Income investors love two things: a fat yield and a paycheque that shows up every single month instead of once a quarter.
Firm Capital Mortgage Investment Corporation (TSX: FC) offers both. At the time of writing, the TSX dividend stock trades at $11.89 and offers shareholders a forward yield of 8.3%.
Firm Capital offers a generous payout compared to other Canadian dividend stocks. But a high yield only matters if the underlying payout is well-covered and sustainable.
So, before you add this monthly dividend stock to your watchlist, let me walk through what this company does, how its numbers looked last quarter, and where the risks sit.
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The Canadian dividend stock is a mortgage lender
Firm Capital Mortgage Investment Corporation is a mortgage investment corporation. Basically, it pools shareholder capital and lends it out as mortgages through its manager, Firm Capital Corporation, a nonbank lender that has operated in Canada since 1988.
Rather than owning buildings, the company provides loans secured against real estate: residential, commercial, and construction projects that traditional banks often pass on. Its total advanced mortgage portfolio stood at $585.7 million, spread across 229 investments, carrying an average interest rate of 9.38%.
- Around 90% of the loan book is tied to conventional first mortgages, the safest tier of mortgage lending, as those loans get repaid first if a borrower defaults.
- Another 5% is tied to conventional non-first mortgages, with the remaining slice split between debtor-in-possession loans, non-conventional loans, and a small basket of related debt investments.
- Around 93% of the portfolio carries a floating interest rate, so income tends to rise when the Bank of Canada raises rates and fall when rates are cut.
- Further, 85% of the portfolio matures within the next 12 months. That is short-duration lending, which lets the company reprice loans quickly, but it also means the manager has to keep finding new borrowers to replace maturing loans, quarter after quarter.
For the three months ended March 31, 2026, net income dropped 13.7% to $8.6 million, down from $9.97 million in the year-ago period. Its adjusted earnings fell to $0.234 per share from $0.271 per share last year.
The investment portfolio, measured on a gross basis, shrank 6.2% to $572.8 million as of March 31, 2026, from $610.9 million at the end of December 2025.
New investment funding totaled just $25.8 million in the quarter, a sharp slowdown from $70.2 million a year earlier, while repayments of $63.9 million outpaced new lending. The allowance the company sets aside for expected credit losses and fair value adjustments held steady at $36.8 million.
Conventional first mortgages made up 94.9% of the portfolio as of March 31, 2026, only slightly below the 95.2% reported at the end of 2025.
Regionally, the book stays concentrated in Ontario, which accounts for 88.3% of holdings, with Quebec at 6.8% and the rest scattered across western Canada, eastern Canada, and a sliver in the United States.
The board declared monthly cash dividends of $0.078 per share for July, August, and September 2026, payable on August 17, September 15, and October 15, respectively.
For the first quarter of 2026, the company declared $8.6 million in dividends, or $0.234 per share, almost identical to the $8.59 million declared in the same quarter of 2025.
My take on this monthly dividend stock
Firm Capital is a name built for income investors who want cash flow they can count on every month. The near 8.5% yield, the short average loan life, and the heavy tilt toward first mortgages all point to a business designed around capital preservation rather than growth.
That said, the slowdown in new lending and the double-digit drop in quarterly net income are worth watching closely over the next couple of quarters.
A shrinking portfolio can eventually pressure the dividend if it continues. For now, the payout looks intact, and the underlying loan book remains conservatively structured, but this is a stock to monitor rather than set and forget.
