Stockchase Opinions

Stan Wong iSHARES SP TSX COMP HIGH DIV INDEX ETF XEI-T BUY Apr 10, 2025

VDY vs. XEI

Both are great examples of an ETF with Canadian names. Between 4.9-5.3% dividend yield. VDY has more banking exposure, so it depends on how much concentration you want in the Canadian banks. 

$25.100

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BUY

Generally likes the dividend payers, depending on the investor. Good if you're looking for income and steady growth. Be aware that a lot of the weighting is bunched around the Canadian banks, with energy companies following. Steady performance, value play. Dividend is fine and growth will be there.

WEAK BUY

Prioritizes dividend yield. MER is 22 bps. Yield is decent in the 4%-range. Nothing wrong with this one, though you may want to tilt away from energy right now. Energy exposure is higher than XDV. If Trump gets his way, there will be more oil and gas and the price will struggle. You'll want to be in an area that makes its money on volume, not on price.

BUY

Big names in banks, energy, utilities. Very nice dividend yield, about 4% and change (going forward, it's ~6% after recent drop in the market). Nice, balanced way to get good dividend yield. Not high growth, but more reliable growth in the 7-8% EPS growth range.

BUY

He likes high-dividend ETFs. Good for those seeking income or to hold in a RRIF. This mixes big banks and insurers, and is less volatile than the market. You can buy and forget and collects the dividend. Good exposure to Canada, whose performance surprises him this year.

BUY

Less exposed to financials than VDY, so you get more diversification.

BUY

Very good. Is at highs, mirroring the market, though we could face a pullback given Trump's tariff policies. We'll see. Maybe investors are getting jubilant.

BUY

Looks good, holding materials stocks and many dividend payers.

BUY

Looks good, holding materials stocks and many dividend payers.

BUY

Basket of Canadian higher-dividend-paying stocks, largest weighting is banks at 24%. Oil, gas, and pipelines make up ~30%. Names such as TD, RY, and ENB. Likes and owns. Getting these dividends in a stable or falling interest rate environment makes sense. 

When you're buying a dividend strategy, you don't necessarily need to wait for a better entry point. Not overbought at 52 RSI. If you wait, then you're missing out on dividends for the time you're waiting. That said, September is usually a weaker month for markets (6/10 years for the S&P have been negative). Yield is ~4.6%.