BMO Canadian Dividend ETF (ZDV.TO)

It's a dividend ETF. Don't expect much from it now. It'll track down as interest rates rise. Hold it.

He likes this. XEI-T is similar. It really depends on how much financials you want. XEI has a little less in financials. A Canadian dividend play, so no matter how you slice it, it is going to be 60% financials and energy. He would probably go with XEI instead.

A fairly typical financial and energy ETF. There is nothing wrong with it. You might want to look at the BMO Canadian High Dividend Covered Call ETF (ZWC-T), essentially much the same stock, but has the covered call override. If looking for income, that might be a better choice as it is paying pretty close to 6%.

BMO Canadian High Dividend Covered Call (ZWC-T) or BMO Canadian Dividend (ZDV-T) for a TFSA? This gives you the dividend, but not the covered call premiums on top of it. Interest rates are probably going higher, but doesn’t expect it to happen this year. Wouldn’t be surprised to see a couple of hikes next year. He would be inclined to go with ZWC-T as it gives you 2 sources of income. You could actually own both and be fine.

It is actively managed. It is broadly based. There will be issue with rising interest rates. He does not see anything negative.

It is fine, but he prefers a covered call overlay. ZWC-T is a new covered call strategy to take a look at.

The underlying securities are increasing the dividends on a regular basis. Why is the distribution not increasing, and where does the additional money go? You have to realize that it may not be the same securities over time. Even though the securities in the ETF are increasing their dividends, BMO might be concerned that some of these are yield traps. The actual underlying securities that make up the overall product are changing on an ongoing basis.

A high dividend ETF. They are all down because of pipelines and Energy. If you own this you have to also own the volatility of the marketplace. Be diversified. Own dividends, covered calls, fixed income and understand the markets go up and down. If you can’t handle it, you have to not do this. This is not a good time to sell.

You can’t go too far wrong on dividend funds in general. We are in an environment where interest rates are going to go a little bit higher, which is going to pressure these a little. As long as you are putting a DRIP on it and the dividend keeps getting paid, there is a lot of value in the dividend space right now.

These are Canadian companies that are paying the dividend. You get preferential tax treatment. The companies won’t grow that quickly, but could drop quickly.

Paying about 4% and the MER is about 35 basis points. Has a fair bit of oil in it. No problem with this.

Had held this, but then switched to BMO Low Volatility, Cdn Equity (ZLB-T), which has a lower yield, but much more market performance. However, this one is not a bad investment. Throws off a pretty reasonable yield. The mix of stocks in there is quite good. (See Top Picks.)

You have to remember that one of the areas of the market that is really expensive is the dividend area. If interest rates and inflation start to pick up, you have to be very cognizant of the exposure of the underlying holdings that you have. However, you really can’t go wrong with this. Great core holdings if you are not too picky about what you own.

If we are cautious on the marketplace, dividends are all very, very important. Looking back on any portfolio, you will find the dividend has made up a good portion of the rate of return. This is a really good dividend ETF.

(Market Call Minute.) He like this. The only issue is that this ETF is about 35% exposed to the energy complex. A little higher than what you would want.