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 up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
