Publicly-listed companies create demand for their stocks through their dividend policies. These firms distribute or share profits with shareholders subject to board approval. Most dividend payers on the TSX pay quarterly dividends. However, some income investors prefer monthly payouts similar to regular paychecks.
A select few Canadian stocks offer monthly dividends. Exchange Income Corporation (TSX:EIF) is a buying opportunity today for its depressed price. At $49.24 (-15.27% year to date), the undervalued stock pays a generous 5.48% dividend. A $21,911.80 investment (445 shares) transforms into $100.06 in monthly passive income.
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Business overview
Exchange Income Corporation, or EIC, takes pride in its business model that supports dependable monthly dividends. The $2.47 billion company derives revenue from two main operating segments: Aerospace & Aviation and Manufacturing. Its 19 subsidiaries deliver essential products and services to niche markets, including medevac (medical evacuation).
In northern Canada, the transportation segment enjoys a monopoly. Because of the diversity of the operating subsidiaries, EIC can weather or overcome economic cycles and market fluctuations. The stock’s current weakness is temporary and should seek its real value as the economic environment improves.
Strength in numbers
Under the current setup, EIC allows subsidiary companies to operate autonomously, retain management teams, and maintain individual business identities. Since 2004, EIC has been buying companies to be part of its family and paying monthly cash dividends. The goal is to strengthen acquired companies by nurturing and supporting their growth opportunities. Also, the collective strength of the diversified portfolio assures success in delivering reliable shareholders’ returns regardless of market conditions.
Latest financial results
Many of EIC’s subsidiaries are celebrating milestone anniversaries in 2025 since their inception. According to management, fiscal 2024 represented a step-based improvement upon the foundations built in prior years. Moreover, the businesses have remained resilient, providing great diversification to weather any external events.
In the 12 months ending December 31, 2024, total revenues increased 6.46% to $2.66 billion versus 2023. Net earnings dipped 1% year over year to $121.2 million. In the fourth quarter (Q4) of 2024, the revenue of $688 million and free cash flow (FCF) of $111 million were both record highs. The aerospace and aviation segment’s record results were due to contractual wins, including medevac contracts in Manitoba and BC.
“2024 has been another record year, and it continues to demonstrate the strength of our model,” said Mike Pyle, chief executive officer of EIC. “The collective businesses provide us with diversification and resilience, which is readily evident in our 2024 reported financial results.”
On February 24, 2025, the acquisition-oriented company signed a binding purchase agreement to buy Bradley Air Services Limited, which operates as Canadian North. Pyle added, “I am even more excited about the next 20 years as we embark on further growth, including the most recently announced acquisition of Canadian North.”
EIC and Canadian North’s business operations are highly complementary. EIC can expand its presence in Canada’s northernmost geography.
Long-term hold
Exchange Income Corporation has met or kept investors whole, without fail, on its monthly dividend commitment since 2004. The incredible feat lends confidence to buy and hold the stock for the long term.
