Opinions The Panic-Proof Portfolio (Stockchase Research)
Vanguard FTSE Cdn High Div Yd.VDY.TOTOP PICKDec 18, 2025
Stock price when the opinion was issued
As of Jun 01, 2026. Market Open.
You might be interested:
;fill-opacity:1;'/%3e%3cpath%20d='M31%2018.6001V30H8V18.6001L14.1334%2022.4334L19.4999%2014L24.8669%2022.4334L31%2018.6001Z'%20fill='%23EE5432'%20style='fill:%23EE5432;fill:color(display-p3%200.9340%200.3310%200.1956);fill-opacity:1;'/%3e%3c/svg%3e){kind=small}
Premium content
Premium 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 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).
Resources required to build those data centres and energy sources are booming. That's why Canada is doing so well. Broad diversification and a good dividend yield. Canadian dividends are eligible for the tax credit, so it's more tax-efficient if outside a registered account.
Sees a broadening of the market rally after a very strong few days. Rotation out of tech into other names.
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.
Basket of high-dividend-paying stocks. Very heavy in Canadian banks, about 46%. Depending on your outlook for the banks, you need to decide if this holding makes sense for you. Choose this one if you're looking for yield. Yield is about 3.3%.
XIC will be much more diversified, as its focus is not juicy dividends. Dividend is lower. Banks make up only 21%. Yield is ~2.3%.
VDY 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%