Opinions Stan Wong
Vanguard FTSE Cdn High Div Yd.VDY.TOBUYOct 10, 2024
Stan WongStock price when the opinion was issued
As of Nov 04, 2026. Market Open.
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Doesn't like it because it's so heavily weighted to the banks, almost 50%. Just buy banks instead. If the economy softens, the bank sector is pricing in a lot of good news right now. Also, if the wars end, then energy prices will fall. So, there's a high risk among Canadian dividends for these two reasons.
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Premium contentWe again reiterate VDY as a TOP PICK. This low-MER ETF targets higher yield Canadian equities across many sectors, providing good diversification. We continue to recommend a tight stop at $72, looking to achieve $90 -- upside potential of 16%. Yield 2.9%
Premium contentWe reiterate VDY as a TOP PICK. A low-MER ETF targeting higher yield Canadian equities across many sectors. It provides good diversification, while retaining value during market pullbacks. We recommend trailing up the stop (from $69) t0 $72, looking to achieve $88 -- upside potential of 15%. Yield 3.2%
Premium contentWe again reiterate VDY, a one-stop holding for Canadian income generation of high quality companies that has faired well during this recent market uncertainty as a TOP PICK and pays a reasonable dividend. We recommend maintaining the stop at $69, looking to achieve $87 -- upside potential over 16%. Yield 3.5%
Premium contentPremium contentWe again reiterate VDY, a low-MER High Dividend Yield ETF (0.22%) holding 56 Canadian companies, as a TOP PICK. A one-stop holding for Canadian income generation of high quality companies that has faired well during this recent market uncertainty. We recommend maintaining the stop at $63, looking to achieve $82 -- upside potential over 16%. Yield 3.5%
Premium contentWe reiterate VDY, a low-MER ETF (0.22%) holding 56 Canadian dividend paying companies, as a TOP PICK. A one-stop holding for Canadian income generation of high quality companies. We recommend trailing up the stop to $63, looking to achieve $78 -- upside potential of 18%. Yield 3.3%
Better places to be. Dividend growth is more interesting than high dividend payers, especially in an inflationary world. He wants companies that grow their dividends more quickly, even if the dividend is lower to begin with. A rising stream of income offsets a rising cost of living.
Take a look at RDVY.
As long as you have 4-5 years before the home purchase, you can be in an equity strategy. Equities can be volatile.
For Canadian exposure, VDY or XEI makes sense -- high dividends tend to do well in Canada. Lots of options in the US, but he'd stick to equal-weight (not market-weight) ETFs. S&P 500 is still 45% tech and communications, and that's a bit risky at this point. Consider RSP.
For European exposure go for a broad-based approach such as in VIDY.
Premium contentPremium contentVDY is a low-MER ETF (0.22%) which holds 56 100% Canadian dividend paying companies. The portfolio average PE is 15, is under 2x book value, supports a 12% ROE and has average annual earnings growth of 13% over the past five years. It is tax efficient for holding in Canadian non-registered accounts as dividends are eligible for tax credits. A one-stop holding for Canadian income generation. We recommend setting a stop-loss at $54, looking to achieve $73 -- upside potential of 18%. Yield 3.3%
Premium contentVDY holds only Canadian high payers, 57% of them being banks and 25% energy. The banks have been ripping in 2025 with CIBC, for instance, reaching new highs. If your bank outlook is positive for 2026 and you don't see an uptick in mortgage defaults, then VDY looks good. The Canadian prime rate is currently 4.4%, based on the Bank of Canada's overnight of 2.25%, far lower than in the U.S. and is probably staving off a recession in this country (for now).
He likes XEI and VDY. Both pay ~5% yield. VDY is about 45% Canadian banks. XEI is a bit more diversified, with 23% Canadian banks as its top weighting.
For income, he prefers these to a covered call strategy. Though the covered call strategies look very attractive, they tend to underperform the underlying securities, especially in a rising equity market. Great if you need the income, but you'll get a better total return with the other.