Monthly Dividend Stock In Focus: Firm Capital Mortgage Investment Corp.
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Monthly dividend stocks have instant appeal for many income investors. Stocks that pay their dividends each month offer more frequent payouts than traditional quarterly or semi-annual dividend payers.
For this reason, we created a full list of over 100 monthly dividend stocks.
You can download our full Excel spreadsheet of all monthly dividend stocks (along with metrics that matter like dividend yields and payout ratios) by clicking on the link below:
Firm Capital Mortgage Investment Corp. (FCMGF) is a monthly dividend stock with a high yield. This potentially makes the stock more attractive for income investors looking for more frequent dividend payouts.
This article will analyze Firm Capital Mortgage Investment in greater detail.
Business Overview
Firm Capital Mortgage Investment Corporation is a Toronto-based, non-bank mortgage lender. It operates as a mortgage investment corporation (MIC) under the Canadian Income Tax Act.
Through its affiliated mortgage banker Firm Capital Corporation, it originates, funds, purchases, and services a diversified portfolio of short-term residential and commercial real estate loans across Canada, including bridge and term mortgages, construction financing, mezzanine loans, and selected equity or participating debt structure.
On November 4th, 2025, Firm Capital Mortgage Investment Corporation reported its Q3 results. Total revenue was $12.0 million, down about 12% year-over-year, as lower special income, a reduced average portfolio balance, and a slight decline in portfolio yield offset stable fee income.
Interest revenue again dominated results, with more than 90% of income generated from Firm’s short-term mortgage portfolio. The investment portfolio stood at $445.3 million, 93% composed of first mortgages, with a weighted-average rate of 9.61%.
Net income grew 1% to $6.46 million, and EPS was $0.18, essentially unchanged from the prior year as lower revenue was balanced by reduced interest expenses and a smaller fair-value and credit-loss provision.
Management reiterated its conservative underwriting approach and expects steady earnings through the rest of 2025, with roughly one-third of the loan portfolio set to mature by year-end. We expect FY2025 EPS of $0.72.
Growth Prospects
Firm Capital’s earnings have been very steady over the past decade, reflecting its conservative, income-focused lending model.
Note that there has been a modest devaluation of the CAD relative to the USD during this period, which has also dragged results slightly downward in USD terms.
Regardless, from 2015 to 2017, EPS rose due to the mortgage portfolio expanding and interest income increasing, driven by a growing book of short-term, high-yield real estate loans.
Results softened in 2018 due to lower special income and minor fair-value adjustments, before rebounding in 2019 on robust portfolio growth and stable credit performance.
In 2023, Firm Capital benefited from a larger portfolio and higher rates, but 2024 saw a modest decline as yields normalized, specific allowances rose, and a new equity issue slightly diluted per-share earnings.
Dividend & Valuation Analysis
Firm Capital Mortgage Investment Corporation has historically paid out the majority of its earnings, which explains why the payout ratio hovers close to 100%.
The dividend’s safety stems from its prudent underwriting and short-duration mortgage portfolio, which allows it to quickly reprice loans and manage risk in changing rate environments.
Also, credit quality remains high, supported by low loan-to-value ratios, diversified exposure across property types, and minimal historical losses.
Firm Capital Mortgage Investment Corporation has historically traded at a P/E in the low teens. Given the rather stable dividend paid monthly, it seems that investors are basically pricing the stock based on its underlying yield, which has averaged at 7.3% over the past decade. We have set our fair multiple at 12x EPS.
With a P/E of 12.5, shares are slightly overvalued. A declining valuation multiple could reduce annual returns by 0.9% per year over the next five years.
Adding in no expected EPS growth and the 7.4% dividend yield, we expect total returns of 5.9% per year over the next five years.
Final Thoughts
Firm Capital seems like a disciplined, income-focused lender with a long and proven track record of capital preservation and steady profitability.
It offers investors a reliable dividend and resilience through economic cycles despite the lack of growth potential.
We forecast annualized returns of 7.5% over the medium term, powered by the dividend, offset by a soft valuation headwind.
Still, we rate the stock a sell due to the lack of active dividend growth.
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