A good monthly paying dividend stock. That sounds like a dream to every income-seeking investor. Fortunately, unlike that dream, where you win the lottery and live happily ever after, this dream can come true!
Exchange Income Corporation (TSX: EIF) is a good monthly paying dividend stock that should be on the radar of investors everywhere.
Image source: Getty Images
Meet Exchange
Winnipeg-based Exchange is an acquisition-focused company. Exchange owns over a dozen subsidiaries that are broadly classified under aviation and manufacturing segments.
By way of example, on the aviation side, Exchange operates a flight school and operates airlines that provide cargo and passenger service to Canada’s remote north regions. Turning to the manufacturing segment, examples include cell phone tower fabrication and custom manufacturing for the defence and aerospace industry.
Those segments are unique in that they cater to specific niches in the market and generate a profit. At times, one subsidiary may lean on another to drive business from one segment to another. For example, flight school graduates may have an opportunity to work within one of Exchange’s airlines.
This diversified model ensures defensive appeal, revenue generation, and growth potential.
Also worth noting is that Exchange maintains an aggressive stance towards growth. A recent example of this is the whopping $205 million deal for Canadian North.
Canadian North provides crucial service to Canada’s northern regions, and thanks to this deal, Exchange is now connected to significantly more of the northern market. The deal also includes aircraft, infrastructure and even government partnerships in the north.
Let’s talk income
One of the primary reasons why investors continue to turn to Exchange is because of its monthly dividend. In short, Exchange is a good monthly paying dividend that can offer passive growth and a juicy yield.
As of the time of writing, Exchange offers a tasty 3.62% yield. For those investors with $25,000 to invest, that works out to a monthly income of just over $75.
Keep in mind that investors who aren’t ready to draw on that income yet can choose to reinvest those dividends. This will allow any eventual income to continue growing until needed.
Speaking of growth, prospective investors should also note that Exchange has bumped that dividend 17 times in the past two decades. The company also plans to continue that cadence, making this a good monthly paying dividend stock a must-have for any investor.
Exchange is a good monthly paying dividend stock
No stock is without some risk. Exchange offers investors an opportunity to invest in over a dozen subsidiaries, each with defensive appeal and growth potential. Those subsidiaries also fund a superb dividend that continues to grow.
In my opinion, Exchange isn’t only a good monthly paying dividend stock, it’s a great investment option that should hold a small position in any well-diversified portfolio.
Buy it, hold it, and watch your portfolio grow.
