at roughly $66 in average monthly dividend income. That starts to feel a little like having a tiny ATM sitting inside your portfolio.
Of course, I would never buy a stock simply because the yield looks good. Its earnings have softened lately, and the company’s mortgage portfolio has shrunk as borrowers repay loans faster than new ones are being issued. But its conservative lending standards, falling borrowing costs, and expectations for renewed loan growth make it considerably more interesting to invest in right now.
In this article, I’ll dig into this 7.9%-yielding Canadian monthly dividend stock and explain why I find it attractive to buy right now.
man withdraws money from ATM
Atrium stock
The monthly dividend stock behind that 7.9% yield is Atrium Mortgage Investment (TSX: AI), which could turn a relatively small investment into a recurring stream of cash every month. If you don’t know it already, this Toronto-based firm is a non-bank lender that provides residential and commercial mortgages in major Canadian urban markets. It mainly focuses on borrowers whose financing needs may not be fully met by larger financial institutions.
Atrium stock recently closed at $11.76 per share with a market cap of $568 million. The stock currently offers a 7.9% annualized dividend yield and distributes its regular dividend monthly.
That steady payout is backed by a portfolio that management continues to run conservatively. At the end of June, 96.9% of Atrium’s mortgage portfolio was invested in first mortgages. About 90.5% was below 75% loan-to-value, while the weighted average loan-to-value stood at 62.5%.
Recent earnings and portfolio trends
Atrium generated second-quarter revenue of $18.7 million, down 11.8% year-over-year (YoY). The company’s net income fell 10.5% YoY to $11.7 million, while basic earnings came in at $0.24 per share compared with $0.28 a year ago.
For the first six months of 2026, revenue declined 10.7% YoY and net income slipped 5.1%. Atrium pointed to a still-subdued lending environment, while the mortgage portfolio also shrank because repayments exceeded new advances.
Even so, Atrium advanced $132.9 million of mortgage principal during the first half, while $186.4 million was repaid or transferred. Its mortgage portfolio stood at $860.1 million at the end of June, down from $917.1 million at the end of 2025.
Why this monthly income stock still looks attractive
For investors treating Atrium like a monthly income machine, the company’s future plans matter just as much as its current yield.
Atrium expects repayment activity to moderate through the rest of 2026. It also opened a new Alberta office in April and expects that expansion to support stronger loan originations from Western Canada during the second half of the year. Its management also expects the mortgage portfolio to climb back above $900 million by year-end.
Borrowings under Atrium’s $380 million credit facility also fell to $224.1 million by June, leaving the company with large available capacity. At the same time, its weighted-average borrowing cost declined to roughly 4.7% in the second quarter, down from 5.1% a year ago.
Atrium has already declared monthly dividends of $0.078 per share for October, November, and December 2026. That regular payout, coupled with its 7.9% annualized yield, conservative mortgage profile, and expected recovery in loan activity, makes Atrium an attractive stock for investors seeking dependable monthly passive income.
