Want cash every month? Sure, you could get a part-time job. Or, if you have a bit of money set aside for investing, you could invest in monthly dividend stocks. Today, I’m going to cover a solid choice recommended by analysts, a stock that currently offers a dividend yield at 4.6%.
Exchange Income Corp.
Exchange Income (TSX:EIF) is a stalwart choice for investors wanting a solid option along with monthly passive income. So let’s first get into the company itself, because if you don’t understand the company, you shouldn’t invest in the stock.
Exchange Income stock focuses on acquiring businesses in aerospace, aviation, and manufacturing. The company will invest in “profitable, well-established companies with cash flows operating in niche markets.” It then goes on to create revenue mainly through the sale of parts in the aerospace and aviation segment, as well as software and even licenses. Manufacturing receives revenue from products and services.
And even though there’s been a downturn, it hasn’t slowed down Exchange Income stock. As of writing, this company recently made an acquisition for $42.5 million of Hansen Industries. This company creates the metal components used to make automated equipment, and shares climbed higher on the news.
And higher and higher
Exchange Income stock continues to grow even as other companies drop around it. It seems to have found its own niche of the market, and continues to create strong opportunities for investors.
While it’s not in value territory trading at 20.6 times earnings, it does offer a reasonable 2.3 times book value. Furthermore, shares are actually up by 29% in the last year, and 3.7% year to date. That’s on top of the 95% growth it’s seen in the last decade, which remained steady except for the pandemic crash.
Because of this, you can see that the company is a stable dividend stock to invest in. One that, of course, offers a strong dividend as well currently at 4.64%. This comes to $2.52 per share on an annual basis, or $0.21 per share on a monthly basis. And that dividend has grown at a CAGR of 4.13%, up 50% in the last decade alone.
How much could you bring in monthly?
That’s entirely up to you, of course. However, given that it’s a dividend stock that is only growing higher, it seems that sooner tends to be better. Exchange Income stock doesn’t seem to have a lot of drops in the market. While there could be one in the near future if a recession is made official, I wouldn’t base your entire investment on a potential drop.
Instead, you can use historical growth to help make your decision. We already saw that dividends increased 50% in the last decade. Shares in that time are up 95% as we saw as well. Should that happen again, a $1,000 investment could turn into $1,950! Meanwhile, here is what you could receive in dividends right away.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY |
| EIF | $54.50 | 18 | $2.52 | $45.36 | monthly |
As you can see, you can receive $45.36 annually, which comes to $3.78 each month. That’s just from a $1,000 investment. Change the investment amount to what you can afford, and you could bring in hundreds each year in passive income alone.
