Analysts are forecasting TF to see moderate declines in both revenue and earnings-per-share in the next two years. TF continues to have a decent balance sheet with cash significantly rising in Q3 to $37.2M but with total debt at $1.12B. Net income remains positive at $16.5M while also having positive cash flows from operations. Analysts have a cautious stance on the mortgage finance industry due to market sentiment declining. TF provided a positive update in Q3 regarding repayment of Stage 2 and 3 loans which are expected to be resolved in the near term. The dividend has not grown in the past 3 years. The dividend needs to be considered higher risk; The risk of dividends being cut is speculative but present if TF sees default rates increase. The dividend is considered interest income. In one year of the past 10, 2% of the dividend was capital gains. We would consider it OK for income, but it is entirely sensitive to rates and real estate, so should be considered higher risk income.
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