Monthly Dividend Stock In Focus: Atrium Mortgage Investment Corporation

Updated on March 31st, 2025 by Felix Martinez

Atrium Mortgage Investment Corporation (AMIVF) has two appealing investment characteristics:

#1: It is a high-yield stock based on its  10.1% dividend yield.
Related: List of 5%+ yielding stocks.
#2: It pays dividends monthly instead of quarterly.
Related: List of monthly dividend stocks

You can download our full Excel spreadsheet of all 76 monthly dividend stocks (along with metrics that matter, like dividend yield and payout ratio) by clicking on the link below:

Combining a high dividend yield and a monthly dividend could make Atrium Mortgage Investment Corporation appealing to income-oriented investors. In addition, the company is the leading non-bank lender in Canada, and thus, it has a reliable business model. In this article, we will discuss Atrium Mortgage Investment Corporation’s prospects.

Business Overview

Atrium Mortgage Investment Corporation is a non-bank lender that provides residential and commercial mortgage services in Canada. The company offers various types of mortgage loans, such as land and development financing, construction and mezzanine financing, and commercial term and bridge financing services for residential, multi-residential, and commercial real estate properties. Atrium Mortgage Investment Corporation was founded in 2001 and is headquartered in Toronto, Canada.

Atrium Mortgage Investment Corporation invests in commercial and residential mortgages from customers who cannot borrow funds from traditional banking channels. To reduce its risk, the company has a diversified mortgage portfolio and does its best to maintain a disciplined underwriting policy.

A typical loan in the company’s portfolio has an interest rate of 6.99%- 12.99%, a duration of 1-2 years, and monthly mortgage payments. Atrium Mortgage Investment Corporation’s mortgage portfolio currently has a weighted average interest rate of 10.93%, consisting of 88% residential and 12% commercial mortgages.

Source: Investor Presentation

The company tries to reduce operating expenses and provide stable dividends to its shareholders with minimum volatility. To this end, it maintains a high-quality mortgage portfolio characterized by a conservative underwriting policy.

Thanks to its prudent management, Atrium Mortgage Investment Corporation has offered consistent returns to its shareholders over the last decade. During this period, the company’s return on equity has steadily remained 600-800 basis points above the yield of the Canadian government’s 5-year bond.

Thanks to its solid business model, Atrium Mortgage Investment Corporation has proved extremely resilient throughout the coronavirus crisis. This is impressive, as the pandemic would normally be expected to affect the company’s borrowers, who cannot borrow funds from large financial institutions. The resilience of Atrium Mortgage Investment Corporation to the pandemic is a testament to the strength of the company’s business model.

The company reported strong 2024 financial results, with a net income of $47.9 million and earnings per share of $1.06 (basic) and $1.05 (diluted), despite this being a 7.1% decline from 2023. The company maintained a high-quality mortgage portfolio, with 96.7% in first mortgages and an average loan-to-value ratio of 61.9%. A special dividend of $0.16 per share was declared, payable on March 19, 2025, bringing the total dividend for the year to $1.0625 per share.

Atrium reduced Stage 2 and 3 loans from $129.7 million in Q3 to $79 million in Q4 while expanding its credit facility by $25 million to $340 million and raising $28.8 million through an oversubscribed equity offering. Revenues declined 1.3% to $97.3 million, and total assets fell slightly to $864.3 million. The mortgage portfolio ended the year at $863.2 million, down from $876.7 million due to higher repayments.

With a weighted average interest rate of 9.98% and strategic shifts toward lower-risk lending, Atrium remains well-positioned for 2025. The company anticipates reduced competition from non-bank lenders and increased funding capacity to support growth. Following an OSC review, Atrium restated its 2023 cash flow statement without impacting overall financials.

Growth Prospects

Atrium Mortgage Investment Corporation has performed remarkably over the last nine years. Management’s focus on minimizing operating expenses and providing stable returns to shareholders has certainly paid off.

On the other hand, the company has posted essentially flat earnings per share over the last nine years. Therefore, investors should not expect meaningful earnings growth going forward. In other words, Atrium Mortgage Investment Corporation’s reliable performance comes at a price: lackluster growth prospects.

Given Atrium Mortgage Investment Corporation’s rock-solid business model and lackluster performance record, we expect approximately flat earnings per share five years from now.

Dividend & Valuation Analysis

Atrium Mortgage Investment Corporation is currently offering an exceptionally high dividend yield of 10.1%, many times the 1.3% yield of the S&P 500. The stock is thus an interesting candidate for income-oriented investors, but U.S. investors should be aware that the dividend they receive is affected by the prevailing exchange rate between the Canadian dollar and the USD.

Atrium Mortgage Investment Corporation has an elevated payout ratio of over 100%. However, it is in a strong financial position, with its interest expense currently consuming slightly less than 25% of its total interest and dividend income. As a result, the company is not likely to cut its dividend significantly anytime soon.

It is also remarkable that Atrium Mortgage Investment Corporation has maintained a solid dividend record over the last decade.

Source: Investor Presentation

Overall, shareholders should rest assured that Atrium Mortgage Investment Corporation’s base dividend is safe, and the company will likely continue paying a special dividend year after year.

On the other hand, the company has hardly grown its dividend in USD over the last ten years due to the depreciation of the Canadian dollar versus the USD. Given the low single-digit growth rate of the dividend in Canadian dollars, it is prudent for U.S. investors to expect minimum dividend growth going forward.

In reference to the valuation, Atrium Mortgage Investment Corporation has been trading for 10.2 times its earnings per share for the last 12 months. Given the company’s resilient business model and lackluster growth prospects, we assume a fair price-to-earnings ratio of 12.0 for the stock. Therefore, the current earnings multiple is slightly lower than our assumed fair price-to-earnings ratio. If the stock trades at its fair valuation level in five years, it will enjoy a 1.9% annualized return gain.

Taking into account the flat earnings per share, the 10.1% dividend yield, and a 1.9% annualized expansion of valuation level, Atrium Mortgage Investment Corporation could offer a 12% average annual total return over the next five years. This is a good expected total return, but we recommend waiting for a lower entry point in order to enhance the margin of safety and increase the expected return from the stock.

Final Thoughts

Atrium Mortgage Investment Corporation is characterized by prudent management and a defensive business model. In addition, the stock is offering an exceptionally high dividend yield of 10.1%. The company has an elevated payout ratio of 100% but a strong balance sheet and a consistent dividend record. As a result, its dividend should be considered safe, though investors should not expect meaningful dividend growth anytime soon. Overall, the stock seems undervalued right now.

Moreover, Atrium Mortgage Investment Corporation is characterized by extremely low trading volume. This means that it may be hard to establish or sell a large position in this stock.

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