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BMO Europe High Dividend Covered Call Hedged to CAD ETZWE.TOBUYFeb 07, 2019Stock price when the opinion was issued
As of Jun 19, 2026. Market Open.
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%.
Is it good for income? - Some of the most famous consumer brand names. Dividend is quite high and safe. All these big companies are selling to emerging markets more than Europe. That is why he likes it.