Xceed Mortgage Corp. today announced it is increasing its quarterly dividend by 20%, marking the fourth consecutive dividend hike.

The Toronto-based residential mortage lender said the second-quarter cash dividend increases to 6¢ a share, payable on August 8, up from 5¢ in the previous quarter.

The company also reported second-quarter earnings of $3.3 million, or 11¢ a share, for the period ended April 30, compared with $3.4 million, or 11¢ a share, for the same time a year earlier.

“Our operations remained on a strong footing despite, as previously announced, a lower-than-expected volume of mortgage fundings in the fiscal second quarter,” said Ivan Wahl, chairman and CEO.

Mortgage fundings of $133.2 million, compared with $181.6 million a year earlier. Fundings in the first half of fiscal 2006 totaled $308.6 million, compared with $320.8 million in the same period in 2005.

Mortgages sales to securitization vehicles for the three and six month periods ended April 30, 2006 were valued at $152.3 million and $338.3 million, respectively, compared to $136.9 million and $260.2 million in the corresponding periods of the prior year.

Mortgages and other assets under administration rose to $2 billion, an increase of 2.7% from the end of the first quarter and 42.4% higher than a year earlier.