A Yield to Caution

CANOE EIT INCOME FUND $11.92 (Toronto symbol EIT.UN; Units o/s: 124.7 million; Market cap: $1.5 billion; Divd. yield: 10.1%; www.canoefinancial.com) is a closed-end fund that invests in a portfolio of dividend paying stocks. Canadian stocks account for 59.3% of its holdings, followed by the U.S…. Read More

Pass on this ETF

BMO Canadian High Dividend Covered Call ETF $17.80 (Toronto symbol ZWC) holds mostly high-quality Canadian stocks. The ETF, launched in February 2017, holds $985.2 million of assets, and has a MER of 0.72%. The fund has 75 stocks. Current top holdings include TD Bank, Royal… Read More

A Yield to Caution: Dividend 15 Split Corp.

DIVIDEND 15 SPLIT CORP. $8.06 (Toronto symbol DFN; Shares outstanding: 65.5 million; Market cap: $527.9 million; Dividend yield: 14.9%; www.quadravest.com) holds shares of 15 big Canadian companies.
These include BCE, Bank of Nova Scotia, Thomson Reuters, TC Energy, Sun Life Financial, Enbridge and Telus. It can also invest… Read More

Q: I’d appreciate your comments on Canoe EIT. Its big dividend is attractive, but that often signals unidentified risk, I think. Thanks.

A: Canoe EIT Income Fund, $10.97, symbol EIT.UN on Toronto (Units outstanding: 123.3 million; Market cap: $1.4 billion; www.canoefinancial.com), changed its name from EnerVest Diversified Income Trust in November 2013. The stock symbol is unchanged.

Canoe EIT is a closed-end fund that invests in a portfolio… Read More

Pass on this ETF: BMO COVERED CALL UTILITIES ETF

BMO COVERED CALL UTILITIES ETF $12.37 (Toronto symbol ZWU) invests in Canadian and U.S. utility, pipeline, and telecommunications companies with what it sees as steady revenue streams; it also sells call options to enhance the yield on the portfolio.
The ETF, launched in October 2010, currently holds $1.0… Read More

Q: Pat, the bulk of my investments are in North America. I am looking at Europe and thought that an ETF holding solid blue chips would be best for me. As I also require income, I came across ZWP, which pays a very good dividend and holds high-quality companies. Do you think that this would be a good ETF at this time? Thanks.

A: BMO Europe High Dividend Covered Call ETF, $16.40, symbol ZWP on Toronto (Units outstanding: 63.6 million; Market cap: $1.0 billion; www.bmo.com/gam), invests in a dividend-focused portfolio of European stocks.
The fund started up in March 2018. Its MER is a relatively high 0.71%.
Its top holdings… Read More