February 2026 may very well be a record-breaking month for the TSX, given the present upward pattern, to not point out a recent document closing excessive of 33,256.80 on the tenth. Nevertheless, income-focused tradersnotably Tax-Free Financial savings Account (TFSA) customers, nonetheless want an extra 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 supply is a mouth-watering 9.7%. Furthermore, the payout frequency is month-to-month relatively than the everyday quarterly. The passive earnings can type a part of your month-to-month funds.
Low-rate surroundings
The Financial institution of Canada’s latest resolution to carry the coverage rate of interest at 2.25% indefinitely, or at the least all through 2026, is a major tailwind for the mortgage finance business. Timbercreek Monetary, a specialised however conservative lender within the business actual property area, ought to likewise profit from the low-rate surroundings.
This $590 million mortgage funding company (MIC) affords shorter-duration structured financing options, lending solely in opposition to income-producing business actual property. Secure, decrease charges stimulate mortgage demand, whereas business debtors could be higher in a position to service their money owed.
Moreover, Timbercreek’s weighted-average loan-to-value (LTV) ratio of 67.9% offers a security web within the occasion of borrower default. For risk-averse income-seekers, the conservative lending coverage and built-in fairness cushion ensures help 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 surroundings 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 course of the following change within the benchmark price.
Secure asset class and capital safety
Timbercreek inventory climbed steadily to the $7 degree to begin the 12 months, 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 skill to ship secure month-to-month earnings by 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 characterize 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 deal with multi-family residential actual property, a resilient asset class, helps to ship secure earnings and shield investor capital. Rowland provides that the underlying funding pipeline, with robust threat 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 deal with important, resilient asset class. The uninterrupted month-to-month dividend funds since August 2016 add confidence to spend money on the earnings powerhouse.