Q: Good Evening
My question is about FC -Firm Capital Mortgage Corporation.
In your universe there are several convertible unsecured FC debentures but not the actual FC.
Can you please provide some information about this company. Their dividend was not cut since 2004. Is it suitable for an investor who is interested in relatively less risky investments with predictable income streams.
Thank you.
My question is about FC -Firm Capital Mortgage Corporation.
In your universe there are several convertible unsecured FC debentures but not the actual FC.
Can you please provide some information about this company. Their dividend was not cut since 2004. Is it suitable for an investor who is interested in relatively less risky investments with predictable income streams.
Thank you.
5i Research Answer:
FC is listed in the database under FC:CA Note the dividend is considered interest. It is cheap at 11X earnings, with a 8.01% dividend. The dividend has not changed in at least 16 years, though it does pay small special dividends at times. It did not cut the dividend in the pandemic nor in more recent prior recessions. But it is a small company, with full exposure to interest rates and the economy and the real estate market. It needs to be considered higher risk income. Dividend payout is decent at currently 50%. We would not consider it 'strong' but 'OK' for an investor seeking higher income and higher risk in a small cap stock.