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First National Financial Corp (FNLIF) is a Canadian originator, underwriter, and servicer of predominantly prime residential and commercial mortgages.

The Company operates in two business segments, Residential and Commercial. These segments are organized by mortgage type and contain revenue and expenses related to origination, underwriting, securitization, and servicing activities.

It derives maximum revenue from the Residential segment.

It provides its services through mortgage broker distribution channels, as well as online.

The company was founded in 1988 and is headquartered in Toronto, Canada.

Three key data points gauge First National or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

Those three keys also best tell whether any company has made, is making, and will make money.

FNLIF Price

Over the past year, First National’s share price rose about 5% from $26.04 to $27.32 as of Wednesday’s market close. In the past fifteen years, the company’s share price has never been less than $13.60 nor more than $43.21.

If FNLIF shares trade in the range of $24.00 to $30.00 this next year, the recent $17.32 share price might rise by $1.33 to $28.65 in a year. Of course, FNLIF price could also drop about the same $1.33 estimated amount or more.

My $1.33 upside estimate is $0.02 below the annual gain over the past nine years.

FNLIF Dividend

First National shows monthly variable dividends paid since December 2010. The most recent $0.1513 M dividend was declared August 15th for shareholders of record August 30th and is payable September 16th. That forward-looking $1.82 annual dividend yields 6.65% at Wednesday’s closing price.

FNLI Returns

Putting it all together, a $3.15 estimated one-year gross gain per share shows up when adding Firm Capital’s  $1.82 estimated annual dividend to the estimated price upside of $1.33, equaling that $3.15 gross gain per share.

A little over $1000 buys us 37 shares at the $27.32 share price.

A $10 broker fee (if charged), paid half at purchase and half at sale, might take about $0.27 per share out of the $3.15 annual estimated gross gain to give us a net gain of $2.88 X 37 shares = $106.56 for about a 10.5% estimated net gain for the year.

Furthermore, the $66.50 annual dividend income from $1K invested is almost 2.5 times more than First National’s $27.32 single share price. By these numbers, First National may be an ideal dividend dog.

You might choose to pounce on First National Financial Corp. It is a 36-year-old monthly dividend-paying Toronto-based mortgage and investment firm with almost a 15-year record paying monthly dividends.

The exact track of FNLIF's future price and dividend will entirely be determined by market action.

Remember the true value of any stock is best realized through personal ownership of shares.

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