This High-Yielding ETF Has Risen by Around 20% in the Past Year
If you’re investing in dividend stocks, you’ll want to consider holding a position in top exchange-traded fund (ETF), which can help you diversify and potentially generate strong returns. By focusing on stocks with strong fundamentals and solid track records of paying and increasing dividends, you can be in a great position to benefit from rising values and dividend income.
One ETF that focuses on Canadian dividend stocks that have steady or increasing payouts is the iShares Core MSCI Canadian Quality Dividend Index ETF (TSX:XDIV). It yields 4.1%, making it a stellar option if your main criteria is to generate a lot of dividend income. Plus, over the past 12 months, the ETF has risen by around 20% in value. When including its dividend, your total returns are up to around 25%. That’s a terrific performance for an ETF that’s focused on long-term safety.
Its expense ratio of 0.11% is light, and the fund gives you a position in 21 top Canadian stocks, including names such as Toronto-Dominion Bank (TSX:TD)(NYSE:TD), Suncor Energy (TSX:SU)(NYSE:SU), and Fortis (TSX:FTS)(NYSE:FTS). The main downside of the ETF may be that it doesn’t have more holdings, but with it focusing on the best dividend stocks in Canada, you arguably don’t necessarily need more than the stocks it already has in its portfolio. By diversifying too much, your gains are likely to be much lighter.
This can be a great ETF to put in your portfolio and hang on to for years, for not only the dividends you’ll earn but also for the potential for these stocks to rise much higher in the future.
