EIF.TO Raises Dividend by 4.5% for the Second Time this Year

exchange income corp logo

On November 9th, the CEO of Exchange Income Corp. announced: “for the 12th time in our history, the fourth time in the last 24 months, and the second time this year, we are increasing our dividend. Effective with our November dividend, the dividend will increase to an annualized rate of $2.10 up 4.5%. During this two year period, inflation in Canada has totaled approximately 3%, while our dividend has increased 25%.” (exchangeincomecorp.ca)

Before Net Increase After
Annual Dividend $2.01 $0.09 $2.10
Monthly Dividend $0.1675 $0.008 $0.175
Percentage Increase 4.48%

Exchange Income Corp. has really been killing it in the past year and their dividend payout ratio has been improving; now at 54% for the third quarter of 2016, and 60% YTD.

EIF.TO is the only Industrials stock left in my portfolio after recently selling my shares in SNC-Lavalin and Magna International. I am currently sitting on a 26% gain after initially purchasing in May, and then dipping my feet in a second time. It has taken over my portfolio as my largest position, with Alaris Royalty now trailing it after the large drop.

Dividend Income increased 0.45%

Considering the Dividend Beginner portfolio contains 117 shares of EIF, my annual income from EIF has increased by $10.70, from $235.00 to $245.70. My 12-month forward dividend income has increased from $2,323.64 to $2,334.34, an increase of 0.46%. My income from EIF accounts for 10.51% of my annual dividend income.

While a $10.70 increase in annual dividend income seems quite low, think about how it would require an investment of $213.15, at a yield of 5.02% (EIFffffff’ dividend yield) to generate $10.70 in dividend income. That’s the equivalent of getting one to twenty-one hours of your life back, depending on your wage.

Before Net Increase After
Annual Dividend Income $2,323.64 $10.70 $2,334.34
Monthly Dividend Income $193.64 $0.88 $194.53
Percentage Increase 0.46%

Leave a Reply

Your email address will not be published.