Q: As an income-oriented investor, I would like dependability, minimal risk and a predictable, steady cash flow. Can you suggest a few companies to consider? What are your thoughts on Firm Capital Mortgage Investment Corp to this regard?
5i Research Answer:
We would consider FC a decent, well-priced stock. It has never lost money (back to 2000) so it certainly qualifies as stable. However, there is next-to-no growth. EPS is about the same this year as two decades ago. With its high dividend there is not a lot of capital left for growth. We would consider it OK, with the following caveats: a) It is quite small b) it is highly sensitive to interest rates and real estate financing markets.
Other larger selections we can offer: BAM, TRI, SLF, IFC, RY, FTS, H, ENB