The Canadian equity market has come under pressure this year as risk assets took a beating at the start of this year amid concerns over global economic growth. The S&P/TSX Composite Index fell sharply at the start of this year but has since recovered. Year-to-date, the index is now showing a gain of almost 1.30%. However, equity markets are expected to remain volatile amid a great deal of uncertainty over U.S. rate hikes and the state of the Chinese economy. Therefore investors should consider adding dividend stocks to their portfolio for steady income during a period of possible downturn. Canadian investors also have the option to invest in ETFs focused on dividend paying stocks. Here are some options:
First Trust AlphaDEX Canadian Plus ETF (TSX: FDY)
The fund seeks to provide unitholders with exposure to the performance of a portfolio of higher yielding Canadian dividend paying stocks. It also provides unitholders with monthly distributions. FDY currently offers a yield of 4.17%.
Vanguard FTSE Canadian High Dividend Yield Index ETF (TSX: VDY)
The fund seeks to track the performance of the FTSE Canada High Dividend Yield Index. Its top holding is Royal Bank of Canada (TSX: RY). VDY currently offers a yield of 3.91%.
