If you’re the shareholder of First National Corporation (FN.TO), you probably know that you will get a juicy dividend in December. The company announced this Tuesday that they will pay a special dividend of $1.25 per shares on December 15, 2017. They generated excess capital and have decided to distribute that between the shareholders like you and me.
First National is Canada’s largest non-bank lender. I started to invest in FN.TO a few years ago when they had $80 billion of mortgages under administration. Back then, the shares were trading in low twenties, offering a dividend yield of around 7%.
Today, the corporation has $100 billion of mortgages under administration and still pays a decent dividend on monthly basis. Since I have 85 shares in my portfolio, I will receive a special dividend of $106.25. That will be a great boost to my dividend income.
