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