On August 9th, I added 42 shares of Exchange Income Corp. (TSX: EIF) to The Dividend Beginner’s portfolio. EIF.TO was reporting earnings on the market close of that day. I figured the results would have been good and took the risk. Net earnings were up 29% Y/Y with a payout ratio of 54% while free cash flow increased 13%; yet the stock price cratered. I’m not worried at all as I have a long time horizon and really enjoy partaking in the business.
I purchased the shares for $34.80, with a trading cost of $6.95 for a total cost basis of $1,468.55 with CIBC Investor’s Edge.
This is the second time I am purchasing shares in EIF, as it was a position I wanted to beef up. EIF is now the second largest position in my portfolio, second to Telus (TSX: T) by a couple hundred dollars. I first bought EIF for it’s generous dividend yield & monthly payouts as well as to increase my exposure to the Industrials sector and away from Financials and Energy.
EIF Now Makes up 8.74% of the Portfolio
Due to my increased stake in EIF, my exposure to the Industrials sector has grown by 3.8%. The financials exposure has come down to 27.4% of my portfolio, bolstered by the recent good earnings coming from the Canadian banks. Energy is now at 21.3%, while the rest are around or below 10%. Sector balancing will be an activity I focus on as I continue to build my portfolio.
Dividend Income increased 3.99%
|Annual Dividend Income||$2,118.86||$84.48||$2,203.34|
|Monthly Dividend Income||$176.57||$7.04||$183.61|