Investing in a safe and promising long-term monthly dividend stock is like giving yourself a little financial bonus every month. The key benefit is that you get consistent income. It’s also a great way to ride out market volatility because while stock prices may fluctuate, those monthly payments keep coming. Some stocks even increase their dividends over time, meaning more cash in your pocket without lifting a finger! Here’s one to consider.
Exchange Income
Exchange Income (TSX:EIF) is a bit of a hidden gem when it comes to Canadian stocks that pay monthly dividends. It operates in a bunch of industries — as varied as aviation and manufacturing — which helps spread out risk and create more stable revenue streams. For dividend investors, that’s a major plus and likely contributes to the company’s history of paying dividends consistently. And its monthly payouts could be especially appealing for investors who don’t want to wait for quarterly dividends.
EIF’s diversified business model positions it well for long-term growth. Aviation services, especially in niche markets like regional airlines and medevac operations, provide steady demand even in tough economic times. As for its manufacturing businesses, EIF caters to infrastructure and aerospace clients, who tend to have resilient long-term growth trends. This diversification not only helps protect against downturns in any single sector but also supports the company’s ability to maintain and even grow its dividend.
EIF’s business performance
Revenue grew 5.3% year-over-year, to $2.61 billion, in its most recent earnings. While earnings per share (EPS) slightly dipped compared with the year earlier, EIF’s long-term potential is still there. The company’s operating margin of 12.1% shows strong efficiency, and its return on equity (ROE) of 9.38% is a healthy indicator of management’s ability to generate profits. The company has also kept its debt in check with a current ratio of 1.77, meaning it can comfortably pay for its short-term obligations.
As the company continues to expand and refine its operations, investors can reasonably expect a stable dividend yield with potential for future growth. For those looking to build a monthly income stream, EIF offers a combination of consistency, diversification, and long-term potential.
Bottom line
If you put $15,000 to work in EIF stock, here’s what you could expect from an investment made at the recent stock price: $15,000 / $53.75 = 279 shares
| NUMBER OF SHARES | MONTHLY DIVIDEND | TOTAL PAYOUT OVER 1 YEAR |
| 279 | $0.22 | $736.56 |
That’s $61.38 every month in dividend payouts.
You’re also likely to enjoy capital gains when you sell your shares. Over the past 19 years, EIF stock has had a market-beating average annual return of 19%.
