CA - Exchange Income: A Steady Flight Path

2024-04-18 00:03:55 ET

Summary

• Exchange Income has grown from a single regional airline to a diversified aeronautical and manufacturing business with a market capitalization of CAD 2.2bn.
• EIF has achieved a 19% CAGR of shareholder returns over its 20-year history and has a focus on rewarding shareholders with growing dividend income.
• The company's long-term contracts and low volatility earnings in the aviation segment make it an attractive choice for low volatility income investors.
• The business profile is diversifying into growth segments.

Exchange Income (EIF:CA) is a diversified aeronautical and manufacturing business with a focus on regional and specialty aviation. EIF is based in Winnipeg, Canada. In its 20-year history, EIF has grown from a single regional airline to reach a market capitalisation of CAD 2.2bn and provided its shareholders with a 19% CAGR of shareholder returns over the period.

Its successful strategy has been via a consistent track record of acquisition of adjacent and complementary businesses, a total of 31 acquisitions over the period.

As its name implies, Exchange Income has a focus on rewarding its shareholders with growing dividend income, which it has done with a 5% dividend CAGR for two decades. Current yield is 5.8%....

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