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Stockchase Insights BMO Canadian Dividend ETF ZDV-T BUY ON WEAKNESS Jun 09, 2025

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

ZDV is a large, liquid, solid dividend fund with a 3.58% yield and 5-year annualized return of 14.01%. We would be fine buying at $23 or better but with a diversified fund we would not get too stressed about pricing over a 5-year term. With the fund owning 95% Canadian stocks, for most investor a non-reg account would be best, so as to get the benefit of the dividend tax credit.
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BUY

Dividend ETFs with a monthly dividend, covered calls and a high yield. They give you great exposure to great companies.

WEAK BUY

It's fine. They rank Canadian stocks according to dividend growth and their payout ratio. It pays a 4.5% dividend and a low MER. It's more volatile than most expect. He's lukewarm on it.

WAIT

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.

COMMENT

ZWC would be his favourite so he can be more defensive. If you are bullish, ZDV would make sense. Markets have some squeeze potential and there is liquidity coming to markets from stimulus. He does not see materially higher highs than where we are up until early next year.

COMMENT

The caller requested suggestions for higher dividend ETF. There's a number of ways to play it. Go to an ETF website to see which ETF fits your profile. Covered calls provide higher dividends.

BUY

Allan Tong’s Discover Picks By sector, ZDV holds nearly 40% banks, 13% utilities, 13% energy and 11.8% communication services. ZDV pays a 3.74% dividend and charges a reasonable 0.39% MER. In the past 12 months, ZDV has gained 24% which is 3.5% lower than Enbridge, but 1.5% better than TD. ZDV's daily volumes average 104,000 while the beta stands at a safe 0.8. This ETF's holdings trade at a PE of 15.14x. Read 3 Canadian Dividend Stocks for our full analysis.

BUY

A fine Canadian dividend ETF, offering diversified Canadian bank stocks and low volatility.

BUY

High-dividend ETF on the TSX.

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.

DON'T BUY

ZDV vs. XEI

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%.

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