Life & Banc, Canadian Banc And MCAN Mortgage: Why Are These Top Dividend-Paying Financial Stocks Trending?

Summary

• Stocks of asset management company Life & Banc stocks gained nearly 70 per cent up in the last six months.
• Canadian Banc stocks rebounded by about 45 per cent in the last eight months since the coronavirus pandemic-led market meltdown in March.
• Since its value plummeted during the COVID-triggered lows in March, MCAN Mortgage stock surged over 31 per cent in the last six months and almost 18 per cent in the last three months.

Life & Banc Split Corp (TSX:LBS), Canadian Banc Corp (TSX:BK) and MCAN Mortgage (TSX:MKB) are currently trending high among the Toronto Stock Exchange’s top dividend-paying stocks. The financial stocks currently post significant dividend yields.

Investors often sought after stocks that come with the promise of a regular dividend payout, especially during crisis times like the coronavirus pandemic. However, one needs to understand that a company can choose to stop paying dividends at any point by making an official announcement.

The S&P/TSX Canadian Dividend Aristocrats Index is down 7.72 per cent this year, though it has jumped 9.73 per cent quarter-to-date. Let’s take a closer look at the top dividend-paying financial stocks of Life & Banc Split Corp, Canadian Banc Corp and MCAN Mortgage.

Life & Banc Split Corp (TSX:LBS)

Current Monthly Dividend: C$ 0.10

This asset management company operates in mutual funds. It invests in equity to offers its unitholders fixed aggregate preferential quarterly cash distributions and provides monthly dividends to its common stockholders.

The company holds a dividend yield of 17.699 per cent and its stock is trading at C$ 6.86, as per the data available on the TSX.

As per Life & Banc’s recent exchange filing, cash payment may be offered to the class A stocks if, after payment of the distribution, the net asset value per unit is greater than C$ 15. The mutual fund company assesses its net asset value per unit every month to check whether it meets the above condition to determine if dividend will be declared.

Life & Banc Stock Performance

Life & Banc stocks gained nearly 70 per cent up in the last six months. However, its year-to-date (YTD) stock performance is down by almost 15 per cent.

The financial stock made it to TMX Money’s top dividend-paying stock list among stocks with the highest dividend yield on the TSX and Toronto Stock Exchange Venture (TSXV). It has also been ranked among TMX’s top financial stocks trending with the highest price gain across the TSX and TSXV in the last 30 days.

The stock’s price-to-book (P/B) ratio is 0.684 and its price-to-cash flow ratio is 9.8, according to data available on the TMX website.

Canadian Banc Corp. (TSX:BK)

Current Monthly Dividend: C$ 0.056

The financial company manages mutual fund portfolios and primarily invests in stocks of top Canadian banks such as Toronto-Dominion Bank, Bank of Nova Scotia, Royal Bank of Canada, etc. to pay its unitholders monthly dividends.

The mutual fund company has a current dividend yield of 7.477 per cent and its stock is trading at C$ 9.05, as per TMX Group.

Canadian Banc Corp Stock Performance

The blue-chip stock rebounded by about 45 per cent in the last eight months since the coronavirus pandemic-led market meltdown in March. The Canadian Banc Corp scrip surged nearly 46 per cent in the last six months, though it declined by about 10 per cent year-to-date (YTD).

Apart from trending among highest dividend yield stocks on the TSX and TSXV, Canadian Banc Corp also made it to TMX’s top financial services with the highest price gain in the last 30 days.

The stock’s current profit-to-book (P/B) ratio is 1.408 and its price-to-cash flow ratio is 12.3, as per data available on the TMX portal.

MCAN Mortgage (TSX:MKB)

Current Quarterly Dividend: C$ 0.34

MCAN Mortgage invests its funds in a portfolio of mortgages to generate a consistent stream of revenue. The company earns most of its revenues from mortgage income and equity investments.

While its current dividend yield is 8.468 per cent, MCAN Mortgage has a five-year dividend growth of 3.7, as per TMX Group. The blue-chip stock is trading at C$ 16.42.

MCAN Stock Performance

Since its value plummeted during the COVID-triggered lows in March, MCAN Mortgage stock surged over 31 per cent in the last six months and almost 18 per cent in the last three months. However, the shares declined by about four per cent this.

MCAN Mortgage is also sailing near the top of TMX Money’s top dividend-paying companies. Its stock delivers a positive return on equity (ROE) at 9.5 per cent and a positive return on assets (ROA) at 1.32 per cent. The stock’s price-to-book (P/B) ratio is 1.22, price-to-earnings (P/E) ratio is 12.6, and price-to-cash flow ratio is 62.9. Its current debt-to-equity (D/E) ratio stands at 0.08 and earnings per share (EPS) amounts to C$ 1.28, as per the data on the TMX portal.