
TSE:XEI
This summary was created by AI, based on 9 opinions in the last 12 months.
The iSHARES SP TSX COMP HIGH DIV INDEX ETF (XEI) is considered a strong option for those seeking high monthly dividends and potential capital appreciation, especially within a registered account like an RRSP. Experts praise XEI's focus on high-dividend payers while acknowledging its 25% exposure to Canadian banks, which some believe offers a reliable income stream. Compared to other ETFs, XEI has shown better performance, lower fees, and a more favorable diversification approach. With a yield of around 3.5-4.5%, analysts suggest that it may be a strategic addition, particularly given the potential benefits from rising oil prices and national projects in Canada. However, individuals heavily invested in certain sectors should assess their current portfolio before making an investment decision.
XEI pays a 4.89% dividend yield, trades at an 11x PE and a 0.91 beta. Volumes average 73,300 so daily trading can be a little choppy, but a dealbreaker. XEI charges only a 0.22% MER. If you’re skittish the banks and are an ESG investor, avoid XEI. All others, give this a look. Read Canadian dividend payers for our full analysis.
Adds cyclicals like financials and energy names to give you a bit more growth. Yield is 4.8%.