iShares Core MSCI CAD Qlty Div ETF (XDIV.TO)

An ETF for Canadian dividends.

See his Top Picks.

Really good run due to Canadian banks, insurance, and energy. Doesn't love Canada now as much for dividend exposure, as it's fully priced. More risk of correction than for the trend to continue.

On the S&P he'd begin nibbling around 6500-6600, which is the next support range.

Fairly concentrated portfolio. OK, but he prefers a broader approach. This one is ~50% financials. He uses XDG instead.

Wonderful core holding. MER of 11 bps. Screens not for the highest-dividend payers, but the ones that they know will make their dividend payments and grow them.

Slightly lower yield, but focuses on the quality of the dividend. Analyzes cashflow, debt, ability to grow dividends. Give up some income today in the hopes of more dividend growth later. Nice complement to VDY.

ETFs that focus on the dividend growers will concentrate on companies with really strong fundamentals such as ROE, free cashflow, and long-term history of raising dividends during ups as well as downs. The high payers will probably look at market capitalization and what's paying the highest dividend. Less concerned about quality. 

This question precludes ETFs with covered call writing, as those are capital gains distributions rather than dividends.

VDY tracks performance of Canadian companies with high dividends. MER is about 0.22, yield is ~4-5%. Doesn't prioritize dividend growth.

Conversely, XDIV looks at dividend growers and their dividend sustainability and growth metrics. Concerned with growth of future dividends. MER is 0.10. Dividend yield is lower, about 4%.

Low-fee ETF that tracks the MSCI index. Is defensive, using a core strategy, holding quality dividend stocks. Canada is going well, and he's bullish Canada. This will benefit from Canadian outperformance.

A high-quality index, holding mature companies that are consistent steady-eddy payers in Canada (energy and insurance companies). Good but don't make this the core of your portfolio. Also, is this taxable or not? (He has to research that.)

Basket of about 21 Canadian names; ENB is the top weighting, followed by TD, SU, and RY. Insurance, pipelines, banks, etc. Insurance adds the factor of quality. Total return about 10.7% over 5 years. Makes sense. Yield is ~4.5%.

No issues with it, but consider that the US is on stronger footing right now.

Great. Holds quality stocks, avoiding dividend traps.

Covered call gives extra income, but reduces capital gains. If bullish - would recommend an equity ETF without dividends. This option is good for dividend investors looking for income. Overall, a good product - just a question of investor preference. 

XDIV looks solid with a low MER and distribution yield near 5%. It is a smaller ETF with under $1B in assets under management but it did outperform some of the names on the list. The concentrated holdings likely allow XDIV to offer the lower MER that it provides but that can be riskier. XDIV does aim to invest in low risk companies however so the concentration risk is somewhat offset. We think XDIV is a decent income option. 
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VDY vs XEI ETF? VDY and XEI is very similar and their prices track closely. VDY tends to hold higher financial sector exposure, where yields are generally higher. Whereas XEI holds the highest yield payers on the composite Index. He also likes XDIV which has the lowest MER (0.11%). It holds "quality" holdings, using an algorithm to pick higher ROE, lower levered companies with earnings stability.