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Opinions John Hood
BMO Europe High Dividend Covered Call Hedged to CAD ETZWE.TOBUYFeb 16, 2016
Stock price when the opinion was issued
As of Jun 19, 2026. Market Open.
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Likes exposure to Europe, of which many Canadians have minimal exposure. ZWE looks at the dividend yields of its holdings. Plus, it does some covered writing, which gives you income along the way in tradeoff for upside. Attractive yield, but consider also owning some European stocks on their own. Nice piece of diversification for your portfolio, good bit of income.
In general, Europe is good value compared to US or NA markets. Lower PE and book value, higher dividend. This one has high dividend stocks, with covered call overlay. Up 11% YTD. Makes sense for cashflow. But ZWP, holding underlying securities, gives better total return. Yield is around 7.5%.
A very good way to play Europe. You’re getting a dividend yield of around 8% and the capital gains on the sale of the Covered Calls. The dividend, of course, is going to be treated as income, because it is not Canadian.