In the dynamic world of personal finance, students often find themselves in search of a banking solution that caters to their unique needs. Recognizing this, the BMO Performance Chequing Account emerges as a compelling option, tailored specifically for students. In this article, we delve into the features, benefits, and nuances of this financial product to help students make informed decisions about managing their finances during their academic journey.
Product Overview:
The BMO Performance Chequing Account for students is designed to provide a seamless banking experience with a range of exclusive perks. Let’s break down the key components:
Offer:
The account comes with a tempting opening offer—an attractive $100 cash bonus. This serves as an enticing incentive for students to kickstart their banking relationship with BMO. Additionally, during their time in school and one year after graduation, students can enjoy the luxury of no monthly fees, alleviating financial strain during this crucial period of academic pursuits.
Monthly Fees:
The absence of monthly fees while in school and during the initial post-graduation year is a significant advantage. This feature recognizes the financial challenges students face and aims to support them during their educational journey. Beyond this period, the account incurs a reasonable monthly fee, making it a sustainable choice for the long term.
Other Fees:
While the account boasts no monthly fees for a specified duration, it’s essential to be aware of potential fees associated with certain transactions. An overdraft protection fee of $5 per month is applicable. Moreover, the account includes one free Canadian withdrawal per month. Subsequent Canadian withdrawals are charged at $2 each. Transactions made outside of Canada and the U.S. incur a higher fee of $5 each. These fees underline the importance of understanding the terms and conditions associated with the account.
Number of Transactions:
One of the standout features of the BMO Performance Chequing Account is the unlimited number of transactions it offers. This is particularly advantageous for students who may have varied financial activities, from daily purchases to more infrequent, substantial transactions. The absence of transaction limits ensures that students can manage their finances without restrictions.
Benefits for Students:
Cash Bonus Incentive:
The $100 opening cash bonus serves as a generous welcome gesture. For students managing tight budgets, this injection of funds can be a valuable boost, helping cover initial expenses related to their education.
Fee Waiver Period:
The waiver of monthly fees while in school and for the first year post-graduation acknowledges the financial challenges students face during these periods. This feature reflects BMO’s commitment to supporting students in their educational endeavors.
Flexible Transaction Limits:
The unlimited number of transactions allows students to conduct their financial activities without worrying about hitting predefined limits. This flexibility is crucial for managing day-to-day expenses, online transactions, and occasional larger financial moves.
Conclusion:
The BMO Performance Chequing Account for students presents a compelling blend of incentives, fee waivers, and flexibility. The $100 cash bonus, coupled with the absence of monthly fees during crucial academic phases, positions this account as an attractive option for students
In an era defined by technological transformation, the rise of Artificial Intelligence (AI) stands as one of the most profound shifts in the global landscape. AI, once confined to the realm of science fiction, has become a driving force behind innovation, reshaping industries. As the world becomes increasingly reliant on AI-driven solutions, the AI sector is presenting investors with a wealth of opportunities. In this blog post, we’ll explore four Best AI stocks poised for exponential growth, delving into their promising prospects.
Meta Platforms (NASDAQ:META)
Profile
Meta Platforms, Inc. is a global company focused on creating products that facilitate connections and sharing among individuals across various platforms, including mobile devices, personal computers, virtual reality headsets, and wearables.
Meta Platforms, the parent company of Facebook, has experienced a remarkable surge in its stock price, soaring by almost 200% over the past year. This impressive growth is largely attributed to the company’s strategic investment in artificial intelligence. That investment has enabled it to navigate and overcome the challenges related to data privacy.
One noteworthy financial highlight is the substantial growth in diluted earnings per share (EPS), which has outpaced the growth in operating income, registering an impressive 21% year-over-year increase. This remarkable performance can be partly attributed to Meta’s aggressive share repurchase program, which benefits current shareholders.
However, despite these positive trends, there are several key concerns looming on the horizon for Meta Platforms. The ongoing Department of Justice (DOJ) antitrust trial against Google has raised questions about potential regulatory actions. The potentiel actions could impact Meta and its market dominance. Additionally, the company is facing profitability headwinds, which pose challenges to sustaining its current growth trajectory. Furthermore, the expanded valuation of Meta’s stock raises questions about its long-term sustainability and whether it can continue to justify its current market value in the face of these challenges.
Source: Earnings presentation – Best AI stocks
Meta observed a 1.4% sequential growth in its monthly active users (MAUs) on the Facebook platform.
UiPath Inc. is a prominent enterprise software company renowned for its comprehensive automation platform specializing in robotic process automation (RPA). With a strong presence in the United States, Romania, and Japan, UiPath revolutionizes business operations by leveraging RPA technology. RPA involves the utilization of software robots or digital workers to streamline and automate repetitive, rule-based tasks. Traded on the New York Stock Exchange under the ticker symbol PATH, UiPath Inc. is at the forefront of innovation in the field of automation solutions.
UiPath, trading under the ticker symbol PATH, stands as a prominent player in the enterprise software arena, renowned for its state-of-the-art robotic process automation (RPA) platform, underpinned by advanced AI technology. This RPA innovation not only aids corporations like Uber Technologies, Inc. (UBER) in cost reduction but also propels UiPath to the forefront of the automation industry. The company’s strategic alliances with major industry players have further cemented its leadership position.
Currently, UiPath is shifting towards a business automation platform with AI at its core. This strategic pivot furnishes the company with a distinct competitive advantage, particularly in terms of harnessing data and delivering user-friendly solutions.
From a financial standpoint, UiPath exhibits robust stability, characterized by an absence of debt and substantial cash reserves. In addition, the recorded consistently positive free cash flow. This financial prowess empowers the company to allocate resources towards vital research and development (R&D) initiatives and seize opportunities for mergers and acquisitions (M&A). These endeavors not only propel UiPath’s growth but also drive ongoing innovation within the automation sector.
Salesforce (NYSE:CRM)
Profile
Salesforce, a trailblazer in the realm of Customer Relationship Management (CRM), leverages the power of cloud computing and artificial intelligence (AI) to champion customer success. The company’s comprehensive suite of services encompasses sales functionalities like data storage, lead tracking, progress monitoring, opportunity forecasting, analytics-driven insights, relationship intelligence, and the seamless generation of quotes, contracts, and invoices. In addition, Salesforce’s service arm empowers businesses to provide trustworthy and deeply personalized customer service and support on a large scale, ensuring the highest levels of customer satisfaction.
Salesforce (CRM) presents an enticing investment prospect with its combination of robust profitability, consistent double-digit revenue growth, and a strategic emphasis on AI-driven productivity. In its recent Q2 earnings report, Salesforce not only exceeded expectations but also revised its full-year guidance upward. This impressive performance is fueled by strong demand for the company’s AI tools seamlessly integrated throughout its software ecosystem, highlighting Salesforce’s promising position in the market.
OKTA is a cloud-based cybersecurity company specializing in user identity authentication and management across various devices. Their Workforce Identity Cloud empowers organizations to enhance workforce security and establish secure collaborative solutions with partner networks.
Okta (OKTA), a pioneer in identity management and single sign-on technology, has enjoyed a remarkable 30% surge in its stock price this year. This surge is indicative of the success of the company’s strategic shift towards becoming a comprehensive provider in the identity security market, and it suggests that its turnaround efforts are moving in a positive direction.
However, there is a noteworthy concern that has emerged over the past year: a slowdown in customer growth. In the second quarter, Okta was able to onboard 350 new customers, representing a growth rate of 12%, bringing its total customer base to 18,400. Despite these challenges in customer growth, Okta has demonstrated strong sales momentum and profitability, effectively acquiring new customers and expanding billing with existing ones.
It’s essential to acknowledge that Okta’s current valuation is relatively high. This valuation reflects the market’s optimism and high expectations regarding the company’s future potential and growth prospects.
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Global X is one of the largestETF issuers in North America. In this post, we will focus on their covered call ETFs whose main objective is to maximize dividend yield. In fact, Covered call ETFs are more and more popular among income oriented investos. Global X had issued various ETFs within this category with different strategies to cater to most investors.
QYLD is a passive index ETF that uses a covered call strategy to enhance yield and lower volatility. The fund was created by Global X and tracks the Nasdaq 100. The manager follows a “covered call” or “buy-write” strategy, in which the Fund buys the stocks in the Nasdaq 100 Index and “writes” or “sells” corresponding call options on the same index.
When it comes to investing, finding the right balance between risk and reward is a constant pursuit. The QYLD ETF, or the Global X NASDAQ 100 Covered Call ETF, is an investment option that has captured the attention of both conservative investors and income seekers. In this exploration, we delve into the positives and drawbacks of QYLD, shedding light on its unique attributes.
Positives: Embracing Income and Stability
Attractive Yield: QYLD is often celebrated for its attractive yield, which is primarily derived from the premiums earned by issuing call options on the NASDAQ 100 index. For those seeking a regular income stream, this feature can be enticing, offering a consistent source of cash flow.
Lower Volatility: Another notable advantage of QYLD is its lower volatility when compared to direct investments in the NASDAQ 100, such as QQQ. The covered call strategy embedded in the fund serves as a cushion, effectively reducing overall volatility. This quality makes it particularly appealing to conservative investors who prioritize capital preservation.
Time and Effort Saved: QYLD provides a valuable shortcut for investors. Writing call options in the NASDAQ 100 involves extensive research, active management, and ongoing monitoring. QYLD simplifies this process by offering a professionally managed covered call strategy, saving investors both time and effort.
Liquidity: With assets under management surpassing 6 billion dollars, the fund offers liquidity that ensures investors can efficiently trade shares as needed.
Drawbacks: Considerations on Performance and Diversification
Performance Limitations: While QYLD excels in income generation and risk reduction, it’s important to recognize that this strategy has its limitations. The covered call approach inherently places a cap on the fund’s potential for capital appreciation. As a result, investors may miss out on the full upside potential of the NASDAQ 100, particularly during robust market rallies.
Market Unpredictability: In the face of an unpredictable or highly volatile market, the effectiveness of covered call strategies like the one employed by QYLD may be challenged. While it serves as a risk management tool during stable market conditions, extreme fluctuations can render the strategy less effective.
Lack of Diversification: QYLD’s dominance by tech firms means it falls short of offering true diversification. Investors looking for a broad spectrum of investments beyond the tech sector may find this aspect limiting.
High Fees: It’s worth noting that QYLD comes with a total expense ratio of 0.60%, which some investors may find relatively high compared to other ETF options.
In conclusion, the QYLD ETF presents a unique investment proposition with its emphasis on income generation and risk management. However, it’s crucial for investors to weigh these advantages against the potential limitations and consider their individual financial objectives and risk tolerance. The decision to invest in QYLD should align with one’s investment strategy and goals, keeping in mind the trade-offs involved in pursuing income and stability in a dynamic market landscape.
Volatility comparison: QYLD has a lower volatility than the NASDAQ 100 (source of graphic: portfoliolabs.com)In bear markets, QYLD protects investors and in normal circumstances will offer a better performance than the NASDAQ 100. The graphic depicts growth of 10K invested in the past 6 Months
QYLD Top ten holdings
Net Assets (%)
Name
11.85
APPLE INC
11.79
MICROSOFT CORP
6.54
AMAZON.COM INC
3.91
ALPHABET INC-CL C
3.88
ALPHABET INC-CL A
3.66
NVIDIA CORP
2.75
TESLA INC
2.72
META PLATFORMS INC
2.08
PEPSICO INC
2.03
BROADCOM INC
XYLD -Global X S&P 500 Covered Call ETF
XYLD is a passive index ETF that uses a covered call strategy to enhance yield and lower volatility. The fund was created by Global X and tracks the S&P500. The manager follows a “covered call” or “buy-write” strategy, in which the Fund buys the stocks in the S&P 500 Index and “writes” or “sells” corresponding call options on the same index. So far, XYLD has paid monthly distributions 9 years running.
The XYLD ETF, or the Global X S&P 500 Covered Call ETF, presents a compelling investment option with a range of benefits that cater to various investor preferences. This ETF employs a covered call strategy on the S&P 500, offering a unique blend of income generation and risk management.
One of the most appealing features of XYLD is its attractive yield, primarily derived from the premiums earned by issuing call options on the S&P 500. For income-seeking investors, this regular income stream can be an attractive proposition, offering consistent cash flow.
What sets XYLD apart is its lower volatility when compared to directly investing in the S&P 500 through ETFs like SPY. The covered call strategy acts as a buffer, helping to reduce the fund’s overall volatility. This characteristic makes it particularly well-suited for conservative investors who prioritize capital preservation.
It’s worth noting that higher market volatility often translates into increased premiums earned by the fund. This dynamic can further enhance the yield potential for XYLD, making it an enticing option during turbulent market conditions.
Additionally, XYLD can save investors valuable time and effort. If you were to take on the task of writing call options on the S&P 500 yourself, it would require substantial research, monitoring, and active management. XYLD simplifies this process by offering a diversified investment strategy that automatically implements the covered call approach.
Liquidity is another advantage of XYLD. With over 6 billion dollars in assets under management, the fund offers ample liquidity, ensuring that investors can efficiently buy and sell shares as needed.
In summary, the XYLD ETF presents a diversified investment opportunity that combines an attractive yield, lower volatility, and the convenience of a professionally managed covered call strategy. This blend of features makes it an appealing choice for conservative investors, income seekers, or those looking to streamline their investment approach.
Volatility comparison: XYLD has a lower volatility than the S&P 500 (source of graphic: portfoliolabs.com)
Negatives
However, it’s essential to be aware of a couple of potential drawbacks. Firstly, while the ETF’s strategy is effective in generating income and reducing volatility, it does mean that investors may miss out on the full upside potential of the S&P 500. The covered call strategy inherently places a cap on the fund’s potential for capital appreciation, which can be a trade-off for the income it provides.
Secondly, it’s important to acknowledge that the strategy of covered calls may become less effective in an unpredictable or highly volatile market. While it can act as a risk management tool during normal market conditions, extreme fluctuations can challenge the effectiveness of this approach.
Top Holdings
Net Assets (%)
Name
6.28
APPLE INC
5.37
MICROSOFT CORP
2.58
AMAZON.COM INC
1.73
ALPHABET INC-CL A
1.71
BERKSHIRE HATH-B
1.55
ALPHABET INC-CL C
1.43
EXXON MOBIL CORP
1.41
UNITEDHEALTH GROUP INC
1.38
JOHNSON & JOHNSON
1.30
NVIDIA CORP
RYLD -Global X Russell 2000 Covered Call ETF
RYLD is an index ETF with an active covered call strategy in place to enhance yield. The index tracked is the Russell 2000, which consists of small to mid cap stocks. This fund is different than XYLD or QYLD because the focus here is not on large cap stocks. When investing in small caps, investors hope usually for higher growth. Small caps are also known to outperform large caps in begenning of the growth phase of the economy.
RYLD writes call options on the Russell 2000 Index (a succession of one-month at-the-money covered call options). The fund does not use leverage.
The Russel 2000 top three holdings are Ovintiv, Avis Budget Group, and Antero Resources.
QYLG -Global X Nasdaq 100 Covered Call & Growth ETF
As shown in the table above, summary of strategies. This fund is one of the ETFs whose objective is to seek both growth and income. Therefore, the strategy in place uses covered call options, however, on only 50% of the portfolio. In other words, QYLG is similar to QYLD but it will offer less dividends and more room for growth. Besides, in normal market conditions, QYLG will be more volatile than QYLD.
As its name implies, QYLG is an index fund and is replicating the portfolio constituents of the Nasdaq 100.
As shown in the table above, summary of strategies. This fund is one of the ETFs whose objective is to seek both growth and income. Therefore, the strategy in place uses covered call options, however, on only 50% of the portfolio. In other words, XYLG is similar to XYLD but it will offer less dividends and more room for growth. Besides, in normal market conditions, XYLG will be more volatile than XYLD.
As its name implies, XYLG is an index fund and is replicating the portfolio constituents of the S&P 500.
This fund allows investors to track 30 Dow stocks and generate income through issuing covered call options. DJIA is less diversified than XYLD, since the S&P 500 is much larger and broader than the Dow 30.
The 30 companies making up the index are mostly bluechips.
The BMO Covered Call U.S. Banks ETF (ZWK) is professionally managed by BMO Global Asset Management. The fund has been designed to provide exposure to a portfolio of U.S. banks while earning call option premiums.
The fund invests in 38 US Banks. It’s ideal for investors looking for dividend income. The dividend yield on November 24th was 6.19%!
The fact that the fund uses call options accomplishes two things:
increases the dividend yield;
reduces volatility but also growth potential. So, it’s something to keep in mind.
What’s unique about this ETF is that it uses covered calls to protect against downside risk. This being said, the covered call strategy provides limited downside protection. Also, when you write a covered call, you give up some of the stock’s potential gains. These ETFs will tend to have a higher yield and a lower performance.
ZWK is an excellent option for conservative investors looking for a steady income, moderate volatility and exposure to the US banking sector.
– Total return: Though the focus here is on the dividend yield, you have to keep in mind the total return. The profit or loss we make on any investment combines both dividend income and capital gain or loss. Looking at the long-term performance of the fund is crucial. An ETF that provides a good capital appreciation with a high dividend yield is preferable.
–Diversification: A diversified ETF is always a safer option. Some high yield ETFs are sector-specific (Financials, Energy or Gold). The ones focused on Energy and Gold have had an inferior long-term performance and carry high volatility risk.
–Volume and liquidity of the ETF. The higher the asset under management, the lower the trading costs of the ETF (difference between the bid and ask price).
ZWK Dividend history
Distrib Period
Ex-Div Date
Pay Date
Cash Distrib Per Unit
Total Distrib Per Unit
January 2023
January 27, 2023
February 02, 2023
0.170000
0.170000
February 2023
February 24, 2023
March 02, 2023
0.170000
0.170000
March 2023
March 29, 2023
April 04, 2023
0.170000
0.170000
April 2023
April 26, 2023
May 02, 2023
–
–
May 2023
May 30, 2023
June 05, 2023
–
–
ZWK ETF Holdings
Weight (%)
Name
Ticker
7.56%
CITIGROUP INC
C
7.31%
GOLDMAN SACHS GROUP INC/THE
GS
7.30%
JPMORGAN CHASE & CO
JPM
7.24%
MORGAN STANLEY
MS
7.21%
BANK OF AMERICA CORP
BAC
7.18%
US BANCORP
USB
7.10%
WELLS FARGO & CO
WFC
6.29%
TRUIST FINANCIAL CORP
TFC
Consult issuers’ website for up-to-date data
In this post, we will be going over the Best Canadian Dividend Stocks Canada (Top 10). We started by reviewing the full list of the Canadian dividend aristocrats with over ten years of consistently increasing dividends. From the list, we picked ten stocks which we think are the best available in Canada right now.
Canadian dividend aristocrats
The list of Canadian ”Dividend Aristocrats” stocks is managed by the firm Standard and Poors. The index is titled the S&P Canadian Dividend Aristocrats. It requires a minimum of 5 years of successive dividend increases, which is low compared to the minimum 25 years for the US version of the index. You can check out our article on America’s Dividend Aristocrats here by sector.
For this post, we will share the list of Canadian “dividend aristocrats” stocks that have increased their dividends for at least ten consecutive years! In addition, we will also pick ten stocks among the ones most recommended by income-seeking bloggers. For each, we will provide financial data and analysis.
If you are asking yourself, what is the typical profile of a dividend aristocrat stock? I have listed some common characteristics below:
Dividend aristocrats tend to dominate their industry
• The vast majority are companies that are well established in their sector. They manage to generate significant profits thanks to their comfortable position against the competition. In some cases, they operate in regulated markets such as electric utilities with almost no competition;
Safe heaven during turbulent times
• “Dividend aristocrats” are sometimes considered by the financial market as safe havens in the event of a market correction or decline. Indeed, dividend aristocrats are generally less volatile than the market, and there are less targeted by speculators;
Strong financial statements
• “Dividend aristocrats” will tend to have a better financial situation in terms of liquidity than the rest of the market. Their levels of liquidity or debt are generally better than the rest of the market;
Limited growth but there are exceptions
• In general, dividend aristocrats are mature businesses. That is, the growth potential is quite limited. However, some companies can pay dividends and invest in their growth. Hence the importance of focusing on the dividend payout ratio.
What is a good dividend payout ratio
The dividend payout ratio is the amount of dividend distributed by a company divided by the total earnings. For example, a company makes a profit of $ 100 and pays $ 40 in dividends. Its payout ratio is 40%.
How to interpret a payout ratio
If the ratio is high, the company pays almost all of its profits in dividends. There will be little money left in the coffers to innovate or expand to new markets;
It is preferable to invest in a company where the dividend payout ratio is low or medium. The reasoning is that these companies will have money set aside to invest in new projects and thus create growth;
Another variation of payout ratio (Trailing div / Earnings) is the payout ratio to cash (Div / Free cash flows). Earnings can be easily manipulated, so analysts use the payout ratio to cash to assess the safety of dividends better. The website ‘Marketbeat‘ provides the payout ratio to cash for Canadian stocks.
Total return
When one wishes to invest in a dividend-paying stock, it is essential to pay attention to its performance and growth potential. The most common mistake is to invest in stocks with high dividend yields. This strategy is risky. Here’s why :
• A stock can pay a high dividend yield, but is it sustainable? Some companies have a payout ratio that is close to and even exceeds 100%. They manage to post desirable dividend yields, but if we look at the growth prospects, it’s almost nil;
• Investors sometimes shun companies for lack of growth potential or actual risk of lower revenues in the future. These companies experience a drop in the price of their shares, and this causes the dividend yield to become abnormally high. Sooner or later, these businesses will have to cut their dividend.
Best canadian dividend stocks – full list
The table below lists the Canadian Dividend Aristocrats. Stocks are ranked by the number of successive years of dividend increase. These stocks are considered the best dividend stocks in Canada.
Symbol– Name
DGR* Streak
CU –Canadian Utilities
49
FTS -Fortis
47
TIH -Toromont Industries
31
CWB –Canadian Western Bank
29
ACO.X -Atco Ltd
27
TRI -Thomson Reuters Corp
27
IMO -IMPERIAL OIL
26
MRU – Metro Inc
26
EMP.A -Empire Company (A)
26
ENB.TO – Enbridge
25
CNR -Canadian National R.R.
25
SAP – Saputo Inc
23
TRP – TC Energy
20
CNQ -Canadian Natural Rsrcs
20
TCL.A -Transcontinental Inc. (A)
19
FTT – Finning Int
19
CCL.B -CCL Industries (B)
19
RBA -Ritchie Bros Auctioneers
18
T – Telus
17
CCA -Cogeco Cable
17
CGO – COGECO Inc
16
IFC – Intact Financial
16
SJ – Stella-Jones Inc.
16
XTC– Exco Technologies
15
ADW.A – Andrew Peller
15
EMA – Emera Inc
14
ENGH – Enghouse Systems
14
BYD -Boyd Group Services
14
FNV – Franco-Nevada Corp.
13
TCS – Tecsys Inc
13
BCE – BCE Inc
12
NA – National Bank
11
MG – Magna Int’l. (A)
11
LGT.B – Logistec Corp
11
ATD.B –Alimentation Couche-Tard
11
WCN -Waste Connections
11
KEY -Keyera Corp
10
EIF -Exchange Income
10
CM -CIBC Bank
10
BNS -Bank of Nova Scotia
10
AQN- Algonquin Power and Utilities Corp
10
TD – TD Bank
10
GRT.UN -Granite Real Estate Investment Trust
10
RY -Royal Bank
10
CTC.A -Canadian Tire Corp Cl A NV
10
GCG.A -Guardian Capital Gr
10
HDI -Hardwoods Distribution
10
EQB -Equitable Group Inc
10
TFII -Tfi International Inc
10
DOL -Dollarama Inc
10
Best dividend stocks Canada
* Number of years of successive dividend increases
The stocks below are the ones most recommended by Canadian bloggers. We present you the relevant financial information with our comments and analysis.
Canadian Utilities Limited and its subsidiaries are engaged in the electricity, natural gas, and retail energy industries. Canadian Utilities has increased its dividends continuously for 49 years!
Analysts see weak growth for this stock in the future. One can also question the ability of Canadian utilities to increase their dividends in the future since the pay-out ratio is high. Remember that when interest rates rise, utility companies compete with bonds; conservative investors tend then to drop utilities for bonds, causing a sell-off of utility stocks.
Fortis Inc. operates as an electric and gas utility company in Canada, the United States, and the Caribbean countries.
Analysts recommend Fortis for anyone looking for stable and predictable dividend income. Fortis has increased its dividends for 47 consecutive years. The company serves more than 2.2 million electricity customers and 1.1 million gas utility customers. Fortis offers a good dividend yield and a decent dividend growth rate (6.79% over the last five years).
In an effort to boost growth, Fortis is diversifying its portfolio assets to include clean energy and renewable energy sources.
Toromont Industries Ltd. supplies specialized capital goods in Canada, the United States, and abroad. It operates in two segments, Equipment Group and CIMCO. The Equipment Group segment is engaged in the sale, rental, and maintenance of mobile equipment. The CIMCO segment is involved in the design, engineering, manufacture, installation, and aftermarket support of refrigeration systems in the industrial and recreational markets.
Toromont is a well managed company that frequently beats market estimates. This stock is perfect if you want to have a combination of dividend income and growth potential. It’s a long-term buy.
The company has continuously increased its dividends for over 31 years. Over the past five years, the dividend has increased by 13%.
Enbridge is responsible for transporting a quarter of the oil produced in North America through its extensive pipeline system. The company also transports one-fifth of the natural gas used in the United States.
Enbridge is often part of the best dividend stocks in Canada. And for a good reason! Despite a high dividend rate and sometimes bad economic conditions, the company has never reduced its dividends and continues to increase them.
Analysts agree on the low growth potential for ENB. However, Enbridge remains a business with stable income stemming from an existing pipeline system.
The Canadian National Railway Company is active in the rail and related transportation industry. The company operates a 19,500-mile road network spanning Canada and the United States. Among other things, it transports petroleum and chemicals, grains and fertilizers, coal, metals and minerals, and forest products.
Canadian National Railway has diversified revenues across several product lines. Although the rate of return is low at 1.62%, the company is recording an exciting dividend growth rate of 13% over five years.
Telus provides a range of telecommunications products and services, including wireless and wired voice and data. The company has approximately 11 million subscribers.
T.TO has been increasing its dividends for 17 years now.
The pandemic has reduced the company’s revenue, mainly the profits made on the “Roaming” calls/data used while traveling. The dividend payout ratio is worrying at 132%. It’s worth noting, the payout ratio to cash is 76%. The latter is considered a better measure of the sustainability of the dividends.
National Bank is the sixth-largest bank in Canada. It has a strong presence in Quebec.
NA was the best-performing stock this year among banking stocks. The company has a dividend rate of return of 2.79% with good growth potential. Dividends have grown by almost 7% over the past five years.
National Bank is recognized for its dynamism and continues to grow outside Quebec.
TD Bank is one of the largest Canadian banks. The dividend rate of return stands at 3.63%, with impressive growth over the last five years at around 9%.
The company has increased its dividends every year for the past ten years now. The banking sector has shown a substantial rise since the almost normal recovery of economic activity in North America.
AQN is very well managed and has one of the strongest growth profiles in the industry. The valuation is attractive. Investors faced with the risk of rising interest rates are beginning to lose interest in companies that provide regulated public services.
Dividend growth is exciting at 21%. The rate of return is relatively low at 0.73%. Couche-Tard is a company that aims for long-term growth mainly through acquisitions, and the potential is there. Less than 25% of convenience stores in North America are part of a chain.
Couche-Tard managed to soften the impact of the pandemic with high margins in the petroleum products sales. The increased margin compensated for lower sales. This being said, these margins are not sustainable long term.
EV market is growing and Couche-Tard knows it will hurt its bottom line. The company is already starting to rethink its products mix to adapt to this new trend.
Investing in an AI ETF can be a good way for investors to gain exposure to the potentially high-growth exponential technology sector without having to invest in individual Artificial Intelligence stocks. ETFs provide diversification by spreading your investment across multiple companies, which can help to reduce risk. In this post, we will discuss the most popular ETFs that give investors exposure to the AI sector (AI ETF List).
Artificial Intelligence
The digital revolution has given rise to artificial intelligence (AI), a disruptive technology that has a high potential for growth and is attracting the attention of asset managers as a means of achieving better performance. This technology enables machines and software to think like humans, and according to experts, it is a silent revolution that is already causing changes in various sectors and opening up new opportunities for development.
The AI market was worth $200 million in 2015, and it is projected to reach almost $90 billion by 2025, potentially adding up to €13.5 trillion to the global economy by 2030, as per PwC’s analysis. Accenture’s study from 2016 suggests that AI could increase global productivity by 40% by 2035, allowing workers to focus on more fulfilling tasks. Furthermore, according to the World Economic Forum, AI has the potential to create 133 million jobs while eliminating 75 million, resulting in a net positive of 58 million jobs.
IYW is the ticker symbol for the iShares U.S. Technology ETF. This exchange-traded fund (ETF) is designed to track the performance of the Dow Jones U.S. Technology Index, which includes some of the largest and most well-known technology companies in the United States.
Some of the top holdings of the IYW ETF include companies like Apple, Microsoft, and Amazon, which are all leaders in the technology industry. The ETF also includes exposure to other subsectors of the technology industry, such as software, internet services, and semiconductor companies.
FTEC – Fidelity MSCI Information Technology Index ETF
FTEC is the ticker symbol for the Fidelity MSCI Information Technology Index ETF. This exchange-traded fund (ETF) is designed to track the performance of the MSCI USA IMI Information Technology Index, which includes a broad range of technology companies in the United States.
The FTEC ETF includes exposure to a wide range of technology subsectors, such as software, hardware, internet services, and semiconductor companies. Some of the top holdings of the FTEC ETF include companies like Apple, Microsoft, and Facebook, which are all leaders in the technology industry.
FDN is the ticker symbol for the First Trust Dow Jones Internet Index Fund. This exchange-traded fund (ETF) is designed to track the performance of the Dow Jones Internet Composite Index, which includes companies that generate at least 50% of their annual revenue from the internet.
The FDN ETF includes exposure to a wide range of internet subsectors, such as e-commerce, online advertising, and social networking companies. Some of the top holdings of the FDN ETF include companies like Amazon, Facebook, and Alphabet (Google), which are all leaders in the internet industry.
XT is the ticker symbol for the iShares Exponential Technologies ETF. This exchange-traded fund (ETF) is designed to provide exposure to companies that are developing and utilizing exponential technologies, which are technologies that have the potential to significantly change the way we live and work.
The XT ETF includes exposure to a wide range of subsectors, such as robotics, artificial intelligence, nanotechnology, and energy storage. Some of the top holdings of the XT ETF include companies like Tesla, Amazon, and Alphabet (Google), which are all leaders in the exponential technology industry.
IXN is the ticker symbol for the iShares Global Tech ETF. This exchange-traded fund (ETF) is designed to provide exposure to global technology companies across a range of industries, including hardware, software, semiconductors, and internet services.
The IXN ETF includes exposure to companies from around the world, with top holdings including companies like Apple, Microsoft, and Taiwan Semiconductor Manufacturing. The fund aims to provide investors with broad exposure to the global technology sector, which can help to reduce risk by diversifying across multiple regions and industries.
The BMO Laddered Preferred Share Index ETF (ZPR) has been designed to replicate, to the extent possible, the performance of the Solactive Laddered Canadian Preferred Share Index, net of expenses. The Fund invests in and holds the Constituent Securities of the Index in the same proportion as they are reflected in the Index. The constituents are preferred shares issued by major Canadian businesses.
ZPR is ideal for investor who are seeking a fixed income product with high dividend yield. These ETFs are pretty popular because they offer investors attractive yields with the possibility of capital appreciation. Among all fixed-income products, there’s no question that preferred shares usually provide the best return compared to bonds. This being said a preferred share carries more risk than owning a bond.
ZPR stock analysis and comments
ZPR has short-duration preferred shares (meaning the fund invests in preferred shares that have a short term maturity). ZPR also has rate reset features. If you think we will see rising rates, which is a reasonable assumption, they will ratchet their rates up to keep up with rising interest rates. If rates rise, it does participate and offset some inflation.
Thanks to the rate reset feature, ZPR offers more stability. Additionally, it is professionally managed by BMO Global Asset Management.
Source: Barchart / Dividend yield as of November 23rd
ZPR Stock: Morningstar rating
★★★
ZPR Monthly Dividend distribution
Year
Amount
Frequency
Ex-Div Date
Record Date
Pay Date
0.0450
Monthly
9/27/2023
9/28/2023
10/4/2023
0.0450
Monthly
8/29/2023
8/30/2023
9/5/2023
0.0450
Monthly
7/27/2023
7/28/2023
8/2/2023
ZPR Holdings
by preferred shares
Weight (%)
Name
1.70%
TC ENERGY SR 15 4.90 PFD
1.65%
ROYAL BANK SR BD 3.20 PFD
1.57%
BCE INC SR AK 2.954 PFD
1.38%
CANADIAN I SR 45 4.40 PFD
1.32%
ENBRIDGE I SR 19 4.90 PFD
1.30%
TORONTO-DO SR 5 3.876 PFD
1.22%
ENBRIDGE I SR 17 5.15 PFD
1.17%
INTACT FIN SR 3 3.332 PFD
1.12%
ENBRIDGE I SR 11 4.40 PFD
1.09%
CANADIAN I SR 47 4.50 PFD
ZPR stock: Sector Allocation
ZPR invests primarily in preferred shares of stocks operating in the financial and oil/Gaz industry.
26.69%, Diversified Banks.
21.85%, Oil & Gas Storage & Transportation.
8.21%, Life & Health Insurance.
ENB Dividend dates 2023
Ex-Date
Amount
Frequency
Declaration Date
Record Date
Payment Date
Aug 13, 2023
C$0.89
Quarterly
―
Aug 14, 2023
Aug 31, 2023
May 11, 2023
C$0.89
Quarterly
May 02, 2023
May 14, 2023
May 31, 2023
Feb 13, 2023
C$0.89
Quarterly
Nov 29, 2022
Feb 14, 2023
Feb 28, 2023
Nov 13, 2022
C$0.86
Quarterly
Nov 01, 2022
Nov 14, 2022
Nov 30, 2022
Aug 11, 2022
C$0.86
Quarterly
Jul 25, 2022
Aug 14, 2022
Aug 31, 2022
May 11, 2022
C$0.86
Quarterly
May 02, 2022
May 12, 2022
May 31, 2022
Feb 13, 2022
C$0.86
Quarterly
Feb 17, 2022
Feb 14, 2022
Feb 28, 2022
ENB Dividend Growth Grade
VIEW RATINGS
ENB:CA
1 Year Dividend Growth Rate (TTM)
3.10%
Dividend Per Share Growth (FWD)
2.99%
Dividend Per Share Growth FY1 – FY3 (CAGR)
1.75%
Dividend Growth Rate 3Y (CAGR)
3.60%
Dividend Growth Rate 5Y (CAGR)
6.07%
Dividend Growth Rate 10Y (CAGR)
18.78%
Revenue Growth (FWD)
0.88%
EPS Diluted Growth (FWD)
1.74%
Free Cash Flow Per Share Growth Rate (FWD)
75.82%
EBITDA Growth (FWD)
5.38%
ENB: Overview, Price and Chart
Enbridge is responsible for transporting a quarter of the oil produced in North America through its extensive pipeline system. The company also transports one-fifth of the natural gas used in the United States.
Enbridge is often part of the best dividend stocks in Canada. And for a good reason! Despite a high dividend rate and sometimes bad economic conditions, the company has never reduced its dividends and continues to increase them.
Dividends are the portion of a company’s profits that is distributed to its shareholders. These payments represent a return on the investment made by shareholders in the company. Dividends can be in the form of cash, additional shares of stock, or other assets, and are typically paid out regularly, such as on a quarterly basis. They serve as a way for companies to reward their shareholders for their ownership, and for investors, dividends can provide a steady stream of income or a reinvestment option for long-term growth.
Types of dividends in the Canadian market
In the Canadian market, several types of dividends are prevalent:
Cash Dividends: These are the most common, involving direct cash payments to shareholders. They’re usually paid out on a regular schedule, such as quarterly, and provide shareholders with immediate income.
Stock Dividends: Also known as bonus shares, companies issue additional shares to shareholders instead of cash. This type of dividend doesn’t provide immediate income but increases the shareholder’s ownership stake in the company.
Dividend Reinvestment Plans (DRIPs): These allow shareholders to reinvest their dividends to purchase more shares, often at a discounted price, enabling compounded growth.
Special Dividends: Occasional one-time payments outside the regular dividend schedule, typically when a company experiences exceptional profits.
Preferred Dividends: Typically paid to preferred shareholders, these dividends take precedence over common stock dividends and are usually fixed.
Eligible and Non-Eligible Dividends: Canada’s tax system differentiates between these two types, affecting the tax rates shareholders pay on the dividends received.
Understanding these dividend types is essential for Canadian investors to make informed decisions aligning with their financial goals and tax considerations.
BMO All-in-One ETF – Diversification and Convenience
All-in-One ETFs, also known as asset allocation or balanced ETFs, were created to offer investors a simplified and convenient way to achieve diversified portfolios. Several reasons make these types of ETFs attractive to investors:
Diversification: All-in-One ETFs typically hold a mix of different asset classes such as stocks, bonds, and sometimes even other assets like real estate or commodities. This diversification helps spread risk and reduces the impact of poor performance in any single asset.
Ease of Use: These ETFs are designed to be easy for investors to understand and use. Instead of selecting and managing multiple individual ETFs, investors can purchase a single All-in-One ETF that already contains a well-balanced mix of assets.
Simplicity: Especially for novice investors, All-in-One ETFs simplify the investment process. There’s no need to worry about rebalancing or adjusting the portfolio as market conditions change since the fund’s management takes care of this.
Cost-Effectiveness: These ETFs can be cost-effective compared to purchasing multiple individual ETFs or mutual funds. The fees for All-in-One ETFs are often lower than the combined fees of managing a similar diversified portfolio with separate funds.
Time-Saving: For investors who don’t have the time or expertise to actively manage a complex portfolio, All-in-One ETFs provide a “set it and forget it” approach. This can be particularly beneficial for individuals with busy schedules or those who prefer a hands-off investment strategy.
Targeted Goals: Some All-in-One ETFs are designed for specific goals, such as retirement, saving for college, or generating income. This makes it easier for investors to align their portfolio with their financial objectives.
Accessibility: All-in-One ETFs are available on major stock exchanges, making them easily accessible to a wide range of investors through their brokerage accounts.
Overall, the introduction of All-in-One ETFs provides investors with a straightforward and efficient way to achieve a diversified portfolio, align with their risk tolerance, and work towards their investment goals without the complexity of managing multiple individual investments.
How to choose the best All in one BMO ETF portfolio?
The first crucial step is assessing your risk profile, a pivotal factor in crafting the best portfolio. This profile hinges on your response to two fundamental questions:
Time Horizon: Are you planning for the long haul or aiming for short-term gains?
Risk Tolerance: Every ETF carries inherent fluctuations in value. What level of percentage variation can you comfortably handle?
To facilitate this assessment, an online questionnaire is available through Vanguard at the following link.
Based on your answers, the tool will propose the best allocation among stocks, bonds and short-term reserves.
Conservative portfolio
Fixed income will dominate the portfolio at 60% or more (with the exception of Horizons’). Meaning your investments will be mostly in Bonds. Bonds are much safer than stocks but they don’t usually offer much return. This portfolio is perfect for some one whose financial objective is short term or who is risk averse. Your portfolio will still have between 20-40% exposure to stocks which allows for some modest growth with a moderate risk overall.
Balanced profile
A balanced portfolio is an investment that combines stocks and bonds. In general, 60% will be invested in the stock market (. While the remainder (40%) will be invested in fixed income investments. This portfolio seeks to combine both growth potential by holding stocks and the safety associated with holding bonds.
Growth portfolio
A growth fund is a diversified portfolio of stocks that has capital appreciation as its primary goal. This is ideal for investors who have a long term objective such as building a retirement fund. The fund will invest at least 80% in Stocks. Generally for these type of funds, providing a dividend income is a secondary objective.
BMO All-in-One ETF
BMO offers three all-in-one ETFs. The breakdown for each portfolio is diversified and covers several types of assets (US, Canadian, Developed and Emerging Markets Equities). The fixed income offering is diversified and covers both the North American and global bond markets.
For the equities breakdown, exposure to the US market is made with 3 funds (mainly the BMO S&P 500 INDEX ETF, BMO S&P US MID CAP INDEX ETF and BMO S&P US SMALL CAP INDEX ETF).
For the bond component, iShares uses three funds that cover the Canadian, American and global markets.
A Registered Retirement Savings Plan (RRSP) is a retirement savings and investing vehicle for employees and the self-employed in Canada. Pre-tax money is placed into an RRSP and grows tax-free until withdrawal, at which time it is taxed at the marginal rate.
In other words, it is a way the Canadian Government encourages you to save by offering the option to lower your taxable income by the amount you contribute.
Mike has a taxable income of 90K. If he contributes to his RRSP 15K, then he will reduce his taxable income and thus his taxes. The governement will not tax the 15K (it’s basically sheletered from Tax because it’s in an RRSP).
The intent of this incentive is that you will save that money for your retirement.
Key assumptions here: You income in your retirement is lower than now. Meaning, when you will withdraw money at your retirement you will benefit by paying a lower taxes. This is probably true for most of us.
Pro:
Can be really a powerful tool to reduce your taxable income and save money for retirement. The money you save can be invested for instance in a TFSA or contributed back in your RRSP if you still have room.
Cons:
If you contribute to your RRSP and then needed the money before your retirement, the whole benefit of an RRSP is basically wiped out. This is because not only you will taxes on the amount withdrawn but also any income you made (dividend or capital gains) is also taxable.
Questions and Answers
How to open an RRSP account
You set up a RRSP through a financial institution such as a bank, credit union, trust or insurance company. Your financial institution will advise you on the types of RRSP and the investments they can contain.
What if I withraw from my RRSP to participate in the: Home Buyers’ Plan & Lifelong Learning Plan withdrawals
Under specific circumstances, you can withdraw funds from your RRSP and your RRSP issuer will not withhold tax.
When you withdraw funds from your RRSPs under either of these plans, do not include them as income on your Income Tax and Benefit Return.
What’s the maximum I can contribute
Your RRSP contribution limit for 2020 is 18% of earned income you reported on your tax return in the previous year, up to a maximum of 27,230. For 2021, the dollar limit is $27,830.
Deadline to contribute to an RRSP
March 1, 2021March 1, 2021 is the deadline for contributing to an RRSP for the 2020 tax year. December 31 of the year you turn 71 years of age is the last day you can contribute to your own RRSP. For more information, see RRSP options when you turn 71.
What are the federal tax brackets in Canada for 2020?
