Genworth MI Canada Inc. (TSX:MIC) stock was up 0.20% at the top of the noon hour on August 21. Shares are up 1.7% in 2018 so far. Genworth is the largest private residential mortgage insurer in Canada. The stock is a solid bet for investors as the Canadian housing market has stabilized in the summer.
In mid-August Canada’s housing market achieved its first year-over-year price increase since January 2018. The Canadian Real Estate Association (CREA) reported that home sales across Canada increased 1.9% in July compared to the previous month. Home sales are still down 1.3% year over year. The average sales price on a home rose 1% year-over-year to $481,500.
Genworth is a reliable option for investors looking to take advantage of this apparent stabilization. The company released its second-quarter results on July 31. Transactional premiums written rose 3% from the prior year to $166 million and premiums earned climbed 2% year-over-year to $171 million.
Genworth has reported slower mortgage originations but has benefited from rate tightening and the resulting 8% higher average premium rate.
The company last announced a quarterly dividend of $0.47 per share representing a 4.2% dividend yield. In addition to its attractive yield Genworth stock has also posted solid capital growth even in the midst of turbulence in the housing market.
Shares are up 22.9% year over year. This is a fantastic option for a TFSA or RRSP seeking balance and exposure to Canada housing.
