Canadians today are thinking twice about where to put their money. With rising mortgage costs, many are cutting back on spending and even pulling money out of their investments. That makes every dollar count a little more. If I had $2,000 to invest on the TSX right now, I’d want to put it somewhere stable, with monthly income, long-term potential, and a business that makes sense. That’s why I’d go with Exchange Income (TSX:EIF).
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Why EIF
Exchange Income is a dividend stock that most people haven’t heard of, yet it plays a big role in essential parts of the economy. It owns regional airlines, medevac services, aircraft leasing businesses, and manufacturing operations. That might sound like a lot of different pieces, but the strategy is simple. The dividend stock looks for stable, cash-generating businesses, buys them, and uses the money they earn to pay dividends and fund future growth. It’s not a high-growth tech name, but it’s not trying to be. This is the kind of dividend stock that’s built to last.
In the first quarter of 2025, Exchange Income posted record results. It brought in $668 million in revenue and $130 million in adjusted earnings before interest, taxes, depreciation and amortization (EBITDA). Net income was $7 million, up from $5 million the year before. Free cash flow reached $81 million. These numbers show that the business is not only surviving, it’s thriving. Management also reaffirmed full-year guidance, expecting $690 million to $730 million in adjusted EBITDA. That’s a strong sign that things are going according to plan.
More to come
The dividend stock recently expanded its credit facility from $2.2 billion to $3 billion, giving it more room to grow. That’s not something you do unless you’re confident in your ability to deliver strong results. And so far, Exchange Income has been doing exactly that. It also pays a monthly dividend of $0.22 per share, or $2.64 annually. With the share price recently trading around $58, that gives investors a yield of about 4.5%. That’s a healthy income stream, especially when many other dividend stocks are offering less and raising concerns about cuts.
Over the past year, the dividend stock climbed more than 30%, outpacing the TSX Composite. Over the past five years, it’s up close to 190%, thanks to consistent earnings growth and reinvestment. Analysts are optimistic, with most rating it a buy and setting price targets around $69. That implies upside of nearly 20% from current levels, not including dividends.
Considerations
Of course, no dividend stock is without risk. Exchange Income operates in sectors that are affected by economic conditions, fuel prices, and demand for air travel. But the dividend stock has a good track record of weathering tough times. Its business is spread across different regions and types of services, which helps smooth out the bumps. It also tends to acquire businesses that already have steady cash flow, which reduces the risk of overpaying for future promises.
With $2,000, you could buy around 34 shares of Exchange Income. That would give you around $90 in annual dividends right away, paid monthly. If you reinvest those dividends, the income will grow faster. If you hold the dividend stock long term, and the company keeps raising its payout, that income stream will only get better with time.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| EIF | $58.05 | 34 | $2.64 | $89.76 | Monthly | $1,973.70 |
Bottom line
This is the kind of dividend stock that can really shine. It won’t double overnight, but it offers something more valuable in this market: dependability. It provides income you can count on, a business model that makes sense, and a management team that keeps delivering.
If you’re looking to invest $2,000 in the TSX today, it’s hard to ignore Exchange Income. It ticks all the boxes: monthly income, steady growth, and long-term value. It may not be the flashiest name, but it’s one of the smartest places to park your cash for the future.
