Exchange Income Corporation: Yielding Dependable and Growing Dividends

With multiple revenue streams in markets around the global Exchange Income Corporation (EIF) offers diversity, growth and income all-in-one.  If that’s not enough for you, here are 5 reasons why EIF is beating the index.

The Metrics (Since 2011):  Growing revenues, earnings and free cash flow to provide shareholders with stable and growing cash dividends.

  • Revenue CAGR 13.6%
  • EBITDA CAGR 20.2%
  • Free Cash Flow CAGR 20.3%
The Dividend:  Stable, covered by cash flow and growing

  • Member of the S&P/TSX Canadian Dividend Aristocrats Index
  • Monthly Dividend of $0.175
  • Current Yield (as of March 10): 5.376%
  • Payout ratio: 61%
  • 11 dividend increases in 12 years

Diversified Businesses:

EIF focus on profitable, well-established family-owned or closely held businesses with strong cash flows and which operate in niche markets.

  • Scheduled Passenger Services
  • Cargo Handling
  • Fire Suppression and Evacuation Services
  • Medevac Transportation
  • Maritime Surveillance Solutions
  • Airpot Fixed Base Operations
  • After-Market Aviation Equipment Sales
  • Customized Steel Tanks
  • Precision Metal Manufacturing
  • High Pressure Water Cleaning Systems
  • Communication Tower Construction and Installation

Recent Activity: 

        • The C295 team, comprised of Provincial and Airbus Defence and Space, was awarded the Fixed Wing Search and Rescue Aircraft Replacement Program contract.
        • Completed the strategic acquisition of CarteNav, a leading software developer providing intelligence, surveillance, reconnaissance and situational awareness software solutions.
        • Completed the acquisition of Team J.A.S., a parts and maintenance repair services company that has specialized in Twin Otter aircraft for 30 years
        • Announced the expansion of our leasing business in Ireland enabling future growth of this important
        • Added to the S&P TSX Composite Index on December 16, 2016.
Value: Closed a bought deal equity offering with gross proceeds of $98 million from the issuance of 2,303,450 shares ($42.45 per share) in January 2017.  Current share price discount to new issue:  approximately ~8%.

Source: Exchange Income Corp.