# MCAN Mortgage Corporation (MKP.TO)



## MrBlackhill (Jun 10, 2020)

Any opinion about this stock?

I've just added it to my watchlist after stumbling upon it. Debt is a bit high, that's why it didn't go through my usual screener. (EDIT: Seems like that level of not is not high for a MIC)

Very stable total return. For those who like dividends, they pay high dividends with very little fluctuations and its share price tends to increase over time.

It also seems to fit pretty well in 6-pack or 8-pack like this.





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## hycm53 (May 11, 2019)

MrBlackhill said:


> Any opinion about this stock?
> 
> I've just added it to my watchlist after stumbling upon it. Debt is a bit high, that's why it didn't go through my usual screener.
> 
> ...


According to company website, the dividend income is treated as interest income, therefor there is no dividend credit.


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## OptsyEagle (Nov 29, 2009)

hycm53 said:


> According to company website, the dividend income is treated as interest income, therefor there is no dividend credit.


That is because it is a MIC and consequently they do not pay corporate income taxes. Remember the dividend tax credit was simply a mechanism to ensure that a companies profit was not double taxed (corporate taxes and personal taxes).

That said, an RRSP or TFSA is probably the better place for this type of investment.

Also, because they are a MIC (mortgage investment corporation) their debt level is not high, but rather low. Compared to other mortgage lenders, a MIC cannot have leverage more then a certain amount of equity. I believe it is 5 times, but I am not sure on the exact number, but in any case, you will find a MIC's debt levels much lower then traditional banks. By debt, I am including customer deposits.


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## MrBlackhill (Jun 10, 2020)

OptsyEagle said:


> That is because it is a MIC and consequently they do not pay corporate income taxes. Remember the dividend tax credit was simply a mechanism to ensure that a companies profit was not double taxed (corporate taxes and personal taxes).
> 
> That said, an RRSP or TFSA is probably the better place for this type of investment.
> 
> Also, because they are a MIC (mortgage investment corporation) their debt level is not high, but rather low. Compared to other mortgage lenders, a MIC cannot have leverage more then a certain amount of equity. I believe it is 5 times, but I am not sure on the exact number, but in any case, you will find a MIC's debt levels much lower then traditional banks. By debt, I am including customer deposits.


Thanks for the info!


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## Beaver101 (Nov 14, 2011)

Still have this MIC for a little over a decade in non-registered (oops) and a little under a decade in a registered account (correcting the oops). Looks like it's a forever hold along with 2 other competing MICs. This one is the strongest of the three MIC companies.


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## MrBlackhill (Jun 10, 2020)

I've just noticed that there was already an existing thread about MKP, and it's a very old thread. Never thought, because the small/micro cap are not very popular on this forum.


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## Beaver101 (Nov 14, 2011)

MrBlackhill said:


> I've just noticed that there was already an existing thread about MKP, and it's a very old thread. Never thought, because the small/micro cap are not very popular on this forum.


 ... I never noticed/checked the old thread. You could ask the moderator(s) to merge the 2 threads if you want.

As for small/micro cap "popularity", it's falling out of flavour and then there're exceptions. Plus based on your risk appetite and other beliefs aka bias. By the latter, I mean some people are into energy, others in metals/rocks and then others in crypto. And these include "big" names.


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