Invest in High-Quality Canadian Dividend Stocks With This ETF
Want to generate a lot of dividend income, while also staying safe in the market right now? That can be difficult but a good way to accomplish that is via a top Canadian exchange-traded fund (ETF).
The iShares S&P/TSX Canadian Dividend Aristocrats Index ETF (TSX:CDZ) offers investors a high yield of around 3.8%. And with the ETF focusing on dividend growth stocks, your dividend income is likely to increase over the years. Another reason you’ll like the ETF is that it makes payments on a monthly basis. Dividend stocks normally pay every quarter, but with this ETF, you’ll collect a much more regular stream of cash flow.
The fund charges an expense ratio of 0.66%, which isn’t terribly low but it is comparable to other, similar ETFs. And given all the income you’ll earn from holding it, those fees may not be all that troubling.
Plus, you’ll get a lot of valuable diversification from this ETF. It has 88 holdings and gives you a position in many top Canadian companies, including Telus (TSX:T)(NYSE:TU) and Toronto-Dominion Bank (TSX:TD)(NYSE:TD).
Its focus is on stocks in the financial, energy, real estate, and utility sectors. Those are fairly stable sectors which can help make this ETF a good long-term investment to hang on to. In five years, it has risen by around 65% in value, and that’s without factoring in its dividend payments during that stretch.
Whether you want safety or just a lot of consistent dividend income for your portfolio, this can be an excellent ETF to stay invested in for both the short term and the long term.
