If you don't want to worry about stock market volatility and just want a quality dividend investment to put in your portfolio, then there is an excellent exchange-traded fund (ETF) for you to consider: the RBC Canadian Bank Yield Index ETF (TSX:RBNK).
The ETF, as its name suggests, focuses on Canadian bank stocks and thus, offers a very attractive yield. Currently, it's at around 3.1%, which is above average. Bank stocks have been rising this year and so the yield has come down, but it's still an excellent payout that you can safely rely on.
And with bank stocks performing well, this ETF has been a star on the TSX. It has risen by 19% so far this year and over the past 12 months, it's up nearly 60%. For investors, this can be a solid investment that gives you not only some safe dividend income, but the opportunity to benefit from the growth of Canada's top banks.
The country’s biggest banks are known for being stable, well-regulated, and of course, providing shareholders with some great dividends. Instead of trying to pick the single best bank stock, this ETF gives you exposure to all of the big banks, which helps spread out your risk right away.
The advantage of this ETF is that it has a unique stock weighting to help maximize your dividend income and returns. It can be a great long-term investment to put inside your tax-free savings account and just hang on to for years. While it may decline if there's a downturn in the economy, there's minimal risk when investing in the top Canadian bank stocks over the long run.
