Opinions
The Panic-Proof Portfolio (Stockchase Research)
iShares Cdn Div Aristocrats ETF
CDZ-T
TOP PICK
Nov 07, 2024
Stock price when the opinion was issued
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Dividend investing is a long term factor strategy and this is one of the granddaddies in the sector. To be classed as Aristocrat, dividends have to have been steady or rising for 5 years in Canada and 25 years in the US holdings. Its fee is a little higher than new products. ZEI-T is perhaps another alternative with a lower fee.
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The ETF focuses on good dividend payers and offers good yield with a strong track record. It strategically covers multiple sectors including financials, utilities, energy and real estate. Unlock Premium - Try 5i Free
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The fund holds companies that have increased their dividends for at least 5 years in a row. They also screen for quality of balance sheet and earnings and holds established large-cap names. Unlock Premium - Try 5i Free
Likes XEI for dividends. Lots of large-cap banks and pipelines.
CDZ has more mid-caps than the large caps that XEI has. Includes names like KEY, CSH.UN, GWO and ARE. More diversification, but more beta. Yield is 3.8%, not bad. Could complement XEI, but you may want to look at US or global dividend strategies for more diversification.
CDZ is a low MER (0.6%) ETF of Canadian dividend aristocrat stocks -- over 90 holdings that have increased their dividends consistently over the past five years. The average PE of the portfolio is 16x earnings. Since inception it has averaged a 7.4% annual return. We recommend setting a stop loss at $31, looking to achieve $44 -- upside potential of 18%. Yield 3.6%