Propel Holdings (TSX:PRL) is a fintech firm that almost all buyers outdoors of Canada have by no means heard of. It makes use of synthetic intelligence to lend cash to customers whom conventional banks routinely flip away.
Propel has grown income at a 46% compound annual development charge (CAGR) since 2019. It additionally pays shareholders an annual dividend of US$0.54 per share, yielding over 3%.
Valued at a market cap of $822 million, the TSX dividend inventory is down 50% from all-time highs, permitting you to purchase the dip.
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The bull case for the TSX dividend inventory
About 37% of U.S. adults can not cowl a $400 emergency expense. In Canada, 54% of individuals say they’re dwelling paycheque to paycheque. Conventional banks largely ignore these customers due to their decrease credit score scores.
Propel fills that hole. Its AI platform evaluates debtors extra comprehensively than a normal credit score rating. Propel elements in behavioural knowledge and different indicators to make smarter lending choices.
The corporate operates throughout greater than 50 states and provinces in North America, has facilitated 1.3 million in loans and contours of credit score since its founding, and has funded over US$2 billion in whole originations.
The addressable market is gigantic. The worldwide fintech lending market is estimated at US$1 trillion, and there are roughly 90 million underserved customers in North America and the UK alone.
Within the third quarter of 2025:
- Propel delivered report income of US$152.1 million, up 30% 12 months over 12 months.
- Complete originations funded hit a report US$205 million, up 37%.
- Web revenue rose 43% to US$15 million.
Propel additionally raised its annual dividend to $0.84 per share, an 8% year-over-year improve. That’s the ninth consecutive dividend hike because the firm went public on the Toronto Inventory Trade in 2021.
Propel unlocks new development runway
A key improvement at Propel proper now isn’t its earnings report.
In early 2026, the corporate obtained regulatory approval from the Workplace of the Commissioner of Monetary Establishments of Puerto Rico to ascertain Propel Worldwide Financial institution, Inc., a completely licensed banking subsidiary.
Till now, Propel operated by partnering with present banks to originate loans. Whereas the mannequin has labored effectively, the banking license is a long-term driver for the fintech entity.
Propel Financial institution is licensed as an Worldwide Monetary Entity and operates underneath U.S. federal legal guidelines, together with anti-money laundering statutes. It is going to initially give attention to offering underwriting, compliance, and customer support to Propel’s present and future financial institution companions. Over time, it opens the door to new merchandise, new markets, and considerably extra management over the enterprise.
CEO Clive Kinross put it plainly: “Propel Financial institution marks the subsequent step in our journey to develop into world leaders by strengthening our partnership platform, increasing our attain, and opening new pathways for development.”
Why is the TSX dividend inventory so low cost?
The brief reply is macro noise. The corporate tightened its underwriting within the again half of 2025 as a result of stress on lower-income customers from persistent inflation, slower wage development, and the results of a chronic U.S. authorities shutdown on SNAP (Supplemental Diet Help Program) advantages and client sentiment. That led administration to trim its full-year development steerage barely.
However right here’s the factor: Propel has navigated harder environments earlier than. The corporate was worthwhile by way of COVID, the 2023 inflation spike, and each credit score cycle it has confronted.
Administration famous that delinquencies had been already bettering as underwriting changes took impact and the pipeline of mortgage purposes has by no means been stronger.
The corporate additionally has a quickly rising U.Okay. enterprise, which delivered report originations in Q3 and is on tempo for greater than 50% income development in 2025. Administration expects that to speed up towards 100% development in 2026.
At present costs, you’re getting a confirmed AI-powered lender with a powerful dividend development streak, a freshly minted banking license, and a report working monitor report, at roughly half the value the market was prepared to pay not way back.
Given consensus worth targets, the TSX inventory trades at a 72% low cost in February 2026.
