Dividend History

Dividend Policy

Exchange's dividend policy is to pay cash dividends to Shareholders in each monthly period based on funds generated and received from the subsidiaries. In determining the amount to send to the Company the subsidiaries take into consideration their requirements for maintenance and growth capital.

The level of dividends is examined on an ongoing basis by the directors of the Company, and should the cash generated exceed the requirements for investment in maintenance and growth opportunities, the level of dividends will be reevaluated.

Cash dividends are made to the shareholders of record on the last day of each month (unless such day is not a business day, in which case the date of record shall be the prior business day) and shall be payable on the 15th day of the following month or, if such day is not a business day, the prior business day or such other date as determined from time to time by the directors of the Company.

Eligible Dividends

For the November 2009 dividend and unless stated otherwise, all dividends paid thereafter are designated as "eligible" dividends under the Income Tax Act (Canada) and any corresponding provincial legislation. Under this legislation, individuals resident in Canada may be entitled to enhanced dividend tax credits which reduce income tax otherwise payable.

October 2009

The October 2009 dividend consists of two dividends:

For purposes of the enhanced dividend tax credit rules contained in the Income Tax Act (Canada) and any corresponding provincial and territorial tax legislation, the dividend in the amount of $0.06 and payable on November 13, 2009 to shareholders of record on October 31, 2009 to Canadian residents on all of our common shares, are designated as "eligible dividends".

Treatment of Dividends for US Tax Purposes

Exchange Income Corporation believes that its dividends are "Qualified Dividends" for U.S. tax purposes and therefore could be eligible for the reduced dividend rate of tax, unless the fact situation of a particular U.S. individual shareholder determines otherwise.

Refer to Page 22 of the IRS 2009 Form 1040 Instruction booklet for examples of individual situations where the dividends are not "Qualified Dividends". In the cases that the amount is not a "Qualified Dividend" due to individual situations, it should be reported on your U.S. federal income tax return as an Ordinary Dividend.

Dividend History

On July 29, 2009, Exchange was converted from an Income Trust to a corporation. As such, prior to July 29, 2009, cash payments to Unitholders were treated as income trust distributions, and subsequent to this date, the cash payments to Shareholders will be treated as dividends.

Below is the dividend history for 2018, 2017, 2016, 2015 and 2014 for Exchange. For Exchange's dividend and distribution history since its inception on March 22, 2004 see the following link.