Pros & cons of how dividend ETFs pick stocks

Companies that pay regular and growing dividends have performed very well over time compared to broad market indices.
A simple strategy capitalizing on that is to select ETFs holding stocks with a long history of uninterrupted dividend growth such as represented by the S&P 500 Dividend… Read More

Q: Pat, would you please give me your advice on the iShares S&P/TSX Composite High Dividend Index ETF.

A: The iShares S&P/TSX Composite High Dividend Index ETF, $21.31, symbol XEI on Toronto (Units outstanding: 20.2 million; Market cap: $430.5 million; www.blackrock.com/ca), aims to track the S&P/TSX Composite High Dividend Index, which effectively holds the 75 highest-yielding Canadian stocks.

The index is market-capitalization weighted, with… Read More

Four dividend ETFs—four strategies

Rising interest rates mean dividend-paying stocks and fixed-income instruments must increasingly compete for investor interest. However, sustainable dividends still offer an attractive and growing income stream for investors (see supplement on page 50).
Here are four ETFs that provide exposure to Canadian, U.S. and international dividend… Read More

Pat: Would you please give me your opinion on two ETFs: PowerShares International Dividend Achievers Portfolio ETF and the WisdomTree Trust DEFA Fund? Thank you.

PowerShares International Dividend Achievers Portfolio ETF, $17.94, symbol PID on Nasdaq (Units outstanding: 85.4 million; Market cap: $1.5 billion; www.invescopowershares.com), aims to mirror the performance of the Nasdaq International Dividend Achievers Index. Its MER is 0.54%, and it yields 1.9%.

The Nasdaq International Dividend Achievers Index… Read More

Pat: What do you think about these three ETFs: iShares Canadian Financial Monthly Income ETF, iShares Global Monthly Dividend Index (CAD-Hedged) ETF and the iShares S&P/TSX Canadian Dividend Aristocrats Index ETF?

iShares Canadian Financial Monthly Income ETF, $6.99, symbol FIE on Toronto (Units outstanding: 45.0 million; Market cap: $314.6 million; www.blackrock.com), is a balanced fund with 16% of its assets in bonds and 16% in preferred shares. The other 68% is in common stocks.

We don’t generally… Read More

Dear Pat: Can I have your views on this ETF: iShares S&P/TSX Canadian Dividend Aristocrats Index Fund ETF? Thank you for your advice.

iShares S&P/TSX Canadian Dividend Aristocrats Index Fund ETF, $24.56, symbol CDZ on Toronto (Units outstanding: 37.6 million; Market cap: $923.5 million; ca.ishares.com), seeks to replicate the performance of the S&P/TSX Canadian Dividend Aristocrats Index. The ETF’s MER is 0.66%, and it yields 3.2%.

The S&P/TSX Canadian… Read More