This 11.6 Percent Dividend Stock Pays Cash Every Single Month

Bridgemarq Real Estate Services is a monthly dividend stock that offers investors a double-digit yield in October 2024.

| More on:

Investing in monthly dividend stocks with an attractive yield enables you to begin a passive-income stream at a low cost. However, as dividends are not guaranteed, it’s crucial to identify companies that can maintain and grow these payouts over time.

One TSX stock with a monthly dividend is Bridgemarq Real Estate Services (TSX:BRE), which offers shareholders a forward yield of almost 11.6%. Let’s see if the TSX dividend stock should be part of your income portfolio right now.

An overview of Bridgemarq Real Estate Services

Valued at $133 million by market cap, Bridgemarq Real State provides various services to residential real estate brokers in Canada. It offers information, tools, and services that assist its customers in providing real estate sales services. With a franchise network of over 20,000 realtors across +700 locations, Bridgemarq Real Estate operates under the brand names Royal LePage, Via Capitale, and Proprio Direct.

In recent years, Bridgemarq has diversified its revenue base by adding brokerage operations, which complements its successful franchise business and allows it to capture additional growth across the real estate sector.

The TSX stock has returned just 1.3% to shareholders in the last 10 years. However, if we account for dividend reinvestments, cumulative returns are much higher at 149%.

A strong performance in Q2 of 2024

Earlier this year, Bridgemarq acquired certain real estate brokerages from Brookfield Business Partners for total proceeds of $40.9 million. This acquisition allowed Bridgemarq to report revenue of $110.1 million in Q2 of 2024, up from just $12.8 million in the year-ago period. The top-line growth was attributed to the inclusion of gross commission income, revenue from acquisitions, improving market conditions, and franchise fee increases.

Bridgemarq generated net income of $10.6 million, or $0.17 per share, compared to earnings of $1.1 million, or $0.12 per share, in the year-ago period.

Its operating cash flow almost tripled year over year to $10.5 million in the second quarter (Q2). In the last 12 months, Bridgemarq’s free cash flow has totalled $19.3 million, while its dividend payout is roughly $12.5 million each year. Given a payout ratio of 65%, Bridgemarq can continue to target acquisitions and strengthen the balance sheet.

How is the Canadian real estate sector performing?

The cyclical real estate sector suggests Bridgemarq would underperform in periods of economic contraction or elevated interest rates. While additional interest rate cuts are on the horizon, the Canadian residential real estate market contracted by 4% year over year to $102 billion. Further, average selling prices fell by 3%, and unit sales were down 2% in the June quarter. Compared to Q1, average selling prices rose 1%, and unit sales were up 40%.

Vancouver and Toronto are the two largest cities in Canada, and the real estate sector in these regions has grown at an astonishing pace over the past two decades.

The real estate market in the Greater Toronto Area rose by 17% to $23.5 billion in Q2, driven by a 15% drop in unit sales and a 1% decline in selling prices. Compared to Q1, total transactional dollar volume was up 32% due to a 24% increase in unit sales and a 6% increase in selling prices.

The Greater Vancouver real estate market fell 11% to $10.6 billion in Q2 due to a 13% decline in unit sales and a 3% increase in selling prices.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bridgemarq Real Estate Services. The Motley Fool has a disclosure policy.

More on Dividend Stocks

Canada national flag waving in wind on clear day
Dividend Stocks

1 Magnificent Canadian Dividend Stock Down 32% to Buy and Hold Forever

Despite growing debt and a significant payout ratio, is BCE still one of the best Canadian dividend stocks to buy…

Read more »

Woman in private jet airplane
Dividend Stocks

3 Secrets of TFSA Millionaires

The TFSA is a strong way to reach that millionaire status, but only if you make sure to follow the…

Read more »

The TFSA is a powerful savings vehicle for Canadians who are saving for retirement.
Dividend Stocks

2 TFSA Stocks to Buy Right Now With $7,000

The TFSA is the perfect vehicle for creating long-term growth, and keeping up with those investments can create immense income!

Read more »

bulb idea thinking
Dividend Stocks

The Smartest Dividend Stocks to Buy With $1,000 Right Now

Northwest Healthcare Properties is one of two dividend stocks that are affordable and high yielding, with a good risk/return profile.

Read more »

Forklift in a warehouse
Dividend Stocks

The Smartest Dividend Stocks to Buy With $100 Right Now

Dividend stocks are key for any portfolio, but only if those dividends are consistent! That's what makes these three top…

Read more »

Man data analyze
Dividend Stocks

Passive Income: How Much Do You Need to Invest to Make $400 Per Month?

Here's some passive-income math to get your journey to financial freedom started.

Read more »

Asset Management
Dividend Stocks

A 10% Dividend Yield Today! But Here’s Why I’m Buying This TSX Stock for the Long Term 

A 10% dividend yield stock has risks in the short term but growth in the long term. This stock is…

Read more »

Transparent umbrella under heavy rain against water drops splash background. Rainy weather concept.
Dividend Stocks

The Safest Dividend Stocks That Could Pay Big Bucks Forever

These two safe Canadian Dividend Aristocrats could help you earn safe income for decades to come.

Read more »