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

Article Excerpt

ISHARES S&P/TSX CANADIAN DIVIDEND ARISTOCRATS INDEX ETF $32 (Toronto symbol CDZ; Units outstanding: 28.1 million; Market cap: $899.2 million; Dividend yield: 3.95%; www.blackrock.com/ca) aims to mirror the performance of the S&P/TSX Canadian Dividend Aristocrats Index. The ETF holds 91 stocks. Its top 10 holdings are Fiera Capital, 3.4%; Enbridge Inc., 2.5%; Allied Properties REIT, 2.4%; TC Energy Corp., 2.4%; Bank of Nova Scotia, 2.3%; Aecon Group, 2.1%; Capital Power Corp., 2.1%; BCE Inc., 2.0%; Exchange Income Corp., 2.0%; and CIBC, 2.0%. Financial stocks account for 30% of the fund’s assets, while Energy (12%), Industrials (10%), Real Estate (10%), Utilities (10%), Communications (9%), Materials (7%), Consumer Staples (7%), Consumer Discretionary (3%) and Information Technology (1%) are other key segments. The fund launched on September 8, 2006. It charges an MER of 0.66%, and yields 3.95%. 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…