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Dividend payments vary in frequency, although most publicly traded companies on the TSX pay quarterly or four times a year. Investors look for dividend paying stocks to enjoy regular and recurring income streams. The reason for quarterly payments may be due to the usual quarterly reports from companies.
However, a privileged few on the Toronto Stock Exchange pay monthly dividends. Exchange income company (TSX: EIF) and Atrium Mortgage Investment Corporation (TSX: AI) are two high yield monthly income stocks. They should be attractive to income investors who need instant cash. You can also incorporate dividends into your monthly budget. Plus, money builds up faster if you can reinvest dividends 12 times a year, not four.
Fully diversified company
Exchange income is not among the regular performers this year. At $ 43.34 per share, the year-to-date gain is 23.96%. For potential investors, the dividend offer is 5.29%. This industrial action is best as an add-on or second line in a dividend portfolio.
The $ 1.64 billion company has a fully diversified business that spans various industries. It works for the benefit of management as it helps Exchange Income weather economic cycles. The company operates in the aviation sector and provides scheduled passenger services, cargo handling and medical evacuation transport.
Foreign exchange income is also present in the communications, maritime and manufacturing sectors. The company suffered in 2020 due to the fallout from the pandemic, although financial performance has improved significantly this year. The growth of its turnover and EBITDA in the first half of 2021 is 13% and 22% compared to the same period in 2020.
Notably, net income was $ 23.63 million, compared to a net loss of $ 2.66 million in the first half of 2020. Exchange free cash flow also increased 22% to 98 , $ 9 million. The two industries, aerospace and aerospace and manufacturing, posted strong results.
Management states that the fundamental objective of Exchange Income is to pay stable and growing dividends to shareholders. He adds that the core strategy of diversification and disciplined investing is the reason cash flow is stable.
Highest portfolio balance
Atrium Mortgage Investment is a dividend beast. In addition to the astounding performance, the stock enjoys a strong buy rating from market analysts. The stock price is $ 14.41 (+ 20.21% year-to-date), while the dividend yield is 6.19% if you invest today.
According to management, the $ 614.4 million (non-bank) mortgage lender is filling the credit gap caused by the shortage of financial institutions in Canada. The target market is urban center borrowers, primarily where the stability and liquidity of real estate is evident.
Although the rates are higher than those of the banks, the use of mortgages is high due to the flexibility, creativity and speed of Atrium. Unlike banks’ structured loan programs, the company tailors solutions for clients. All mortgages are secured by all types of real estate (residential, multi-residential and commercial).
After the nine months ended September 30, 2021, net income increased 6% compared to the same period in 2020. The mortgage portfolio balance of $ 765.7 million at the end of the third quarter 2021 was the balance of highest Atrium portfolio in its history.
Potential monthly income
The average annual dividend yield on Foreign Exchange Income and Atrium Mortgage Investment is 5.74%. Therefore, a combined investment of $ 42,000 ($ 21,000 each) will generate a monthly income of $ 200. Assuming you own the stock for a decade and reinvest the dividends each time, the money will rise to $ 73,390.92.