iShares Cdn Dividend ETF (XDV.TO)

Suggests getting individual stocks instead of a dividend stock, because if one sector gets hit then the whole portfolio is down.

A stronger performing sector in the mutual fund area is dividend growth funds. History of the S&P 500 or TSE 60, shows that between 56% and 63% has been generated by the reinvestment of dividends. This iUnit is based on blue-chip Canadian stocks with a history of dividends and an increase in them.

Offers diversification in dividend paying stocks. One of the great things about E.T.F.'s is that MER's are incredibly low, so you're getting an index strategy and diversification and you are only paying a low amount. Also gives you liquidity.