Vanguard FTSE Cdn High Div Yd.VDY.TOWEAK BUYNov 19, 2025Stock price when the opinion was issued
As of Nov 04, 2026. Market Open.
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.
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.
Buys companies with high dividends. You need to look at each underlying company to see if the dividend is sustainable. Often the dividend yield goes higher because the stock price collapses. That's not a good thing. Telus would be an example of that. Be careful.
Up 20% in one year, great. Overall, getting safer companies with a lot of cashflow. Just watch for companies that may cut their dividend. Great vehicle for people looking for dividend income, especially in a non-registered account.