Opinions
Larry Berman CFA, CMT, CTA
BMO Canadian Dividend ETF
ZDV-T
WAIT
Sep 04, 2020
Stock price when the opinion was issued
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When you go for high-dividend payers in Canada you get the banks, insurance companies, pipelines, and some of the energy names. Yield will be a bit over 4%. A nice way to play.
Vanguard, iShares, and BMO all have offerings, but they all do it slightly differently. BMO has a covered call version, ZWC. There's ZDV, XDV, VDY. Take a look at them all and see what you like. All have different weights to the components. They're all equally good.
Basket of high-dividend Canadian names. Both about 24-25% cumulative returns over the last 3 years.
XEI more diversified with 30% financials plus 30% in energy. Slightly better MER of 22 bps. Yield is ~5.5%.
ZDV is 38% financials and 20% energy, so might make sense if you really love financials. MER is 39 bps. Yield is 3.8%.
He uses ZWC to be defensive when he's close to the high point to have more buffer for when the markets go sideways or down. From a low point, you want ZDV to get dividends without covered call. He would wait for a pullback before putting new money in.