Buy, Sell or Hold: BMO Covered Call Utilities ETF (ZWU-T)

TSE:ZWU

12.78

0.07 (0.54%) 1d

Showing 1 to 15 of 173 entries

BUY on WEAKNESS

Trimmed it around $13. Loves it for the yield principles and stability over time. It is sensitive to interest rates and energy. These two are in play right now. Would trade around with it. If it dips, would add to it. At $13, it is richly valued. Need to know if you want to own it for distributions or to trade.

E.T.F.'s

DON'T BUY

it's underperformed the bank ETF since inception. So, the covered call isn't adding value, but rather generating fees.

E.T.F.'s

DON'T BUY

FSZ vs. ZWU Both pay around an 8% dividend, which at that level it's probably not pure dividend you're getting on a long-term basis. About 6.5% is the limit for a sustainable dividend level. Plus, you get worries about the future of hydrocarbon demand. He himself doesn't see this, but it's a scenario to consider. Both FSZ and ZWU, you're getting some of your capital back to fund their dividends--this is not sustainable. ZWU has underperformed the equal-weight bank ETF since inception. So, the covered call portion isn't adding value, but is an additional-fee generator. He's rather buy the underlying stocks. Fiera has done a ton of purchases, not all of them cheap or good. Their wealth management business has been positive in the last 18 months, but you risk a market correction and a major re-pricing of assets, more so than any Canadian bank.

E.T.F.'s

BUY

ZWU vs. ZWE Includes telecoms, pipelines, and electric companies as well as utilities. Good for conservative investor, who wants a nice yield of tax-efficient income. Very good yield about 7.5%. Longer term, you might have more growth in ZWE if you can look beyond the next 6-12 months.

E.T.F.'s

COMMENT

Caller had a question on tax treatment. About 30% of the dividend stream comes from US corporations. This would see withholding tax. The capital gains coming from the covered calls are cap gains, and the dividends from Canadian companies will see beneficial tax treatment and the US dividend will be taxed.

E.T.F.'s

DON'T BUY

For the long term The only problem is that utility stocks rely on government contracts, so are vulnerable to an increase in interest rates; they can't adjust quickly. So, if rates rise, utilities will decline even though the dividends now look attractive.

E.T.F.'s

BUY

He likes ZWU, a basket of telecoms and pipelines, where you get the high yield plus the covered call option premiums.

E.T.F.'s

BUY

Caller asked for an infrastructure ETF. Gives you exposure to aspects of infrastructures like pipelines, utilities, and telcos. Aspects of infrastructures are there. Lots of different ways to look at infrastructure. PAVE gives you access to roads and infrastructure.

E.T.F.'s

BUY

A good ETF to get exposure to pipelines, telecos and other high dividend paying utilities. There is a covered call enhancements on top of it. Pays a 6-7% on average, which is great for dividend seekers.

E.T.F.'s

COMMENT

Hard to say which one would perform the best in a correction. ZZZD has a very defensive posture with half of the portfolio hedged to downside risk. ZWU and ZPAY are in ZZZD. Would look to be defensive in the next few months.

E.T.F.'s

COMMENT

There is dividend from the underlying companies and there is also yield from covered calls. The stock price adjusts on the ex-dividend experience.

E.T.F.'s

COMMENT

For yield seekers, ZWU is a great domestic play. Yield is currently around 7%. It is interest rate sensitive and to energy. If you want European dividend plays, he would recommend ZWE and ZWP.

E.T.F.'s

COMMENT

Likes Europe better. When not investing in Canada, you don't get the dividend tax credit. In a taxable account, would focus on ZWU since it has favourable tax treatment. In a registered account, he has been allocating to international companies since dividend is better.

E.T.F.'s

BUY

Utilities are capital intensive and has debt on their balance sheets. If inflation is going to push interest rates up, it would hurt margins, off-set by their regulatory ability to increase yield and income. You get some inflation protection. A great dividend player.

E.T.F.'s

BUY

For income in retirement account. Would prefer ZWU to HHL. If markets correct over the next few quarters, there will be more correction in HHL. Likes both and are both buys in pull backs.

E.T.F.'s

Showing 1 to 15 of 173 entries

BMO Covered Call Utilities ETF(ZWU-T) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 10

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 3

Total Signals / Votes : 13

Stockchase rating for BMO Covered Call Utilities ETF is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

BMO Covered Call Utilities ETF(ZWU-T) Frequently Asked Questions

What is BMO Covered Call Utilities ETF stock symbol?

BMO Covered Call Utilities ETF is a Canadian stock, trading under the symbol ZWU-T on the Toronto Stock Exchange (ZWU-CT). It is usually referred to as TSX:ZWU or ZWU-T

Is BMO Covered Call Utilities ETF a buy or a sell?

In the last year, 13 stock analysts published opinions about ZWU-T. 10 analysts recommended to BUY the stock. 3 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for BMO Covered Call Utilities ETF.

Is BMO Covered Call Utilities ETF a good investment or a top pick?

BMO Covered Call Utilities ETF was recommended as a Top Pick by on . Read the latest stock experts ratings for BMO Covered Call Utilities ETF.

Why is BMO Covered Call Utilities ETF stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is BMO Covered Call Utilities ETF worth watching?

13 stock analysts on Stockchase covered BMO Covered Call Utilities ETF In the last year. It is a trending stock that is worth watching.

What is BMO Covered Call Utilities ETF stock price?

On 2022-01-24, BMO Covered Call Utilities ETF (ZWU-T) stock closed at a price of $12.78.

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