The S&P/TSX Composite Index plunged 153 points on Monday, September 26. Canadian stocks have continued to post losses after posting four triple digit losses out of five days in the previous week. Today, I want to focus on an exchange-traded fund (ETF) that is worth targeting in the middle of this volatile market. Let’s jump in.
iShares S&P/TSX Canadian Dividend Aristocrats Index ETF (TSX:CDZ) is an exchange-traded fund (ETF) that seeks to replicate the S&P/TSX Dividend Aristocrats Index less fees and expenses. A dividend aristocrat is a Canadian stock that has delivered at least five straight years of dividend growth. Investors who are on the hunt for a diversified portfolio of dependable dividend paying Canadian companies. Moreover, this fund allows its shareholders to churn out regular monthly income.
Shares of this ETF have dropped 11% in 2022 as of close on September 26. That has pushed this ETF into negative territory in the year-over-year period. This ETF has been dependable in the face of volatility, but it has also succumbed to the recent bout of turbulence. That said, I’m still looking to hold this ETF going forward.
Investors who want to snatch up this fund will have to fork over a middling MER of 0.66%. Some of the top holdings in this fund include Capital Power, a top renewable energy company, Slate Grocery REIT, Pembina Pipeline, and Enbridge, an energy infrastructure giant. Moreover, it offers a monthly distribution of $0.095 per share. That represents a 3.5% yield.
