A Yield to Caution: iShares S&P/TSX Canadian Dividend Aristocrats Index ETF

Article Excerpt

ISHARES S&P/TSX CANADIAN DIVIDEND ARISTOCRATS INDEX ETF $35 (Toronto symbol CDZ; Units outstanding: 26.0 million; Market cap: $910.0 million; Dividend yield: 3.7%; www.blackrock.com/ca) aims to mirror the performance of the S&P/TSX Canadian Dividend Aristocrats Index. The ETF hold 90 stocks. Its top 10 holdings are BCE Inc., 3.6%; Allied Properties REIT, 3.2%; Telus, 2.8%; South Bow Corp., 2.8%; Fiera Capital, 3.3%; CT REIT, 2.3%; Cogeco Inc., 2.2%; Emera, 2.0%; Enbridge Inc., 2.0%; and First National Bank, 2.0%. Financial stocks account for 23% of the fund’s assets, while Energy (15%), Real Estate (13%), Communications (12%), Utilities (11%), Consumer Staples (9%), Industrials (8%), Materials (4%), Consumer Discretionary (4%) and Information Technology (2%) are other key segments. The fund launched on September 8, 2006. It charges an MER of 0.66% and yields 3.7%. The S&P/TSX Canadian Dividend Aristocrats Index ETF only includes stocks or trusts that have raised their dividends for five consecutive years. This means the index excludes a number of sound companies that pay dividends but haven’t increased…