Topic: How To Invest

Hi, Pat: I would appreciate your comments about the BMO US Dividend Hedged to CAD ETF. Thank you.

Article Excerpt

BMO US Dividend Hedged to CAD ETF, $17.36, symbol ZUD on Toronto (Units outstanding: 5.3 million; Market cap: $92.0 million; www.etfs.bmo.com), holds U.S. stocks that have maintained or increased their dividend rates over the last three years and meet other criteria, including yield and dividend payout ratio. The fund’s managers rebalance the underlying portfolio in June and December. Top holdings are Philip Morris International, ONEOK Inc., Garmin, Noble Corp., Verizon Communications, Mattel, Williams Cos., Gamestop, McDonald’s and Darden Restaurants. The ETF is hedged against movements of foreign currencies against the Canadian dollar. Its value rises and falls solely with the stocks in its portfolio, so it wouldn’t give you any diversification through foreign currency exposure. Dividends are typically a sign of investment quality. Some good companies reinvest their profits instead of paying dividends, but fraudulent and failing companies are hardly ever dividend-paying stocks. So if you only buy stocks that pay dividends, you’ll automatically stay out of almost all of the…

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