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Opinions Tyler Mordy
BMO Europe High Dividend Covered Call Hedged to CAD ETZWE.TOCOMMENTSep 20, 2016
Tyler MordyStock 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%.
European equities are fraught with political risks, but looking at European equities, particularly with a yield versus government bond yields, there is a radical difference. At a certain point, there is going to be a rotation back into equities, and these institutions will have to take on more risks to meet their liabilities. He likes this ETF and it is a good hold. Dividend yield of over 7%.