Is it a good company at a reasonable price? This is a different sort of company from what I usually invest in. I only have this stock in the registered accounts because the dividends are treated as Interest Income. I was attracted to it because of the income. It will not produce much in the way of capital gains, but the income it produces is rather high. My testing is showing that the current stock price is in the reasonableness range.
I own this stock of Atrium Mortgage Investment Corp (TSX-AI, OTC-AMIVF). I saw this on company on the Canadian Dividend All-Star List. It has just recently started to pay dividends. It has only been around since 2012 and has good dividends. It has just recently started to pay dividends and dividends are good but are taxed as income.
When I was updating my spreadsheet, I noticed I have done well with this stock in terms of income. I have had it for 8 years and my Total Return is 10.51% with 0.95% from capital gains and 10.51% from Interest Income. Because all the dividend income is classified and interest, this is a stock you should hold in a registered account. If you had invested in this company in December 2015, for $1,003.20 you would have bought 88 shares at $11.40 per share. In December 2025, after 10 years you would have received $885.72 in dividends. The stock would be worth $1,019.04. Your total return would have been $1,904.76. This would be a total return of 8.88% per year with 0.16% from capital gain and 8.65% from dividends.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $11.40 | $1,003.20 | 88 | 10 | $885.72 | $1,019.04 | $1,904.76 |
The current dividend yield is high with dividend growth low. The current dividend yield is high (7% and higher) at 7.85% for the regular dividend. If you include the special dividend, which has been paid every year since 2019, the yield is 9.21%. The 5, 10 and historical dividend yields are also high at 7.99%, 7.35% and 7.25%. If you include the special dividends, then the 5, 10 and historical dividend yields are also high at 9.91%, 8.17% and 7.84%.
The dividend increases are low (below 8% per year) at 0.66% per year over the past 5 years. If you include the special dividends, the dividend increases are 2.6% per year. The last regular dividend increase was for 3.3% in 2025. If you took at total dividends, the special dividend has been declared for 2026, but the special dividend is lower than last year, so total dividends have declared in 2026 by 2.8%.
The Dividend Payout Ratios (DPR) appear high, but they can afford to pay out their income in dividends. The DPR for 2025 for Earnings per Share (EPS) is too high at 106% with 5 year coverage at 101%. However, if you look at Cash Dividends paid from Net Income, the DPR is still high but it is better at 90% and with 5 year coverage better at 86%. The DPR for 2025 for Adjusted Earnings per Share (AEPS) is high at 64% with 5 year coverage at 61%.
The DPR for 2025 for Cash Flow per Share (CFPS) is good at 14% with 5 year coverage at 14%. The DPR for 2025 for Free Cash Flow (FCF 1) is high at 74% with 5 year coverage at 67%. The DPR for 2025 for Free Cash Flow (FCF 2) is high at 71% with 5 year coverage at 68%. But, because of the structure of this business, they can afford to pay out all their income and they are using special dividends to do this. Note that these dividends are taxed as Interest Income.
| Item | Cur | 5 Years |
|---|---|---|
| EPS | 105.83% | 100.95% |
| Cash Div | 90.03% | 85.83% |
| CFPS | 63.74% | 60.95% |
| FCF 1 | 74.37% | 67.38% |
| FCF 2 | 70.83% | 67.79% |
The Long Term Debt/Market Cap Ratio for 2025 is fine at 0.64 and currently at 0.65. The Liquidity Ratio for 2025 is good at 2.21 and 2.21 currently. If you added in Cash Flow after dividends, the ratios are the result is negative because the cash flow cannot cover the dividend. The Debt Ratio for 2025 is good at 2.42 and 2.42 currently. The Leverage and Debt/Equity Ratios for 2025 are good at 1.70 and 0.70 and currently at 1.70 and 0.70.
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term R | 0.64 | 0.63 |
| Intang/GW | 0.00 | 0.00 |
| Liquidity | 2.21 | 2.21 |
| Liq. + CF | -10.48 | -10.48 |
| Debt Ratio | 2.42 | 2.42 |
| Leverage | 1.70 | 1.70 |
| D/E Ratio | 0.70 | 0.70 |
The Total Return per year is shown below for years of 5 to 16 to the end of 2025. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2020 | 5 | 2.57% | 6.84% | -1.75% | 8.60% |
| 2015 | 10 | 1.84% | 8.80% | 0.16% | 8.65% |
| 2010 | 15 | 3.36% | 8.13% | 1.05% | 7.08% |
| 2009 | 16 | 7.41% | 0.98% | 6.42% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are 9.88, 10.83 and 11.51. The corresponding 10 year ratios are 10.47, 11.85 and 13.53. The corresponding historical ratios are 11.58, 12.37 and 13.45. The current ratio is 11.61 based on a stock price of $11.84 and EPS estimate for 2026 of $1.02. The current ratio is between the low and median ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get a Graham Price of $15.86. The 10-year low, median, and high median Price/Graham Price Ratios are 0.68, 0.77 and 0.87 based on a stock price of $11.84. The current ratio is between the low and median ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get a 10-year median Price/Book Value per Share Ratio of 1.12. The current ratio is 1.08 based on a stock price of $11.84, Book Value of $525M and Book Value per Share of $10.96. The current ratio is 3.5% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I also have a Book Value per Share estimate for 2026 of $11.00. This implies a ratio of 1.08 based on a stock price of $11.84 and Book Value per Sare of $527M. This ratio is 3.9% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get a 10-year median Price/Cash Flow per Share Ratio of 9.77. The current ratio is 32.68 based on Cash Flow per Share for the last 12 months of $0.36, Cash Flow of $17.4M and a stock price of $11.84. The current ratio is 235% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. Note that Cash Flow fell by 75% between 2024 and 2025. This is the reason for the expensive rating.
I get an historical median dividend yield of 7.25%. The current dividend yield is 7.85% based on dividends of $0.93 and a stock price of $11.84. The current dividend yield is 8% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get a 10 year median dividend yield of 7.39%. The current dividend yield is 7.85% based on dividends of $0.93 and a stock price of $11.84. The current dividend yield is 6% above the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively reasonable and below the median.
The 10-year median Price/Sales (Revenue) Ratio is 7.05. The current P/S Ratio is 6.64 based on Revenue estimate for 2026 of $85.4M, Revenue per Share of $1.78 and a stock price of $11.84. The current ratio is 5.7% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.
Results of stock price testing is that the stock price is probably reasonable. The dividend yield tests are saying the stock price is relatively reasonable and it is confirmed by the P/S Ratio test. Most of the rest of the testing, with one exception is saying the same thing.
When I look at analysts’ recommendations, I find Strong Buy (2) only. The consensus would be a Strong Buy. The 12 months stock price consensus is $13.06 with a high of $13.12 and a low of $13.00. The consensus stock price of $13.06 implies a total return of 18.16% with 10.30% from capital gains and 7.85% from dividends based on a current stock price of $11.84.
This stock is not much followed on Stock Chase with just one entry per year. However, analysts do think it is a buy. Amy Legate-Wolfe on Motley Fool see long term growth and dividends in this company. Christopher Liew on Motley Fool says to buy for the good dividend. The company put out a press release via TSX Money about their annual results for 2025.
Simply Wall Street via Yahoo Finance puts out a skimpy review on this stock. They have three warnings out on this company of debt is not well covered by operating cash flow; earnings are forecast to decline by an average of 1.3% per year for the next 3 years; and dividend of 7.85% is not well covered by earnings or free cash flows.
Atrium Mortgage Investment Corp is a mortgage investment corporation in Canada. The company is a provider of financing solutions to commercial real estate and development communities in urban centers in Ontario, British Columbia, and Alberta. The company generates its revenue from mortgage interest and fees and rental income. Its web site is here Atrium Mortgage Investment Corp.
The last stock I wrote about was about was Hydro One Ltd (TSX-H, OTC-HRNNF) ... learn more. The next stock I will write about will be BCE Inc (TSX-BCE, NYSE-BCE) ... learn more on Monday, April 13, 2026 around 5 pm.
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