TSE:HDIV

16.64
0.21 (1.28%) 1d
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Investor Insights

This summary was created by AI, based on 3 opinions in the last 12 months.

The Hamilton Enhanced Multi-Sector Covered Call ETF (HDIV-T) is seen as a decent investment option, particularly for RESP accounts targeting students and long-term growth. While it aims to provide enhanced income through leveraged strategies and covered calls, the sustainability of its dividends remains contingent on the performance of the underlying securities and the volatility of option prices. Experts acknowledge that although the current income level appears attractive, it is not guaranteed and can fluctuate based on market conditions. The ETF is noted for its exposure to a diversified range of Canadian and global index stocks, but its higher management expense ratio (MER) and leveraged nature introduce some risk, making it suitable for only a small segment of an investor's portfolio. Investors must understand the mechanism behind the income generation before committing capital, as relying solely on it without oversight may lead to unexpected outcomes.

Consensus
OK
Valuation
Fair Value
WEAK BUY

This would be for a RESP account. He likes a multi-sector ETF. Enhanced means leveraged. It's an OK buy for students and the long term.

WEAK BUY
Dividend sustainable?

You get the dividend from the underlying securities, that's for sure. If underlying companies cut dividends, then the dividend will be down. 

But the enhancement from the options strategy comes from the price of volatility. There's nothing more volatile than the price of volatility. Extra income generated is variable. Right now, it's pretty attractive. But he'd be lying if he said that there's a strategy where you can get 10-11% forever and ever without change.

Right now, probably sustainable. Not a strategy to just buy, without understanding the mechanism of it, and forget about it. Nothing wrong with it, but the income generated is variable, with the biggest swing factor being the price of volatility. If volatility goes down, the fund can't get as much for the call options.

He uses the BMO versions of these because of the funds he runs for BMO.

PARTIAL BUY

Covered call option that is food for income oriented investors. MER ratio a little high. Good exposure to Canadian world of index stocks. Leverages product that can present risk. Good on upside, but can be hazardous on downside. Good for small portion of portfolio. 

DON'T BUY

He avoids anything with leverage for his older clients.

PARTIAL BUY
It uses some leverage and owns covered call writing ETF's of other providers so is diversified across covered call writers. Since it adds extra value it is worth the higher fees, but the yield cannot be entirely counted on. It is OK as a part of your portfolio.
DON'T BUY
HDIV vs. HDIF HDIV will give you back part of the yield in the way of return of capital. The MER is a little high at 2.09%. So, will you get that much excess return. HDIF is shorter in its time frame. He can't decide which is better.
COMMENT
Not sure on his preference between the two. Part of HDIV's yield is ROC through covered calls. Management expense rate is a little high at 2.09. HDIF has equal weight gold, utilities, brand leaders, health leaders, etc. They are ETF's for income.
DON'T BUY
Problem is that Hamilton uses about 25% leverage. As a matter of principle, his contracts state that he doesn't use leverage of any kind. So he can't use Hamilton. But that's not an issue for everyone. The other issue is that Hamilton uses other ETFs within their ETFs, so you're paying double the fees of around 150 bps, and that's way too high for an ETF.
COMMENT
Quality operators for investment strategies. No issues with the ETF. This is perfect for adding diversification to your portfolio.
BUY
In option strategy, it is all about the path that is taken. If it is a sharp decline, then covered calls will give you no protection. Hard to say without knowing which path it takes. Likes HDIV with its prudent use of leverage.
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Hamilton Enhanced Multi-Sector Covered Call ETF (HDIV-T) Rating

Ranking : 4 out of 5

Star iconStar iconStar iconStar iconStar empty icon

Bullish - Buy Signals / Votes : 3

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 3

Stockchase rating for Hamilton Enhanced Multi-Sector Covered Call ETF is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Hamilton Enhanced Multi-Sector Covered Call ETF (HDIV-T) Frequently Asked Questions

What is Hamilton Enhanced Multi-Sector Covered Call ETF stock symbol?

Hamilton Enhanced Multi-Sector Covered Call ETF is a Canadian stock, trading under the symbol HDIV-T on the Toronto Stock Exchange (HDIV-CT). It is usually referred to as TSX:HDIV or HDIV-T

Is Hamilton Enhanced Multi-Sector Covered Call ETF a buy or a sell?

In the last year, 3 stock analysts published opinions about HDIV-T. 3 analysts recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Hamilton Enhanced Multi-Sector Covered Call ETF .

Is Hamilton Enhanced Multi-Sector Covered Call ETF a good investment or a top pick?

Hamilton Enhanced Multi-Sector Covered Call ETF was never recommended as a Top Pick on Stockchase. Read the latest stock experts ratings for Hamilton Enhanced Multi-Sector Covered Call ETF .

Why is Hamilton Enhanced Multi-Sector Covered Call ETF stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Hamilton Enhanced Multi-Sector Covered Call ETF worth watching?

3 stock analysts on Stockchase covered Hamilton Enhanced Multi-Sector Covered Call ETF In the last year. It is a trending stock that is worth watching.

What is Hamilton Enhanced Multi-Sector Covered Call ETF stock price?

On 2025-04-24, Hamilton Enhanced Multi-Sector Covered Call ETF (HDIV-T) stock closed at a price of $16.64.