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Monthly Dividend Stock In Focus: Bridgemarq Real Estate Services


Updated on March 31st, 2025 by Felix Martinez

Bridgemarq Real Estate Services (BREUF) has two appealing investment characteristics:

#1: It is a high-yield stock based on its 10.4% dividend yield.
Related: List of 5%+ yielding stocks.
#2: It pays dividends monthly instead of quarterly.
Related: List of monthly dividend stocks

You can download our full Excel spreadsheet of all 76 monthly dividend stocks (along with metrics that matter, like dividend yield and payout ratio) by clicking on the link below:

 

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Combining a high dividend yield and a monthly dividend makes Bridgemarq Real Estate Services appealing to income-oriented investors. The company also has a strong business model, with most of its revenues being recurring. In this article, we will discuss the prospects of Bridgemarq Real Estate Services.

Table of Contents

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Business Overview

Bridgemarq Real Estate Services provides various services to residential real estate brokers and REALTORS in Canada. It offers information, tools, and services that assist its customers in the delivery of real estate services. The company provides its services under the Royal LePage, Via Capitale, Johnston, and Daniel brand names. The company was formerly known as Brookfield Real Estate Services and changed its name to Bridgemarq Real Estate Services in 2019. Bridgemarq Real Estate Services was founded in 2010 and is headquartered in Toronto, Canada.

Bridgemarq generates cash flow from fixed and variable franchise fees from a national network of nearly 21,000 REALTORS operating under the aforementioned brand names. Approximately 81% of the franchise fees are fixed in nature, resulting in fairly predictable and reliable cash flows. Franchise fee revenues are protected via long-term contracts.

Bridgemarq has a solid business relationship with its partners, and thus, it enjoys remarkably high renewal rates. The company has historically achieved a 96% renewal rate whenever a contract has expired.

Source: Investor Presentation

Moreover, Royal LePage’s franchise agreements, which comprise 96% of the company’s REALTORS, are 10-to 20-year contracts, providing great cash flow visibility.

Bridgemarq has a dominant business position in Canada. Through its immense network of REALTORS, the company participated in over 70% of the total home resales in Canada. Bridgemarq’s brands attract franchisees thanks to their reputation and the technological advantages they provide.

Despite its strong business model, Bridgemarq was severely hurt by the fierce recession caused by the coronavirus crisis in 2020. The Canadian real estate market faced an unprecedented downturn that year. Consequently, the company saw its earnings per share plunge 47%, from $0.34 in 2019 to $0.18 in 2020.

In 4Q2024, the company reported a 2024 revenue of $350.7 million, a sharp rise from $48.5 million in 2023, driven by its $40.9 million acquisition of brokerages from Brookfield. Despite higher revenue, the company posted a net loss of $10.3 million (-$1.09 per share) due to a $9.3 million loss on Exchangeable Units. Free cash flow fell to $16.8 million from $18.1 million, while cash provided by operations increased by $3.4 million. The Board declared a monthly dividend of $0.1125 per share, payable April 30, 2025.

In Q4 2024, revenue surged to $101.5 million from $10.8 million in Q4 2023, but net loss widened to $9.6 million (-$1.02 per share). Adjusted Net Earnings for the year dropped to $7.3 million from $12.4 million due to higher interest costs and amortization. Free cash flow for the quarter fell to $1.8 million from $3.6 million in Q4 2023.

Canada’s real estate market grew 12% in 2024, with Q4 up 50% year-over-year. Home sales rose 11%, and the average price increased 2%. Lower borrowing rates, with the Bank of Canada’s key rate at 2.75%, drove demand. Bridgemarq’s network now includes 20,283 REALTORS® across 684 locations, plus 36 corporate offices in major markets.

Growth Prospects

Bridgemarq pursues growth by continuously increasing the number of its partners.

Source: Investor Presentation

Since 2017, the company has grown the number of REALTORS by more than 13%. As a result, it now has 20,564 partners operating through 282 franchise agreements at 723 locations.

As mentioned, the vast majority of Bridgemarq’s franchise fees are fixed, which renders the company’s cash flows fairly predictable. However, this is easier said than done.

Bridgemarq has exhibited a somewhat volatile performance record over the last nine years due to the volatility in the real estate market and the swings of the exchange rate between the Canadian dollar and the USD. Nevertheless, the company has been able to more than double its adjusted earnings per share, from $0.35 in 2013 to $0.72 in 2024.

Given Bridgemarq’s strong business position, long-term performance record, and some growth limitations due to the company’s size, we expect approximately 4.0% average annual earnings per share growth over the next five years.

Dividend & Valuation Analysis

Bridgemarq is offering an exceptionally high dividend yield of 10.4%, many times the 1.3% yield of the S&P 500. The stock is thus an interesting candidate for income-oriented investors, but U.S. investors should be aware that the dividend they receive is affected by the prevailing exchange rate between the Canadian dollar and the U.S. dollar.

Bridgemarq has a payout ratio of over 100%, and its balance sheet does not look very good. The company’s net debt is $182 million, over 100% of the stock’s market capitalization. Overall, the company’s dividend is not likely to be reduced significantly in the absence of a severe recession.

On the other hand, investors should be aware that the dividend has remained essentially flat over the last nine years. Thus, it is prudent not to expect meaningful dividend growth going forward.

About the valuation, Bridgemarq has traded for 33.0 times its earnings per share in the last 12 months. We assume a fair price-to-earnings ratio of 14.0 for the stock. Therefore, the current earnings multiple is much higher than our assumed fair price-to-earnings ratio. If the stock trades at its fair valuation level in five years, it will compress at 6% annualized in its returns.

Considering the 4.0% annual growth of earnings per share, the 10.4% dividend yield, and a 6% annualized compression of the valuation level, Bridgemarq could offer a 7.4% average annual total return over the next five years. This is not an attractive expected total return, and hence, we advise investors to refrain from buying the stock around its current price.

Final Thoughts

Bridgemarq has a dominant position in its business and enjoys fairly reliable cash flows thanks to the recurring nature of most of its fees. It also offers an exceptionally high dividend yield of 10.4% but a high payout ratio of over 100%, which makes it attractive for income-oriented investors.

Moreover, Bridgemarq does not have an attractive valuation right now, as it has an expected 5-year annual total return of 7.4%. The stock’s high valuation has resulted primarily from a deceleration in business momentum lately, but we expect the company to return to growth mode in the upcoming years thanks to its consistent record of growing the number of its partners. Therefore, investors should wait patiently for business momentum to accelerate again.

Don’t miss the resources below for more monthly dividend stock investing research.

And see the resources below for more compelling investment ideas for dividend growth stocks and/or high-yield investment securities.

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