I Diversified My Income Stream With Exchange Income Corp.

Exchange Income Corp. is a Monthly Dividend Superstar

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%.

Portfolio Diversification

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.

Investment Diversification

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.

Before Net Increase After
Annual Dividend Income $1,817.24 $150.72 $1,967.96
Monthly Dividend Income $151.44 $12.56 $164.00
Percentage Increase +8.29%

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