Image Source: DepositPhotosTimbercreek Financial Corp is a Canada-based non-banking commercial real estate lender. The company provides shorter-duration, customized financing solutions to professional real estate investors.It invests directly in a diversified portfolio of structured mortgage loans predominantly secured by stabilized, income-producing commercial real estates, such as multi-residential, office and retail buildings located in urban markets across Canada.The company’s objective is to preserve investor capital and provide risk adjusted returns by lending mainly against income producing real estate, mitigate concentration risk by diversifying geographically by asset type and borrower, and ensure loan to value ratios.The company was founded in 2016 and is headquartered in Toronto, Canada.Three key data points gauge Timbercreek or any dividend paying firm.The key three are:(1) Price(2) Dividends(3) ReturnsThose three keys also best tell whether any company has made, is making, and will make money. TBCRF PriceOver the past year, Timbercreek’s share price rose about 9.26% from $5.29 to $5.78 as of Thursday’s market close. In the past four years the company’s share price has never been less than $4.25 nor higher than $8.00If TBCRF shares trade in the range of $5.50 to $7.50 this next year, the recent $5.78 share price might rise by $0.47 to $6.25 in a year. Of course, TBCRF price could also drop about the same $0.47 estimated amount, or more.My $0.47 upside estimate is $0.02 below the annual gain over the past year.
TBCRF Dividend
Timbercreek has paid monthly variable dividends paid since November 2019. The most recent $0.0426 M dividend was declared August 22nd for shareholders of record August 30th and is payable September 13th. That forward looking $0.51 annual dividend yields 8.84% at Thursday’s closing price. TBCRF ReturnsPutting it all together, a $0.98 estimated one year gross gain per share shows up when adding Timbercreek’s $0.51 estimated annual dividend to the estimated price upside of $0.47, equaling that $0.98 gross gain per share.A little over $1000 buys us 129 shares at the $5.78 share price.A $10 broker fee (if charged), paid half at purchase and half at sale, might take about $0.0775 per share out of the $0.98 annual estimated gross-gain to give us a net gain of $0.9025 X 129 shares = $116.42 for about a 11.5% estimated net gain for the year.Furthermore, the $88.40 annual dividend income from $1K invested is over 15 times more than Timbercreek’s $5.78 single share price. By these numbers, Timbercreek may be an ideal dividend dog.You might choose to pounce on Timbercreek Financial Corp. It is a 8 year-old monthly dividend-paying Toronto-based mortgage and investment firm with a 5 year record paying monthly dividends.The exact track of TBCRF future price and dividend will entirely be determined by market action.Remember the true value of any stock is best realized through personal ownership of shares.More By This Author:Current Report: First National Financial
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