Atrium Mortgage Investment (TSX:AI) is a Toronto-based non-bank lender that provides financing solutions to real estate communities in Ontario, Alberta, and British Columbia. Canada’s housing market has been throttled as the Bank of Canada (BoC) has pursued an aggressive interest rate tightening policy. Despite that, Atrium Mortgage is a dividend stock that still looks like a strong hold in the later winter season.
This company released its final batch of fiscal 2022 earnings on February 14, 2023. Atrium put together a record-breaking quarter in the face of a tough real estate market. The company achieved total revenue of $78.3 million for the full year compared to total revenue of $64.2 million for the fiscal year in 2021. Meanwhile, basic and diluted earnings per share (EPS) were reported at $1.08 and $1.06, respectively – up from $0.98 basic and diluted EPS in the prior year.
Net income increased 10.9% year-over-year to an all-time high of $46.3 million. Moreover, its gross mortgage portfolio hit a record high of $866 million – up 12.9% compared to its portfolio as at December 31, 2021. Better yet, the mortgage portfolio itself was of high quality. First mortgages made up 92.5% of the portfolio and 97.1% of the portfolio is less than 75% loan to value. Indeed, it boasts a very solid average loan-to-value of 59.4%.
Shares of Atrium currently possess a favourable price-to-earnings ratio of 11. Meanwhile, it offers a monthly dividend of $0.075 per share. That represents a very tasty 7.4% yield.