Maxed Out my Industrials Exposure with EIF.TO

Exchange Income Corp. is a Monthly Dividend Superstar

On August 9th, I added 42 shares of Exchange Income Corp. (TSX: EIF) to The Dividend Beginner’s portfolio. EIF.TO was reporting earnings on the market close of that day. I figured the results would have been good and took the risk. Net earnings were up 29% Y/Y with a payout ratio of 54% while free cash flow increased 13%; yet the stock price cratered. I’m not worried at all as I have a long time horizon and really enjoy partaking in the business.

I purchased the shares for $34.80, with a trading cost of $6.95 for a total cost basis of $1,468.55 with CIBC Investor’s Edge.

This is the second time I am purchasing shares in EIF, as it was a position I wanted to beef up. EIF is now the second largest position in my portfolio, second to Telus (TSX: T) by a couple hundred dollars. I first bought EIF for it’s generous dividend yield & monthly payouts as well as to increase my exposure to the Industrials sector and away from Financials and Energy.

EIF Now Makes up 8.74% of the Portfolio

Due to my increased stake in EIF, my exposure to the Industrials sector has grown by 3.8%. The financials exposure has come down to 27.4% of my portfolio, bolstered by the recent good earnings coming from the Canadian banks. Energy is now at 21.3%, while the rest are around or below 10%. Sector balancing will be an activity I focus on as I continue to build my portfolio.

Investment Diversification

Dividend Income increased 3.99%

Before Net Increase After
Annual Dividend Income $2,118.86 $84.48 $2,203.34
Monthly Dividend Income $176.57 $7.04 $183.61
Percentage Increase +3.99%

 

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