Hey, you — are you licking your wounds from a dividend stock that turned sour? You’re in good company; even seasoned investors find themselves caught off guard every now and then.
But, let’s face it, constantly screening a plethora of stocks, tracking earnings reports, and analyzing financials can be downright exhausting.
If you’re ready to bypass this heavy lifting while still reaping the benefits of dividend investing, it might be time to consider a strategic pivot.
Enter dividend exchange-traded funds (ETFs). These nifty investment vehicles do the grunt work for you, packaging a selection of dividend-paying stocks into a single, tradeable fund that you can buy like any other stock.
Whether you’re seeking a steady stream of income, growth potential via reinvested dividends, or a balance between the two, there’s likely an ETF that aligns with your financial goals.
Today, I’ve sifted through the offerings and handpicked three iShares ETFs that stand out, each bringing a unique approach to Canadian dividend investing.
XEI for high yields
If you’re looking for higher than average dividend income from your Canadian stocks, consider iShares S&P/TSX Composite High Dividend Index ETF (TSX:XEI), which isolates the highest-yielding 74 TSX listed stocks.
As of November 1, investors can expect a 5.54% trailing yield. As a bonus, XEI also pays monthly dividends. The ETF charges a reasonable 0.22% expense ratio, making it the cheapest on today’s list.
CDZ for dividend growth
If you’re more of a dividend-growth investor, the ETF to watch instead is iShares S&P/TSX Canadian Dividend Aristocrats Index ETF (TSX:CDZ). This ETF currently holds 90 stocks that have grown dividends for at least five years in a row.
Compared to XEI, CDZ has a slightly lower 12-month yield of 4.27%, but historically, it has provided a better total return. However, it is more expensive, with a 0.66% expense ratio, so be aware of that.
XDV for dividend quality
I personally like iShares Canadian Select Dividend Index ETF (TSX:XDV). This ETF tracks the Dow Jones Canada Select Dividend Index, which holds 30 stocks screened for dividend growth, yield, and payout ratio.
What this means is that you get a potent combination of high dividend yield, dividend growth, and dividend quality in a single ETF. XDV pays a 5.03% 12-month trailing yield and charges a 0.55% expense ratio.
Before you consider Ishares S&p/tsx Canadian Dividend Aristocrats Index Etf, you’ll want to hear this.
Our market-beating analyst team just revealed what they believe are the 5 best stocks for investors to buy in November 2023… and Ishares S&p/tsx Canadian Dividend Aristocrats Index Etf wasn’t on the list.
The online investing service they’ve run for nearly a decade, Motley Fool Stock Advisor Canada, is beating the TSX by 24 percentage points. And right now, they think there are 5 stocks that are better buys.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
