There are many dividend ETFs available in Canada and it can be difficult to know which ones to buy. With a little research, you can find the best Canadian dividend ETFs to invest in. In this article, we’ll discuss a few of the most popular Canadian stocks. This will help you determine which ETFs to choose for your portfolio. And as always, remember that these are only suggestions and not recommendations. You should do your own research before making a decision
Listed below are the best options to consider: BMO Canadian High Dividend ETF (XDIV). This fund is composed of 30 Canadian companies that pay high dividends. These companies have stable balance sheets and have a proven track record of increasing their dividends.
1) The BMO Canadian Dividend ETF has the lowest yield, but it has plenty of other benefits. It has low management fees and is professionally managed. Its MER is only 0.39%. It also has a broad diversification and considers both three-year dividend growth rates and yield. Its focus is on the finance sector, including BCE Inc., the Royal Bank of Canada, and the Toronto-Dominion Bank.
2) The XEI Canadian Dividend ETF – is geared primarily towards high-yield dividend-paying stocks. It is professionally managed and has a low MER (annual management fee) of 0.39%. Its main focus is the finance sector, and includes such companies as Toronto-Dominion Bank, the Bank of Nova Scotia, and BCE Inc. These dividend ETFs have the potential to deliver steady, high-yield returns.
3) Vanguard is another popular Canadian fund – It has the largest volume and has a very low MER of 0.22%, which is a major plus. The iShares Canadian Select Dividend Index ETF is a BlackRock fund that aims to replicate the performance of the Dow Jones Canada Select Dividend Index. The ETF provides a high level of financial exposure and pays monthly dividend income. While it has a relatively high MER, it is a great choice for income seekers who are looking for dividend growth.
4) The S&P TSX Canadian High Dividend ETF – is the best dividend ETF in Canada. Its portfolio contains various large TSX companies that pay dividends. This index also holds financials and industrials. With a low expense ratio, it offers investors the opportunity to diversify their investments. Its goal is to achieve total returns by buying stocks with strong fundamentals. For example, if you’re looking for a high yielding stock, it might be worthwhile to add it to your investment portfolio.
The best dividend ETFs in Canada have low MERs and high diversification. XEI is a good choice if you’re looking to invest in Canadian dividend paying stocks. It has over $600 million in assets and is managed by Vanguard. Its target index is the S&P/TSX Composite High Dividend Index. Moreover, it has a low MER, which means that it is a good option for Canadian investors.
Aside from its low MER of 0.39%, XEI also pays monthly dividends and offers a 5.25% annual yield. However, dividend ETFs are not a suitable choice for everyone. Many investors find that they can’t invest in one of these funds because of the high fees. Hence, investors must make sure that they are aware of these risks before investing in the ETFs.
BMO Canadian High Dividend ETF has always been a great choice for Canadian investors, It has low MER, and is managed by the BMO Global Asset, which is a trusted company. XEI offers a 4.1% dividend yield and a price to earnings ratio of 16.8. It is the best Canadian dividend ETF to invest in. But if you’re looking for an ETF with low MER, the Vanguard entry VDY is a good option.
Both Canadian dividend ETFs are concentrated in energy and financial stocks. For example, the ZDV and XEI both contain Enbridge, while XEI has a higher MER of 0.2%. They also have the same dividend yield and price to earnings ratio of 16.8%. It has a history of excellent performance and is the best Canadian dividend ETF. This is a great investment choice.
The best dividend ETFs in Canada have different strategies. The XEI and ZDV have similar strategies, but they offer a more diverse range of stocks. Both Canadian dividend ETFs have good and bad attributes. XEI is the better choice if you want to invest in the dividends only. The XDV has lower MER than VDY, but the Vanguard offers more diversification.