February 2026 might be a record-breaking month for the TSX, given the present upward pattern, to not point out a contemporary document closing excessive of 33,256.80 on the tenth. Nevertheless, income-focused traders, notably Tax-Free Financial savings Account (TFSA) customers, nonetheless want a further monetary cushion if the market corrects amid elevated volatility.
Timbercreek Monetary (TSX:TF) is an ideal TFSA inventory this month. This high-yield monetary inventory can function an earnings anchor in a tax-sheltered account. At $7.08 per share, the dividend provide is a mouth-watering 9.7%. Furthermore, the payout frequency is month-to-month fairly than the everyday quarterly. The passive earnings can type a part of your month-to-month price range.
Low-rate atmosphere
The Financial institution of Canada’s current choice to carry the coverage rate of interest at 2.25% indefinitely, or not less than all through 2026, is a major tailwind for the mortgage finance trade. Timbercreek Monetary, a specialised however conservative lender within the industrial actual property house, ought to likewise profit from the low-rate atmosphere.
This $590 million mortgage funding company (MIC) gives shorter-duration structured financing options, lending completely towards income-producing industrial actual property. Secure, decrease charges stimulate mortgage demand, whereas industrial debtors can be higher capable of service their money owed.
Moreover, Timbercreek’s weighted-average loan-to-value (LTV) ratio of 67.9% supplies a security web within the occasion of borrower default. For risk-averse income-seekers, the conservative lending coverage and built-in fairness cushion ensures assist for and the sustainability of dividends.
Throughout a convention name in late October 2025, Timbercreek’s Chief Govt Blair Tamblyn, stated {that a} diminished rate of interest atmosphere has set the inspiration for a brand new actual property cycle. In the meantime, on February 11, 2026, the Financial institution of Canada’s governing council stated it was troublesome to foretell the timing and path of the following change within the benchmark charge.
Secure asset class and capital safety
Timbercreek inventory climbed steadily to the $7 stage to begin the yr, however the earnings miss in Q3 2025. There was additionally a big surprising compensation that diminished the general portfolio. Nonetheless, Tamblyn expects to current improved fourth-quarter and full-year outcomes on February 26, 2026.
He additionally expressed confidence in Timbercreek’s continued potential to ship secure month-to-month earnings by means of a conservative technique grounded in income-producing property. Multi-residential actual property property comprise about 57% of the portfolio, 82% of whole investments are in cash-flowing properties, and first mortgages symbolize 94%.
In keeping with Scott Rowland, Chief Funding Officer of Timbercreek, the weighted rate of interest (WIR) has declined within the final three quarters as a result of BOC’s rate-cutting cycle. Nevertheless, he expects WIR to return to the historic common of roughly 8%.
Timbercreek is conscious that financial uncertainty poses challenges for the enterprise. The concentrate on multi-family residential actual property, a resilient asset class, helps to ship secure earnings and defend investor capital. Rowland provides that the underlying funding pipeline, with robust danger and return profiles, is the expansion driver within the coming quarters.
Funding takeaways
A compelling argument for Timbercreek Monetary is its defensive portfolio and its concentrate on important, resilient asset class. The uninterrupted month-to-month dividend funds since August 2016 add confidence to spend money on the earnings powerhouse.
