Canadians are feeling the pressure when it comes to managing their money. In times like these, dependable income is more important than ever. That’s why I’d invest $7,000 in one solid monthly payer on the TSX: Exchange Income (TSX: EIF). Not only will it bring in monthly dividend income, but it still looks on track to be a major grower. Let’s get into it.
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About EIF
Exchange Income is a well-established dividend stock that operates in two key areas: aviation services and manufacturing. Its businesses include regional airlines, medevac services, aircraft leasing, and companies that build precision parts for aerospace, defence, and telecommunications. These aren’t flashy operations, but essential. That’s exactly what you want in a long-term income investment.
What makes EIF so attractive is that it pays a dividend every single month. That dividend currently sits at $0.22 per share. At a recent share price of about $58, that works out to a yield of roughly 4.6%. If you put your full $7,000 Tax-Free Savings Account (TFSA) contribution into EIF, you could buy around 120 shares. That would give you monthly income of about $316.80 per year or $26.40 each month. In a TFSA, that income is tax-free. That’s a reliable stream of passive income you can count on, with zero tax drag.
| COMPANY | RECENT PRICE | UNITS | DIVIDEND | TOTAL PAYOUT | FREQUENCY | INVESTMENT TOTAL |
|---|---|---|---|---|---|---|
| EIF | $58.05 | 120 | $2.64 | $316.80 | Monthly | $6,966.00 |
Safe and stable
More importantly, EIF has a solid track record of paying – and growing – its dividend. It hasn’t missed a monthly payout since 2004. In fact, it has increased its dividend more than a dozen times since going public. That kind of consistency matters when inflation is high and markets are uncertain. It gives investors confidence that income will keep coming in regardless of what’s happening in the headlines.
The dividend stock’s most recent earnings report backs that up. For the first quarter of 2025, EIF posted revenue of $668.3 million, up 11% from the same period last year. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) came in at $130 million, a 17% increase. Free cash flow available for dividends rose 32% to $81 million. Net earnings also improved to $14.3 million, or $0.28 per share, up 40% from the year before. These numbers show strong momentum across both its aviation and manufacturing divisions.
More to come
EIF is also actively expanding its business. It recently acquired Newfoundland Helicopters and Spartan, which have already contributed to earnings growth. It also has a deal in place to acquire Canadian North, pending approval. These moves not only expand its footprint but help secure more stable cash flow for the future. And it’s doing this while keeping its balance sheet healthy. Management recently boosted its credit facility to $3 billion and retired some outstanding debt, giving it more flexibility going forward.
Despite the recent rally, EIF stock is up almost 30% over the past year, and it still offers good value. With a forward price-to-earnings (P/E) ratio of around 16, it’s not overpriced given its earnings growth and dividend reliability. Plus, because the dividend is paid monthly, investors benefit from compounding if they reinvest those payments. It’s a powerful way to build long-term wealth, especially in a tax-sheltered account.
Bottom line
In a world where market volatility, economic uncertainty, and inflation continue to weigh on people’s minds, having a dependable monthly payer like EIF can bring peace of mind. It delivers steady income, has room to grow, and supports its dividend with strong fundamentals. And that’s exactly what Canadians are looking for right now.
If you’re trying to build long-term income from your TFSA and want to start seeing monthly deposits roll in, this stock offers a practical and proven solution. Exchange Income has shown it can deliver through the ups and downs. For decades of stable income, $7,000 in EIF could go a long way.
