Updated on April 1st, 2026 by Felix Martinez
The industrial aerospace industry is not well-known for high dividends or even dividend growth in the U.S. and Canada. Exchange Income Corporation (EIFZF) is a unique Canadian business that acquires companies in the Aerospace, Aviation, and Manufacturing sectors.
Exchange Income’s acquisition and growth strategy has allowed the company to reward shareholders with regular dividend increases since its IPO. Combined with the high dividend yield of more than 5%, this stock should pique the interest of any income investor.
Beyond its high dividend yield, the stock is unique in that it pays monthly dividends rather than the traditional quarterly schedule. Monthly dividend payments are highly beneficial for investors who need to budget around their dividends (such as retirees).
There are currently only 117 monthly dividend stocks. You can see the full list of monthly dividend stocks (along with important financial metrics such as dividend yields and price-to-earnings ratios) by clicking on the link below:
Exchange Income Corporation’s high dividend yield and monthly dividend payments are two big reasons why this company stands out to prospective investors.
This is especially true given that the average yield on the S&P 500 Index is just 1.3% right now. By comparison, Exchange Income yields more than four times the average dividend yield of the S&P 500.
That said, proper due diligence is still required for any high-yield stock to ensure its sustainable payout. Fortunately, the dividend payout appears sustainable, making the stock attractive to income investors.
Business Overview
Exchange Income Corporation provides aerospace and aviation services, including scheduled airline and charter services, emergency medical services, after-market aircraft and engines, and pilot flight training services.
Additionally, the company invests in manufacturing window-wall systems for skyscrapers, vessels, and other industrial applications.
Finally, Exchange Income also owns telecom towers, which it leases to major telecom providers in America and Canada. The company, which is based in Winnipeg, Canada, generates just over $1 billion in annual revenue.
The corporation has two operating segments: Aerospace & Aviation and Manufacturing.
Source: Investor Relations
Aerospace and aviation make up the bulk of the company’s EBITDA. The company’s strategy is to grow its diversified portfolio of niche operations through acquisitions, providing shareholders with a reliable, growing dividend.
The companies acquired are in defensible niche markets, and EIC has made well over 30 acquisitions since its inception in 2004.
Acquisition candidates must have a track record of profitability and strong, sustained cash flow generation, with committed management focused on building the business post-acquisition.
Growth Prospects
Exchange Income’s results lagged in 2020 due to the negative impacts of COVID-19 on the aviation industry. Since then, the company has not only recovered but also achieved new top— and bottom-line records.
On February 24th, 2026, the company reported record fourth-quarter and full-year 2025 results, with strong growth across all key metrics.
In Q4, revenue increased 35% to $930 million, adjusted EBITDA rose 30% to $216 million, and net earnings jumped 83% to $52 million. EPS grew 62% to $0.94, while free cash flow reached $165 million (+49%), highlighting significant operating leverage and improved cash generation.
The payout ratio was 83% in FY2025 but is expected to drop to 49% this year, implying that earnings cover the dividend.
We have set our estimated 5-year compound annual growth rate of adjusted EPS to 7%.
We retain our dividend-per-share growth projections at around 2% for that period, slightly below the company’s historical (Canadian) average. A lower dividend growth rate will improve dividend safety over the long term, ensuring adequate coverage.
Dividend Analysis
As with many high-yield stocks, the bulk of Exchange Income’s future expected returns will come from its dividend payments. Management has been committed to increasing the dividend and rewarding shareholders, and they have done so since inception.
The cash dividend has increased 18-fold since 2004, and it is impressive that the company maintained the dividend even during the pandemic.
Source: Investor Relations
Today, the annualized dividend payout stands at C$2.77 per share. Of course, U.S. investors need to translate the dividend payout into U.S. dollars to calculate the current yield.
Based on prevailing exchange rates, the dividend payout is approximately $1.99 per share in U.S. dollars, yielding 2.6%. Exchange Income’s dividend growth has been stable and consistent over the long term.
Using projected 2026 earnings per share of $4.10, the stock has a dividend payout ratio of 49%. This means underlying earnings cover the current dividend payout with a decent cushion.
We view the stock as overvalued today. From a total return perspective, we see potential for nearly 4.0% annual returns. This will consist of the 2.6% dividend yield, 3% annual EPS growth, and a low single-digit contribution from multiple compression.
Final Thoughts
Exchange Income Corp’s high dividend yield and monthly dividend payments immediately appeal to income investors such as retirees.
Related: 3 Canadian Monthly Dividend Stocks With Yields Up To 6%.
This analysis suggests that the company’s dividend is safe, as measured by the non-GAAP metric of Free Cash Flow minus Maintenance Capital Expenditures.
The company appears slightly undervalued on a price-to-earnings basis. At the same time, it has a solid total return projection. As a result, Exchange Income Corporation appears to be a good stock pick for income investors and offers the potential for double-digit total returns over the next five years.
Don’t miss the resources below for more monthly dividend stock investing research.
- The Monthly Dividend Stocks List
- 20 Highest Yielding Monthly Dividend Stocks
- 10 Cheapest Monthly Dividend Stocks
- 10 Safest Monthly Dividend Stocks
- 3 Top ‘Hold Forever’ Monthly Dividend Stocks
And see the resources below for more compelling investment ideas for dividend growth stocks and/or high-yield investment securities.
- Dividend Kings: 50+ years of rising dividends
- Dividend Champions: 25+ years of rising dividends
- Dividend Aristocrats: 25+ years of rising dividends and in the S&P 500
- Dividend Achievers: 10+ years of rising dividends and in the NASDAQ
- High Dividend Stocks: 4%+ dividend yields
- Blue Chip Stock: Kings, Aristocrats, and Achievers
- MLPs: List of MLPs and more
- REITs: List of REITs and more
- BDCs: List of BDCs and more