On May 11th, I added 75 shares of Exchange Income Corporation (TSE: EIF) to The Dividend Beginner’s portfolio. I purchased the shares at the high price of $32.18, with a trading cost of $6.95 for a total cost basis of $2,420.45. This is one of the largest one-time stock purchases I’ve made to date. I have a firm belief in the future of this company after they released Q1 2016 results and increased their net earnings by 957%.
My position in EIF.TO accounts for 5.82% of my total portfolio value, and increases my exposure to the Industrials sector to 9.00%, which is a huge improvement over before. As you can see, my diversification definitely still has a long way to go; being skewed so heavily towards financials. Not to mention, I have no positions in Basic Materials, Consumer Staples, Healthcare, or Technology.
Dividend Income Up 8.29%
Exchange Income Corporation pays a monthly dividend of $0.1675, which is $2.01 annualized. My initial yield on cost works out to 6.25%.
Exchange Income Corp. adds $150.72 to my annual dividend income, or $12.56 per month. EIF.TO has increased their dividend 11 times out of the past 12 years, only keeping it constant throughout 2009 – 2010, which I forgive them for.
My 12-month forward dividend income has risen from $1817.24 to $1,967.96, and my monthly dividend income is now $164.00… Wow, is all I can say. I’m definitely going for the $200 before the end of 2016.
|Annual Dividend Income||$1,817.24||$150.72||$1,967.96|
|Monthly Dividend Income||$151.44||$12.56||$164.00|