The S&P/TSX Composite Index has started fast in the month of November. It gained another 75 points on November 4 after a triple-digit gain on Friday. Today I want to focus on an ETF that is focused on Canadian dividend stocks.
This is a solid option for investors who are on the hunt for stability. Unsurprisingly, it is heavily weighted in the financial and energy sectors.
The iShares Canadian Select Dividend ETF (TSX:XDV) has climbed 19.1% in 2019 as of close on November 4. This comes after a 12.5% drop in 2018.
Mirroring the performance of the broader TSX, the ETF got off to a fast start this year, but its gains have been muted in the late summer and early fall.
Some of the top holdings in the ETF include Canadian Imperial Bank of Commerce, which is the fifth largest of the “Big Five” Canadian banks.
However, CIBC stock boasts a hefty dividend in comparison to its peers. Royal Bank, Bank of Montreal, and Scotiabank are the three next highest weightings. BCE stands as the only non-bank holding in the top five.
Investors looking to temper down the risk in their portfolios should consider this ETF in early November. It also boasts a monthly dividend payout of $0.09 per share, representing a 4.4% yield. With lower interest rates on the horizon I love these stable income-yielding equities ahead of the New Year.
