If you love the idea of a paycheque landing in your account every single month, one little-known Canadian dividend stock is worth a closer look.
The company just reported one of its strongest quarters ever and rewarded shareholders with a dividend hike.
Notably, the TSX dividend stock has returned more than 600% in dividend-adjusted gains over the last 10 years. Despite these market-beating returns, the monthly dividend stock offers a 2% yield as of August 2026.
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A Canadian dividend stock built for monthly income
Exchange Income Corporation (TSX:EIF) is a diversified company that owns businesses in aviation and manufacturing. These include medevac flights in Manitoba, cargo routes across the Canadian Arctic, aircraft parts and leasing, and specialty manufacturing such as composite mats used on major construction projects.
Management aims to acquire fundamentally strong companies in niche verticals. It then lets the existing teams keep running these acquired businesses and funnels the combined cash flow back to shareholders every month.
The monthly payment is a key reason income-focused investors keep this dividend stock on their radar. Instead of waiting three months between cheques, you get paid 12 times a year.
The company’s second quarter of fiscal 2026 was its best on record. Revenue, adjusted EBITDA (earnings before interest, tax, depreciation, and amortization), net earnings, adjusted net earnings, and free cash flow all hit Q2 highs. In the June quarter, Exchange Income grew adjusted earnings per share by 23% to $1.13.
The results were strong enough that management raised its full-year adjusted EBITDA guidance to $890 million to $920 million. It is the third guidance increase this year, up from an original range of $825 million to $875 million.
Notably, Wall Street projects adjusted earnings per share to expand from $3.61 in 2025 to $6.30 in 2028.
Why the monthly dividend stock keeps raising its payout
Alongside those results, the board increased the annualized dividend from $2.76 to $2.88 per share. What stands out is how the company approaches these increases.
CEO Michael Pyle explained the philosophy on the earnings call. He said the company has “consistently communicated with our shareholders that we only intend to increase the dividend when we can reduce the proportion of our cash flow and profitability being directed toward the dividend.”
The free cash flow less maintenance capital expenditures payout ratio dropped to 55%, near an all-time low. The adjusted net earnings payout ratio fell to 65%, also a record low. In plain terms, the company is paying out a smaller slice of a much bigger pie, even after raising the dividend. Analysts expect free cash flow to increase from $239 million in 2025 to $511 million in 2030, which should drive future dividend hikes.
The aviation segment landed new contracts, including work with Air Greenland and an expanded agreement with Air Canada. Demand for medevac services, cargo, and charter flights remains strong across the board.
On the manufacturing side, the company has sold all of its 2026 output and a new plant is being built in Mississippi to triple capacity. The window manufacturing business, once a weak spot, is also recording its best bookings in years.
Add in a strong balance sheet, with leverage near historic lows and more than $2 billion in available liquidity, and it looks like a company with plenty of runway left.
The bottom line for income investors
Given the record quarter, three guidance increases in a single year, a freshly raised monthly dividend, and payout ratios sitting at record lows, EIF is a quality TSX dividend stock with strong fundamentals.
