The iShares Canadian Dividend Aristocrats Index ETF (TSX:CDZ) is a diversified exchange-traded fund that offers a 3.5% yield and focuses exclusively on Canadian companies that have increased their dividends for at least five consecutive years. While its management fee of 0.60% is higher than some broad-market ETFs, the targeted approach prioritizes stability and dividend growth, which could be worth the premium for income-seeking investors.
Dividend Aristocrats are known for their reliable track records and disciplined payout increases, offering the potential for growing income over time. Although dividend growth is never guaranteed, this ETF concentrates on companies considered among the more stable dividend payers in the Canadian market.
CDZ holds around 90 stocks, with no single company dominating the fund. The largest holding, Allied Properties Real Estate Investment Trust (TSX:AP.UN), makes up less than 4% of the portfolio.
Financial stocks are make up 23% of the fund, followed by energy at 15%, real estate at 13%, and utilities just under 11%. This balance allows for good diversification and exposure to income-generating sectors while limiting concentration risk.
The fund pays monthly distributions, which is a plus for investors looking for steady cash flow. CDZ has climbed 11% so far in 2025, delivering both capital appreciation and income for its investors. And over five years, it has risen by 56%.
If your priority is to minimize your risk while also generating some solid monthly dividend income, this is an ETF you may want to consider putting in your portfolio for the long haul.
