John DeGoeyVanguard FTSE Cdn High Div Yd.VDY.TOCOMMENTDec 18, 2014

Excellent product with safe dividend. Good for long term investors. Good management team with low MER. 

Likes some of these solid, large-cap dividend names. Interest rate environment's on pause, likely to fall, beneficial for dividend-type stocks. Excellent name to own, nothing wrong with it. 22 bps. He owns XEI, similar strategy. 

Holds banks as the top weighting, which he has no problem with, as many of the banks are undervalued now. Likes this approach. Note that 46% of the portfolio is made up of banks. Yield is 5.2%.

VCN is an all cap with about 175 stocks. VDY focuses on dividend payers, so it has banks and oil and the like. 

The choice is do you want basic growth or do you want income? VDY for income. VCN for more growth and better diversification.

He likes XHU-T, VDY-T and XEI-T, which he owns. All include financials and pipelines.

VDY vs. VRE when buying dips We just had a dip on Friday and you have to pounce on them. It's hard. You need to find a stock that trades in a channel, then buy when it hits the bottom of that channel. The TSX is weighted in the VDY. He prefers VDY given the underperformance of Canadian banks in VRE.

VDY vs XEI ETF? VDY and XEI is very similar and their prices track closely. VDY tends to hold higher financial sector exposure, where yields are generally higher. Whereas XEI holds the highest yield payers on the composite Index. He also likes XDIV which has the lowest MER (0.11%). It holds "quality" holdings, using an algorithm to pick higher ROE, lower levered companies with earnings stability.

(A Top Pick May 2/16. Up 17%.) Has used this as an income surrogate where some people do not want to sell their principal and just want dividend income. This is ultimately Canadian equities and are going to need to have some volatility. Has significantly lightened his position in this.

(A Top Pick May 2/16. Up 19%.) A broadly diversified way of getting Canadian dividends. He doesn’t believe you should use dividends as an income investment, but this is for those people who are looking for dividends.

(A Top Pick Feb 26/16. Up 35.01%.) This company’s costs are low. A situation where he thought that for people who are relatively conservative, it is a good ETF that has gone up consistently and steadily in the past year. Dividend paying stocks are really a good way to screen for value. You are basically getting a value play on the Canadian large cap stock market. Still a buy.