This is a guest post from The Dividend Beginner.
Hello readers, I am The Dividend Beginner, a 22-year old Canadian dividend growth investor from Montreal.
I started following other DGI sites after I made my first stock purchase in the Vanguard US Total Stock Market Index ETF (TSE: VUN).
Once I realized the benefits of dividend growth investing from an assortment of blogs, Sure Dividend being one of my favorites, I decided I too would become a dividend growth investor, with a focus on Canadian stocks.
I sold my shares in VUN shortly after and began my DGI journey. In one year I’ve built up a passive income stream consisting of an average dividend income of $150 per month.
I plan to be financially independent in my 30’s, though I don’t have it all planned out in full detail now. By day I’m a full-time software developer, and in my free time I enjoy reading about finance, the economy, and stocks, investing in dividend growth stocks, and developing apps and websites.
You can also engage with me @dividendbegin on twitter.
I agree with the notion you shouldn’t purchase stocks based on the frequency of dividend payments. One should not purchase stocks solely because they pay dividends every month rather than every quarter, or half-year. With that said, in this post we’ll take a look at some stocks which pay high-yielding monthly dividends, and have stellar valuations, growth, dividend growth, and business models.
Considering I’m a Canadian investor, we’ll take a look at some great stocks which trade on the TSX. The majority of the audience is most likely U.S. investors, realize that you can snag up these stocks at an even greater discount considering the USD to CAD exchange rate. In that way, these yields are effectively even larger for a U.S. investor.
Exchange Income Corporation (TSE:EIF)
Exchange Income Corporation (EIF.TO) is an absolute killer stock trading at a beautiful valuation. Exchange Income Corp. is a diversified, acquisition-oriented corporation which focuses on aviation services and equipment, and manufacturing. It’s really very rare to find a high-yielding, dependable dividend growth stock in the industrial sector trading on the TSX.
Exchange Income Corporation (TSE:EIF) is up 38% in the past 52 weeks, and now yields 5.97%, though last week it yielded nearly 7.00% since the share price has skyrocketed up 10% in the past 5 days.
Exchange Income Corp. has a very narrowly defined acquisition strategy to purchase companies which are or can be income generating vehicles so that the income can be paid out to shareholders in the form of dividends and also reinvested to acquire even more companies – rinse and repeat.
For example, in 2015, Exchange Income Corporation (TSE:EIF) acquired Provincial Aerospace and Ben Machine Products, as they diversify their revenue streams geographically into Atlantic Canada and Quebec, and diversify by sector as they branch out into defence.
In fact, Exchange Income Corp. just recently release record first quarter financial results with a 5% dividend increase. In first quarter 2016, EIF.TO increased their net earnings by 957%.