canadian dividend
BMO S&P/TSX Laddered Preferred Share Index ETF holds floating-rate preferred shares that fluctuate with changes in interest rates. Our view.
You may have heard of blue chip stocks, but what are blue chip companies, and why are they a good investment?
BMO S&P/TSX Laddered Preferred Share Index ETF, $10.93, symbol ZPR on Toronto (Units outstanding: 90.6 million; Market cap: $990.3 million; www.etfs.bmo.com), holds Canadian floating-rate preferred shares. Issuers include Bank of Montreal, Enbridge, BCE, TransCanada and Canadian Utilities. The fund’s MER is 0.45%, and it currently yields 4.9%. Note that the dividends you receive from this fund benefit from the Canadian dividend tax credit. Floating-rate preferred shares pay dividends that fluctuate with changes in interest rates. The dividend rate may range from 50% to 100% of (usually) the prime bank rate. As interest rates rise, so do floating-preferred dividend yields....
Our outlook for Canadian dividend stock Freehold Royalties as it maintains a high yield while buying up oil and gas properties.
Many brokers ignore Andrew Peller, but this hidden gem’s steady growth earns it our rating as one of the best Canadian dividend stocks.
The Renaissance Optimal Income Portfolio Fund seeks to generate income, mainly by investing in units of the mutual fund company’s Canadian and global funds. The $2.9-billion fund has a 1.92% MER (which reflects the MERs the individual funds charge). It yields 4.0%. The fund has the following holdings: Renaissance Canadian Bond, 30.1%; Renaissance Canadian Dividend, 24.7%; Renaissance Global Infrastructure, 14.9%; Renaissance Global Bond, 10.1%; Renaissance High-Yield Bond, 9.9%; Renaissance Floating Rate Income, 5.1%; and Renaissance Real Return Bond, 4.9%. The managers of the individual funds include Ares Management, headquartered in Los Angeles; Brandywine Global, based in Philadelphia and a subsidiary of Legg Mason; CIBC Asset Management; and Sydney, Australia-based RARE Infrastructure Ltd....
When you look to buy Canadian dividend stocks, dividend yield is an important consideration but in some cases the yield can be misleading.
With $44 billion earmarked for new projects, Enbridge builds up its cash flow and keeps our rating as one of Canada’s best dividend stocks.
We think the big banks remain some of the strongest Canadian dividend stocks, but warn against buying them through this split share company.
iShares Canadian Financial Monthly Income ETF, $6.99, symbol FIE on Toronto (Units outstanding: 45.0 million; Market cap: $314.6 million; www.blackrock.com), is a balanced fund with 16% of its assets in bonds and 16% in preferred shares. The other 68% is in common stocks. We don’t generally recommend balanced funds, as bonds are unlikely to perform well over the next few years, if only because interest rates will likely hold steady or rise. That means the fund would only earn interest income on its bonds; instead of capital gains, its bond holdings could produce capital losses. The iShares Canadian Financial Monthly Income ETF holds mostly corporate bonds, which expose you to varying levels of risk. Some are almost as safe as government bonds and offer only slightly higher yields. Others offer higher yields but are much riskier....