Exchange Income Corp. Flies to Top Portfolio Position

exchange income corp logo

On May 3rd, I added 33 shares of Exchange Income Corp. (TSE: EIF) to The Dividend Beginner’s portfolio.

I purchased the shares at $33.75, with a trading cost of $6.95 for a total investment of $1120.70.

This pushes my total cost basis for my collection of 150 EIF shares to $5,014.95 (includes commissions).

My last purchase was in August 2016, where I purchased 42 shares of EIF.

Originally I had opened this position in May 11 of 2016, with a starting 75 shares of EIF.

Yield on cost rounds out to 6.28%

The per share cost basis in this 33 share purchase round comes out to $33.96. With an annual dividend of $2.10, my yield on cost here is 6.18%.

In my first purchase of 75 shares, the per share cost basis rounds out to $32.27; yielding 6.51% on cost.

In my second purchase of 42 shares, the per share cost basis rounds out to $34.97; yielding 6.01% on cost.

Now with my combined 150 shares of EIF, my average cost basis comes out to $5,014.95, or $33.43 per share.

With an annual dividend of $2.10, my final yield on cost remains a juicy 6.28%.

Industrial exposure increased to 11%

Portfolio exposure to the Industrial sector has increased from 9.06% to 10.77%. Exchange Income Corporation now accounts for 8.6% of my overall portfolio, and is my largest holding by market value.

The positions I count towards my Industrial exposure are Exchange Income Corporation and W. W. Grainger.

Portfolio Diversification

Dividend Income increased 2.45%

My 33 new shares in Exchange Income Corp. add $69.30 to my annual dividend income, or $5.76 averaged per month.

Previously I earned $245.70 per year due to my 117 shares in EIF. This accounted for 8.68% of my overall dividend income.

Combining my new annual dividend income with my previous, I now earn $315 per year from EIF, accounting for 10.86% of my overall dividend income. This averages out to $26.25 per month, up from $20.48.

My 12-month forward dividend income has increased from $2,830.53 to $2,899.83, an increase of 2.45%.

Before Net Increase After
Annual Dividend Income $2,830.53 $69.30
Monthly Dividend Income $235.88 $5.775 $241.65
Percentage Increase +2.45%

2 Replies to “Exchange Income Corp. Flies to Top Portfolio Position”

  1. I’ve been eyeing that stock for awhile, I haven’t invested since I’m not very fond of airlines, but the dividends are appealing.

    Also your portfolio page is broken.

    Thanks for sharing your ideas 🙂

  2. Exchange Income has always been one of those companies I figured I’d eventually own, but never ended up buying. Although it’s had an amazing run, my avoiding the name may have actually been for the better.

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