Without having to worry about withholding taxes on U.S. equities, investors can maximize their dividend income by holding a portfolio of Canadian dividend stocks. And inside of a tax free savings account, those earnings would not be taxable at all.
The fund holds some of the top dividend stocks on the TSX, including Enbridge Inc (TSX:ENB)(NYSE:ENB) and Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM).
With many of these stocks regularly increasing their dividend payments over the years, there’s plenty of reason to hold the ETF for the long term. And while the stocks often pay quarterly, the fund pays investors every month, providing for a very consistent stream of income.
The only real negative about the fund is that it is near its 52-week high. But with a beta of around one, the stock shouldn’t be any more volatile than the TSX.