PARTIAL BUY

Hold the big Canadian banks, Enbridge, BCE and Manulife. But the option premiums on these stocks is small.  So, you're selling some of the upside potential, but not getting downside potential. But this pays you high-paying dividend stocks at a 0.72% MER.

E.T.F.'s
DON'T BUY
ZWC vs. XEI Basket of high-dividend paying, large cap names in Canada, with covered call overlay. Pipelines, banks, telecom. XEI has outperformed ZWC, even though ZWC has a higher yield. What happens is that you get called out of ZWC with the covered calls, so the capital appreciation is weaker. Underperformed the TSX. Higher MER of 72 bps. If you think market's moving forward, prefers XEI unless you need the extra income from covered calls. Already tax-efficient, so efficiencies would be lost in a registered account. Yield is around 6.8%.
E.T.F.'s
BUY
Buy for TFSA? Likes it. It's a covered call ETF covering all the right sectors like utilities and energy. ZWC sells calls on only half of it, so you experience some growth as well. Likes covered call ETFs in general.
E.T.F.'s
COMMENT
In a TFSA? Basket of high dividend payers. Overlays some options to attract more income. Performed decently YTD, up 1%. If you're bullish on underlying securities, you're better off holding them than the covered call. Covered call works best in flat or declining markets. Already pretty tax efficient. He owns XEI instead. Yield is about 6.6%.
E.T.F.'s
BUY
Good to reduce volatility. A covered call on a dividend payer layers in defence upon defence. ZWC will provide a steady income stream on the way up, yet limited vol on the way down.
E.T.F.'s
Unspecified
Has held shares in the past, but doesn't own any right now. Will leave it to investors to determine if product is right for them.
E.T.F.'s
BUY
Tilted to value, preferable now with rising rates. About 37% financials, 15% energy, 13% communications. 72 bps expense ratio. Likes the strategy. Makes sense for the extra income. Yields about 6.2%.
E.T.F.'s
BUY
A market cap weighted high dividend covered call strategy. It covers the top 50 stocks that are good dividend players in the TSX.
E.T.F.'s
COMMENT
Is the 6.5% dividend too good to be true? Is there a return of capital portion in the yield? He doesn't believe so. On all BMO covered call ETFs you're adding 2-2.5% to the dividend to total 6.5%. No, there are no return on capital issues.
E.T.F.'s
COMMENT
A covered call on the entire Canadian market. He tends to use covered calls on sectors. ZWC will give you an enhanced income stream, but its growth is limited.
E.T.F.'s
COMMENT

ZPAY is his favourite way to play the US market. European ZWE is for Europe and if you need Canadian exposure. ZPAY is designed to yield around 6%. Will have some volatility but will have half of what the S&P will see.

E.T.F.'s
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.
E.T.F.'s
DON'T BUY

Covered calls give you a boost in the distribution. Not a bad strategy when market is flat or slightly negative. If market continues to go higher, you're better off owning the underlying securities. Consider XEI instead, no covered call. Owns the securities outright, and so you won't get as high a dividend, but you might get more performance. In last 6 months, XEI returned17-18%, whereas ZWC returned 10.68%.

E.T.F.'s
PARTIAL BUY

Compare to ZDB-T. The covered writing ETF including dividends is under-performing the simple buy and hold strategy. During a recovery, the covered written stocks are capped on the upside. You get a slim amount of option premium because the premiums are priced on the volatility of the underlying equity. Don't let your whole portfolio be covered written. Be careful.

E.T.F.'s
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.

E.T.F.'s
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BMO CDN HIGH DIV COVERED CALL ETF(ZWC-T) Rating

Ranking : 3 out of 5

Bullish - Buy Signals / Votes : 2

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 1

Total Signals / Votes : 3

Stockchase rating for BMO CDN HIGH DIV COVERED CALL 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 CDN HIGH DIV COVERED CALL ETF(ZWC-T) Frequently Asked Questions

What is BMO CDN HIGH DIV COVERED CALL ETF stock symbol?

BMO CDN HIGH DIV COVERED CALL ETF is a Canadian stock, trading under the symbol ZWC-T on the Toronto Stock Exchange (ZWC-CT). It is usually referred to as TSX:ZWC or ZWC-T

Is BMO CDN HIGH DIV COVERED CALL ETF a buy or a sell?

In the last year, 3 stock analysts published opinions about ZWC-T. 2 analysts recommended to BUY the stock. 1 analyst recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for BMO CDN HIGH DIV COVERED CALL ETF.

Is BMO CDN HIGH DIV COVERED CALL ETF a good investment or a top pick?

BMO CDN HIGH DIV COVERED CALL ETF was never recommended as a Top Pick on Stockchase. Read the latest stock experts ratings for BMO CDN HIGH DIV COVERED CALL ETF.

Why is BMO CDN HIGH DIV COVERED CALL 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 CDN HIGH DIV COVERED CALL ETF worth watching?

3 stock analysts on Stockchase covered BMO CDN HIGH DIV COVERED CALL ETF In the last year. It is a trending stock that is worth watching.

What is BMO CDN HIGH DIV COVERED CALL ETF stock price?

On 2023-12-11, BMO CDN HIGH DIV COVERED CALL ETF (ZWC-T) stock closed at a price of $16.68.