For income-focused investors, stocks that pay monthly dividends can be a valuable source of steady cash flow. Whether used to cover living expenses or reinvested into other income-producing assets, monthly dividends offer quicker compounding than quarterly or semi-annual payments.
While real estate, mortgage, and energy sectors are typically the go-to sources for monthly income, investors willing to dig deeper can find a handful of companies in other industries with the financial strength to support monthly payouts. In some cases, these lesser-known stocks also offer an attractive combination of dependable income and long-term capital growth.
Exchange Income Corporation: A Monthly Income Gem
One such standout is Exchange Income Corporation (TSX:EIF). Trading around $65.94 per share and with a market capitalization of $3.3 billion, EIF offers a monthly dividend of $0.22 per share, translating to a 4.2% annual yield.
Impressively, the company has raised its dividend 17 times since 2004, with a compound annual growth rate (CAGR) of 5%. An investment of $10,000 today would earn you about $33.22 per month—a figure that’s likely to grow if EIF continues its steady pattern of dividend increases.
Also Read: Reliable TSX dividend stocks 2025
What Does Exchange Income Do?
Exchange Income operates a diverse portfolio of aerospace and industrial businesses. In the aerospace segment, the company provides vital air transportation services to remote northern Canadian communities—delivering essential supplies, medical care, and passenger services. This is complemented by its aerospace parts and leasing business.
Its industrial segment includes niche leaders in sectors like construction mats, tank fabrication, and wireless infrastructure—industries that require specialized knowledge and often face limited competition.
Also Read: Safe Investments for New Investors
Growth Through Smart Acquisitions
A key part of EIF’s growth strategy has been consistent acquisitions. In early 2025, the company acquired the assets of Bradley Air Services, operator of Canadian North airline. This acquisition fits seamlessly into EIF’s existing business and is expected to be highly accretive over time.
In its latest quarter, Exchange Income reported strong results:
- Adjusted EBITDA rose 17% to $130 million.
- Adjusted earnings per share jumped 40% to $0.28.
- Free cash flow reached $81 million, or $1.47 per share.
While the dividend payout ratio based on earnings is above 100%, the free cash flow payout ratio is a comfortable 63%—indicating the dividend is well covered. The company retains enough cash to support both ongoing dividend payments and future acquisitions.
As Exchange Income continues to scale and diversify, its stock is likely to become increasingly resilient—making it a compelling choice for long-term, income-seeking investors.
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