If you’re looking for a good mix of Canadian dividend stocks, one exchange-traded fund (ETF) you’ll want to consider today is the BMO Canadian Dividend ETF (TSX:ZDV). The fund has a yield of 3.2%, which is considerably higher than the S&P 500 average, which is just 1.1%. It has a management expense ratio of 0.39%, which is modest in relation to other Canadian ETFs.
This fund has 55 holdings in its portfolio and focuses on Canadian dividend stocks that offer a mix of safety and dividend growth. It looks at a stock’s three-year dividend growth rate, its yield, and also the payout ratio, to determine whether it should belong in its portfolio. The ETF aims to give investors a good mix of high dividends and sustainable payouts.
Many top Canadian dividend stocks are in the financial sector, which is what makes up the lion’s share of this ETF’s holdings at 42%. Energy and materials make up another 18% and 10%, respectively.
The top spot in the ETF belongs to Bank of Nova Scotia which accounts for about 5.7% of its overall weight, followed by Toronto-Dominion Bank at 5.4%, and Royal Bank of Canada at 5.2%. With some of the safest bank stocks in North America make up a big chunk of its top holdings, there’s a lot of safety with this ETF, and it can make for a solid income-investment to hang on to for the long haul.
Year to date, the ETF has risen by 19% and in five years it’s up 74%, and that’s without even factoring in the dividend.
