Propel Holdings (TSX:PRL) is a fintech firm that almost all traders exterior of Canada have by no means heard of. It makes use of synthetic intelligence to lend cash to shoppers whom conventional banks routinely flip away.
Propel has grown income at a 46% compound annual progress charge (CAGR) since 2019. It additionally pays shareholders an annual dividend of US$0.54 per share, yielding over 3%.
Valued at a market cap of $822 million, the TSX dividend inventory is down 50% from all-time highs, permitting you to purchase the dip.
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The bull case for the TSX dividend inventory
About 37% of U.S. adults can not cowl a $400 emergency expense. In Canada, 54% of individuals say they’re dwelling paycheque to paycheque. Conventional banks largely ignore these shoppers due to their decrease credit score scores.
Propel fills that hole. Its AI platform evaluates debtors extra comprehensively than an ordinary credit score rating. Propel elements in behavioural information and different alerts to make smarter lending selections.
The corporate operates throughout greater than 50 states and provinces in North America, has facilitated 1.3 million in loans and contours of credit score since its founding, and has funded over US$2 billion in whole originations.
The addressable market is gigantic. The worldwide fintech lending market is estimated at US$1 trillion, and there are roughly 90 million underserved shoppers in North America and the UK alone.
Within the third quarter of 2025:
- Propel delivered file income of US$152.1 million, up 30% 12 months over 12 months.
- Whole originations funded hit a file US$205 million, up 37%.
- Web revenue rose 43% to US$15 million.
Propel additionally raised its annual dividend to $0.84 per share, an 8% year-over-year enhance. That’s the ninth consecutive dividend hike for the reason that firm went public on the Toronto Inventory Change in 2021.
Propel unlocks new progress runway
A key improvement at Propel proper now isn’t its earnings report.
In early 2026, the corporate obtained regulatory approval from the Workplace of the Commissioner of Monetary Establishments of Puerto Rico to determine Propel Worldwide Financial institution, Inc., a totally licensed banking subsidiary.
Till now, Propel operated by partnering with present banks to originate loans. Whereas the mannequin has labored effectively, the banking license is a long-term driver for the fintech entity.
Propel Financial institution is licensed as an Worldwide Monetary Entity and operates underneath U.S. federal legal guidelines, together with anti-money laundering statutes. It’ll initially deal with offering underwriting, compliance, and customer support to Propel’s present and future financial institution companions. Over time, it opens the door to new merchandise, new markets, and considerably extra management over the enterprise.
CEO Clive Kinross put it plainly: “Propel Financial institution marks the subsequent step in our journey to grow to be world leaders by strengthening our partnership platform, increasing our attain, and opening new pathways for progress.”
Why is the TSX dividend inventory so low-cost?
The quick reply is macro noise. The corporate tightened its underwriting within the again half of 2025 as a consequence of stress on lower-income shoppers from persistent inflation, slower wage progress, and the consequences of a chronic U.S. authorities shutdown on SNAP (Supplemental Diet Help Program) advantages and client sentiment. That led administration to trim its full-year progress steerage barely.
However right here’s the factor: Propel has navigated harder environments earlier than. The corporate was worthwhile by COVID, the 2023 inflation spike, and each credit score cycle it has confronted.
Administration famous that delinquencies had been already bettering as underwriting changes took impact and the pipeline of mortgage purposes has by no means been stronger.
The corporate additionally has a quickly rising U.Okay. enterprise, which delivered file originations in Q3 and is on tempo for greater than 50% income progress in 2025. Administration expects that to speed up towards 100% progress in 2026.
At present costs, you’re getting a confirmed AI-powered lender with a powerful dividend progress streak, a freshly minted banking license, and a file working observe file, at roughly half the value the market was keen to pay not way back.
Given consensus worth targets, the TSX inventory trades at a 72% low cost in February 2026.