The main risks are its smaller size, its 100% dependence on mortgages, rates and housing, and possible credit losses. Competition has also intensified as the overall market has slowed. There has not been a lot of earnings growth, but it has been consistently profitable since 2011. It has not raised its dividend since January 2018, but it has paid regular (small) special dividends. It has never skipped a dividend. It is priced well at 8X earnings, and shares have held up fairly well this year, considering the back up in rates and the economic concerns. We would agree it is a decent steady eddy name, but needs to be considered higher risk income for sure. A real estate crash would certainly impact it, perhaps materially. We would also consider it best for only income investors, and would expect little growth here.
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