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Summary
- Atrium Mortgage investment Corp, a residential and commercial lending firm, has a dividend yield of 7.78% based on Monday’s closing price.
- Manulife Financial Corp., an insurance and wealth management services provider, has a dividend yield of 5.56% based on Monday’s closing price.
- IGM Financial Inc., a financial management products and services provider, has a dividend yield of 5.46% based on Monday’s closing price.
Financial sector stocks include companies from the banking, financial services and investment industries. Most companies belonging to this sector drive revenue from mortgages and loans. Some of the top players in the Canadian financial sector include the country’s enormous banks such as The Bank of Montreal and The Royal Bank of Canada.
The Canadian central bank has conducted an interest hike to fight inflation, leading to major banks and financial institutions benefitting from higher lending rates. However, other non-banking financial institutions have also remained buoyant in the market.
Here is a closer look at three financial sector stocks that provide attractive dividend income.
Atrium Mortgage investment Corp (TSX: AI)
Atrium is a non-bank financing firm that focuses on residential and commercial lending across urban Canada. The investment company chooses those lending areas that can offer stable returns and have higher degree of liquidity.
The company reported net income of CA$14.2 million during Q1 2023, which marked a jump of 34.1% over the previous corresponding period. Meanwhile, its basic earnings per share were CA$0.33 in Q1 2023, as against CA$0.25 in Q1 2022. Atrium’s revenue during the quarter was CA$23.7 million, compared to CA$16.37 million in Q1 2022.
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The stock closed the market 0.52% higher on August 1, 2023, as compared to the previous close. Based on Monday’s closing price of CA$11.57, AI has a P/E ratio of 10.19x. Atrium will be paying a dividend of CA$0.075 per common share on August 11, 2023.
The stock has a dividend yield of 7.78% based on Monday’s closing price.
Manulife Financial Corp. (TSX: MFC)
Manulife provides insurance and wealth management services and is among one of Canada’s Big Three Life Insurance companies.
For Q1 2023, Manulife reported total revenue of CA$30.04 billion, as compared to negative CA$16.57 billion in Q4 2022. Manulife also reported net income attributable to stockholders of CA$1.35 billion.
Based on MFC’s closing price of CA$26.26, the stock has a P/E ratio of 9.11x. At the end of trade on August 1, 2023, the stock saw a monthly gain of 5.67%.
MFC has a dividend yield of 5.56% based on Monday’s closing price.
IGM Financial Inc. (TSX: IGM)
IGM, a part of the Power Financial group of companies, provides financial management products and services. The company operates through two major segments: asset management and wealth management.
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For Q1 2023, IGM reported revenue of CA$934.05 million, as against CA$772.135 million in Q1 2022. The net earnings for the quarter were CA$382.501 million, as compared to CA$220.165 million in Q1 2022.
IGM’s assets under management at May 31, 2023 were CA$256.6 million.
Based on IGM’s closing price of CA$41.21 on August 1, 2023, the stock has a P/E ratio of 9.57x.
Its dividend yield based on Monday’s closing price is 5.46%.
