Exchange Income (EIF.TO)

EIF is showing solid momentum, up 15% YTD. Its last quarter was good and estimates have been ticking higher. The dividend continues to grow and the outlook is solid. It is on the expensive side of its historical valuation range, at 26X earnings. But, it has proven itself time and time again, and we think deserves some premium. We still like it. 
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Very safe to hold onto. Healthy dividend yield. Exposed to defense as well as Canada's North. Has other avenues to improve operating margins. Good company, business is growing quite nicely. Expects it to do a bit of M&A consolidation.

Everyone's looking to get exposure to defense, and this is absolutely one of the names that will benefit from capital flows.

One of the larger holdings in his income fund, with a 6% weight. Target price over $100, so he's not looking to get out. Firing on all cylinders. Great aviation assets in Northern Canada such as MedEvac. Can benefit from increased defence spending as Canada moves into the Arctic. Lots of levers to pull.

An acquirer in 2 verticals, aerospace and manufacturing. Aviation division up north is an essential service with great, contracted revenue for them. Surveillance segment operates globally. Recently got into matting for temporary roads to remote locations. The combination of businesses makes it more resilient when economic conditions change. 

After a dip, institutions are now warming up to the stock again. That's a big thing, as it drives demand. Amazing track record over 20 years of doing annual returns north of 20%, unbelievable and 3x that of the TSX. Loves management. Yield is 3.43%.

Passenger, cargo, and MedEvac air services. Intelligence and surveillance flights for Canada and other countries. Leasing and airline parts sales. Mainly in Canada's North, a play on growth there. Should benefit from increased defense spending. 

Traditionally a mishmash of businesses. Now coming together more cohesively. Attractive multiple of 7x EV:EBITDA. Yield is 3.41%.

Quite the compounder, albeit a sleepy one. Diversified businesses, and they don't all work in sync. Management has a private-equity mindset -- buy undervalued companies, deploy free cashflow within the business or make acquisitions. Firing on all cylinders. Bright outlook.

Likes the underlying businesses. Wait for a better entry point. Aviation segment might not do well in a weak economy. Many segments operate in the North as monopolies. CEO is fantastic, but what happens when he retires? Dividend still growing. She'd want to see it at least in $60s before looking at it.

It has done well creating long term value for shareholders. It is good at acquiring and integrating assets. Doesn't own but likes it.

Really likes the name, good business. Making all-time highs, expensive here. Doing all the right things, growing its dividend. Often the only airline in a Northern Canada region, so it's a monopoly. Owner/CEO is the real driving force, and she wants more clarity on the continuity plan. Yield is 4.2%.

The chart is very volatile. A rollercoaster. Is now breaking out and could keep going or pull back. If this breakout lasts for a while, he would buy it.

Chart looks very decent. At, or close to, an all-time high. Might see a bit of resistance, but looks to have some good upward motion. Trying to break out, and looks as though it can. Yield is 4.6%.

Could easily drop to $54. Not a lot of support below $50, so start reducing if it gets there.

Extremely well managed. Trying to buy a company in Australia that does search & rescue there. Likes it, in his income fund. Profitable businesses that are protected, with opportunities to grow.

Business is 80% aviation, 20% manufacturing. Recent acquisition looks accretive. Trades ~12x, growing ~16%. Money's flowing into safer areas like this one. Good balance sheet. Payout ratio is 68%, will probably boost dividend in the next year or two. Real growth engine is from being in the north and having really good pricing power.

Only thing is, if we're in for rocky markets, you'll probably get a chance to buy cheaper.

Their transportation business in the far north is largely a monopoly. They've bought some fine companies and pay a good dividend, but leaves little cash. So when they buy a company, they do an equity issue. Some of their businesses are highly protected with a moat, good. But their industrial business carries economic/tariff risk. Dividend, valuation and management are all good. An income, not a growth stock.

Would be less exposed to any tariffs imposed.