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In the world of investing, the pursuit of long-term growth is a common objective for many individuals. Whether you’re a seasoned investor or just starting to build your investment portfolio, identifying the right vehicles to achieve sustainable growth is crucial. Exchange-Traded Funds (ETFs) have emerged as popular investment options due to their diversification, cost-effectiveness, and ease of access. With an ever-expanding range of ETFs available, it can be overwhelming to choose the Best ETF for Long Term Growth.

In this post, we will dive into the realm of ETFs and explore some of the best options specifically tailored for long-term growth. We will examine various factors such as historical performance, underlying assets, expense ratios, and overall investment strategies. By the end of this guide, you will gain valuable insights into the top-performing ETFs that have the potential to deliver sustained growth over an extended period.

Best Canadian Dividend ETFs

Pros of Owning a Canadian Dividend ETF

Income Generation: Canadian Dividend ETFs invest in Canadian companies that pay dividends, providing a regular stream of income for investors. This can be especially appealing for investors who are retired or seeking income from their investments.

Diversification: Canadian Dividend ETFs invest in a broad range of companies, which can help investors diversify their portfolio. By spreading their investments across different sectors and companies, investors can reduce the risk of having all their eggs in one basket.

Lower Costs: ETFs typically have lower fees than actively managed mutual funds, making them an affordable option for investors who want to keep costs low.

Tax Efficiency: Canadian Dividend ETFs can be tax-efficient, as Canadian dividends are eligible for the dividend tax credit, which can reduce the amount of tax paid on the dividend income.

Top Canadian Dividend ETFs

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Best ETF for Long Term Growth (Canadian Dividend)

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Best US Dividend ETFs

Pros of Owning a Canadian Dividend ETF

Income Generation: Canadian Dividend ETFs that invest in US stocks can provide a regular stream of income for investors from US-based companies.

Diversification: Investing in a Canadian Dividend ETF that includes US stocks can help investors diversify their portfolio beyond Canadian companies and reduce overall risk.

Exposure to US Market: A Canadian Dividend ETF that invests in US stocks provides exposure to the US market, which is the largest and most diverse stock market in the world. This can provide investors with access to some of the largest and most successful companies in the world.

Top US Dividend ETFs in Canada

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Best US Dividend ETFs in Canada (2023)!

Best Growth ETFs (Canadian Index)

Pros of Owning a Canadian Index ETF:

Diversification: Canadian Index ETFs invest in a broad range of companies across multiple sectors, which can help investors diversify their portfolio and reduce overall risk.

Low Fees: Canadian Index ETFs typically have lower fees compared to actively managed mutual funds, which can increase overall returns for investors.

Passive Investing: Index ETFs track a specific index, such as the S&P/TSX Composite Index, and do not require active management, which can be less time-consuming for investors.

Market Exposure: A Canadian Index ETF provides exposure to the Canadian market, which can help investors capture the overall performance of the Canadian economy.

Top Canadian Index ETFs (Growth)

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Best ETFs in Canada 2023 (Canadian Index)

Best Growth ETFs (US index: S&P 500)

Pros of Owning an S&P 500 Index ETF

Exposure to US Market: The S&P 500 Index ETF provides exposure to the US market, which is the largest and most diverse stock market in the world. This can provide investors with access to some of the largest and most successful companies in the world.

Diversification: Investing in an S&P 500 Index ETF can help investors diversify their portfolio beyond Canadian companies and reduce overall risk.

Low Fees: S&P 500 Index ETFs typically have lower fees compared to actively managed mutual funds, which can increase overall returns for investors.

Passive Investing: Index ETFs track a specific index, such as the S&P 500 Index, and do not require active management, which can be less time-consuming for investors.

Top Index ETFs (US S&P500 Index)

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Top All In One ETFs (Growth)

Pros of Owning an All-in-One ETF:

Simplified Investing: An all-in-one ETF provides investors with a single investment that contains a diversified portfolio of stocks and bonds, which can simplify the investing process and save time.

Diversification: All-in-one ETFs invest in a broad range of companies across multiple sectors and geographic regions, which can help investors diversify their portfolio and reduce overall risk.

Low Fees: All-in-one ETFs typically have lower fees compared to actively managed mutual funds, which can increase overall returns for investors.

Passive Investing: All-in-one ETFs track a specific index and do not require active management, which can be less time-consuming for investors.

Top All In One ETFs

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Best All-In-One ETF Canada 2023

Currency risk coverage (Hedged vs Unhedged)

When the manager has to replicate a U.S. index such as the S.P. 500 or the Nasdaq 100. It must acquire these assets in U.S. dollars. So, on a fairly regular basis, the fund has to convert the funds available in Canadian dollars into U.S. dollars. These conversions may be beneficial or have a negative impact depending if the Canadian dollar has appreciated or depreciated.

Many investors want to reduce this risk. To meet their needs, the majority of ETFs that reproduce a U.S. index offer a “hedged” version of their funds and sometimes another version that is traded only in U.S. dollars. Coverage acts as a kind of insurance. See the scenarios presented below:

	Scenario 1: Value of Canadian $ appreciated	Scenario 2: Value of Canadian $ depreciated
Non hedged ETF	Index return Minus foreign exchange loss	Index return Plus foreign exchange gains
Hedged ETF	Index return	Index return
US $ ETF	Index Return The investor chooses when to convert	Index Return The investor chooses when to convert

Disclaimer

The data on this website is for your information only. It does not constitute investment advice, or advice on tax or legal matters. Any information provided on this website does not constitute investment advice or investment recommendation nor does it constitute an offer to buy or sell or a solicitation of an offer to buy or sell shares or units in any of the investment funds or other financial instruments described on this website. Should you have any doubts about the meaning of the information provided herein, please contact your financial advisor or any other independent professional ad

The recent stock market correction clearly represents an opportunity to acquire new shares of the highest dividend paying stocks. A good starting point are dividend stocks with a solid track record. In this post, we will be looking at 4 dividend stocks that are near their 52 weeks lows. For each stock, we will present the growth prospects and the risks. In addition, we will include growth statistics and other relevant ratios. This list is just a starting point for further research and not a buy recommendation.

Full list of ‘Dividend Kings’ stocks by sector – 2023

QYLD ETF Review: Global X Nasdaq-100 Covered Call ETF

10 Best Covered Call ETF Canada – High dividend yield

Selection criteria

Minimum of 10 years of consecutive dividend payment and growth;
High dividend safety (low payout ratio and strong balance sheet;
An attractive dividend growth rate over the past five years;
Stock trading close to its 52 weeks low.
Large cap (Minimum 10B)

Review of XEI – Ishares S&P TSX Comp High Div Index ETF

Top 10 Best Growth ETF in Canada!

Highest Dividend paying Stocks near their 52 weeks low

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Market Cap and Dividend yield

Symbol	Market Cap	Div Yield
LHX	35.28B	2.42%
PKG	11.50B	3.87%
MAA	17.64B	3.60%
CINF	16.41B	2.70%

As of May 23rd, 2023 (Source: SeekingAlpha), – Highest Dividend paying Stocks

Ex-Dividend date and Pay Out Ratio

Symbol	Ex-Div Date	Payout Date	Payout Ratio
LHX	6/1/2023	6/16/2023	35.66%
PKG	6/14/2023	7/14/2023	47.13%
MAA	7/13/2023	7/31/2023	87.50%
CINF	6/15/2023	7/14/2023	79.66%

As of May 23rd, 2023 (Source: SeekingAlpha), – Highest Dividend paying Stocks

Dividend growth metrics

Symbol	Div Growth 5Y	Years of Growth	Consecutive Years
LHX	14.97%	21 Years	33 Years
PKG	14.69%	12 Years	18 Years
MAA	8.13%	12 Years	24 Years
CINF	6.79%	62 Years	62 Years

As of May 23rd, 2023 (Source: SeekingAlpha), – Highest Dividend paying Stocks

LHX L3Harris Technologies, Inc.

L3Harris Technologies, Inc. is an aerospace and defense technology company providing mission-critical solutions for global government and commercial customers. Its offerings include multi-mission intelligence systems, communication systems, maritime and autonomous solutions, electro-optical and infrared solutions, space payloads, electronic warfare systems, tactical radios, and public safety equipment. The company was founded in 1895.

+ L3Harris, a defense contractor, presents an opportunity for investors seeking potentially undervalued stocks. Despite a bearish stock chart, the company has displayed strong revenue growth.

+ The recent acquisition of Aerojet Rocketdyne is expected to have a meaningful impact on future results.

+ The company benefits from a solid flow of new orders supported by an advanced product portfolio, with resolved supply chain issues.

+ L3Harris has shown steady revenue and EPS growth over the past decade.

+ The company’s reputation for dividend growth offers potential income stability for long-term investors.

+ L3Harris is well-positioned to potentially benefit from increased global defense spending.

+ The company’s valuation appears reasonable, although investors should be mindful of potential risks.

+ 21 consecutive years paying and growing their dividends while maintaining a low payout ratio

+ Dividend grew 14.97% in the past 5 years!

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PKG – Packaging Corporation of America

Packaging Corporation of America (NYSE:PKG), established in 1867, is a leading producer of container board products, paper, and packaging materials in the United States. The company operates in three segments: Packaging (the largest division), Paper, and Corporate and Other. With a network of 8 mills, 89 corrugated products plants, and a facility in Hong Kong, they cater to businesses of all sizes, offering a diverse range of corrugated packing materials, including solutions for food and consumer products. Additionally, their paper segment specializes in both commodity and specialty paper products. Packaging Corporation of America is a trusted and long-standing presence in the industry.

+ Strong fundamentals are supported by a strong balance sheet and cash flow statement.

– PKG operates in a highly competitive industry, which may impact its pricing power, margins, and profitability.

– The company’s dependence on key raw materials, such as paper and pulp, exposes it to market fluctuations and supply chain disruptions.

+ 12 consecutive years paying and growing their dividends while maintaining a low payout ratio

+ Dividend grew 14.69% in the past 5 years!

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MAA – Mid-America Apartment Communities, Inc.

Mid-America Apartment Communities owns 101,986 apartment units, including those currently in development, across 16 states and Washington D.C. Their primary markets are:

Mid-America Apartment Communities owns 101,986 apartment units, including those currently in development, across 16 states and Washington D.C. Their primary markets are: the Southeast, Southwest and Mid-Atlantic regions of the United States.

+ strong balance sheet and pays a well-covered and growing dividend.

+ Higher Population growth, Household Formation and Job growth in MAA Markets contributes to the company’s strong financial situation.

+ Higher interest rates benefit MAA by pricing out buyers from single-family homes, increasing demand for their apartment communities.

+ 12 consecutive years paying and growing their dividends while maintaining a low payout ratio.

+ Dividend grew 8.13% in the past 5 years!

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CINF – Cincinnati Financial Corporation

Cincinnati Financial Corporation and its subsidiaries offer property casualty insurance products in the United States. The company operates through five segments: Commercial Lines Insurance, Personal Lines Insurance, Excess and Surplus Lines Insurance, Life Insurance, and Investments.

+ Dividend King stock with 62 consecutive years of dividend growth.

+ As interest rates rose, the stock market declined, which had a significant impact on Cincinnati’s stock portfolio. This downward trend in the stock market led to a noticeable decrease of 21% in total revenues compared to the same period in the previous year. However, it’s important to note that these losses are currently unrealized. When the market regains its strength and the portfolio’s investments appreciate in value, Cincinnati stands to benefit from the rebound, potentially offsetting the previous losses and generating positive returns.

+ Dividend grew 6.79% in the past 5 years!

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Investing in dividend-paying stocks

Regarding dividend investing, investors understand the significance of selecting the right stocks. Those seeking a reliable and growing income stream prioritize stocks with a solid history of increasing dividends annually. This article explores the importance of investing in such dividend stocks and highlights four top picks currently trading near their 52-week lows.

Consistent Income Growth:

Dividend stocks with a consistent track record of increasing dividends provide investors with a relatively safe income stream.

Long-Term Wealth Generation:

Dividend growth stocks have proven to be excellent vehicles for long-term wealth generation. Investors can harness the power of compounding returns by reinvesting dividends or selectively deploying the cash flow into other investments. Over time, this compounding effect significantly boosts overall portfolio returns.

Stability and Resilience:

Companies that consistently increase dividends often exhibit stability and resilience in their business operations. These companies typically possess strong fundamentals, solid financial health, and sustainable growth prospects. Investing in dividend stocks with a solid track record helps investors mitigate risks associated with volatile market conditions.

Signal of Company Health:

Dividend increases year after year serve as positive signals of a company’s confidence in its prospects and financial strength. Consistently raising dividends reflects a company’s commitment to shareholder value, which signifies earnings growth and cash flow stability. Dividend growth becomes a valuable measure of a company’s health and long-term sustainability.

XEF ETF Objective

XEF ETF is an index fund that helps investors get exposure to large and mid-cap companies in developed markets outside of North America. The fund seeks long-term capital growth by replicating the performance of the MSCI EAFE® Investable Market Index, net of expenses.

XEF is unhedged. If you are looking for the hedged version you can invest in XFH. A Canadian dollar hedged fund is an investment fund that seeks to mitigate the impact of currency fluctuations between the Canadian dollar and foreign currencies. When investing in foreign assets, such as stocks or bonds denominated in a currency other than the Canadian dollar, the returns of the investment can be affected by changes in exchange rates.

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What’s the MSCI EAFE Index

The MSCI EAFE Index is a popular stock market index that offers investors exposure to large and mid-cap companies in developed markets outside of North America. Let’s take a closer look at the advantages and weaknesses of this index.

Advantages:

Diversification: The MSCI EAFE Index covers 21 developed markets, which can help investors to reduce the risk of a concentrated portfolio and potentially increase returns.
Global exposure: Investing in the MSCI EAFE Index provides exposure to a diverse range of markets, which can help to mitigate the impact of regional economic downturns.
Strong performers: The index includes some of the world’s largest and most successful companies, which can provide investors with the opportunity to invest in established businesses with a proven track record.

Weaknesses:

Currency risk: Investing in international markets exposes investors to the risk of currency fluctuations, which can affect returns and add an additional layer of risk to the investment.
Geopolitical risk: Political events, such as changes in trade policies or economic sanctions, can affect the performance of the MSCI EAFE Index and create uncertainty for investors.
Limited exposure to emerging markets: The MSCI EAFE Index only includes developed markets, which means that investors may miss out on the potentially higher returns of emerging markets.

In conclusion, the MSCI EAFE Index can be a useful tool for investors looking to diversify their portfolios and gain exposure to developed international markets. However, it is important to carefully consider the risks associated with investing in foreign markets, such as currency fluctuations and geopolitical events, and weigh the potential benefits against these risks.

Full review of ZBK ETF: BMO Equal Weight US Banks Index

Best US Dividend ETFs in Canada (2023)!

XEF Stock Profile

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Updated daily

XEF Stock 52 weeks high and low

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Performance comparison

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XEF Portfolio

Name	Weight (%)
ISHARES CORE MSCI EAFE ETF	3.15
NESTLE SA	1.86
NOVO NORDISK CLASS B	1.43
LVMH	1.43
ASML HOLDING NV	1.33
ASTRAZENECA PLC	1.22
ROCHE HOLDING PAR AG	1.15
SHELL PLC	1.13
NOVARTIS AG	1.12
BHP GROUP LTD	0.83

XEF Geographic allocation

Type	Fund
Japan	22.41
United Kingdom	14.95
France	11.40
Switzerland	9.36
Germany	8.02
Australia	7.78
Netherlands	4.02
Sweden	3.67
Denmark	2.93
Italy	2.63

FNB XEF Objectif

XEF ETF est un fonds indiciel qui aide les investisseurs à obtenir une exposition aux sociétés à grande et moyenne capitalisation des marchés développés à l’extérieur de l’Amérique du Nord. Le fonds vise une croissance du capital à long terme en reproduisant le rendement de l’indice MSCI EAFE® Investable Market Index, déduction faite des frais.

Le XEF n’est pas couvert. Si vous recherchez la version couverte, vous pouvez investir dans XFH. Un fonds de couverture en dollars canadiens est un fonds d’investissement qui cherche à atténuer l’impact des fluctuations des devises entre le dollar canadien et les devises étrangères. Lorsque vous investissez dans des actifs étrangers, tels que des actions ou des obligations libellées dans une devise autre que le dollar canadien, les rendements de l’investissement peuvent être affectés par les variations des taux de change.

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Que représente l’incide MSCI EAFE

L’indice MSCI EAEO est un indice boursier populaire qui offre aux investisseurs une exposition aux sociétés à grande et moyenne capitalisation des marchés développés à l’extérieur de l’Amérique du Nord. Examinons de plus près les avantages et les faiblesses de cet indice.

Avantages :

Diversification : L’indice MSCI EAEO couvre 21 marchés développés, ce qui peut aider les investisseurs à réduire le risque d’un portefeuille concentré et potentiellement augmenter les rendements.

Exposition mondiale : Investir dans l’indice MSCI EAEO offre une exposition à un large éventail de marchés, ce qui peut aider à atténuer l’impact des ralentissements économiques régionaux.

Solides performances : L’indice comprend certaines des sociétés les plus importantes et les plus prospères au monde, ce qui peut offrir aux investisseurs la possibilité d’investir dans des entreprises établies ayant fait leurs preuves.

Faiblesses:

Risque de change : Investir sur les marchés internationaux expose les investisseurs au risque de fluctuations des devises, ce qui peut affecter les rendements et ajouter une couche de risque supplémentaire à l’investissement.

Risque géopolitique : Des événements politiques, tels que des changements dans les politiques commerciales ou des sanctions économiques, peuvent affecter le rendement de l’indice MSCI EAEO et créer de l’incertitude pour les investisseurs.

Exposition limitée aux marchés émergents : L’indice MSCI EAEO n’inclut que les marchés développés, ce qui signifie que les investisseurs peuvent passer à côté des rendements potentiellement plus élevés des marchés émergents.

En conclusion, l’indice MSCI EAEO peut être un outil utile pour les investisseurs qui cherchent à diversifier leurs portefeuilles et à s’exposer aux marchés internationaux développés. Cependant, il est important d’examiner attentivement les risques associés à l’investissement sur les marchés étrangers, tels que les fluctuations des devises et les événements géopolitiques, et de peser les avantages potentiels par rapport à ces risques.

Full review of ZBK ETF: BMO Equal Weight US Banks Index

Best US Dividend ETFs in Canada (2023)!

XEF Cours sur les marchés boursiers

Updated daily

XEF Cours plus haut et plus bas 52 dernières semaines

Performance historique

XEF Portfeuille

Name	Weight (%)
ISHARES CORE MSCI EAFE ETF	3.15
NESTLE SA	1.86
NOVO NORDISK CLASS B	1.43
LVMH	1.43
ASML HOLDING NV	1.33
ASTRAZENECA PLC	1.22
ROCHE HOLDING PAR AG	1.15
SHELL PLC	1.13
NOVARTIS AG	1.12
BHP GROUP LTD	0.83

XEF Allocation par pays

Type	Fund
Japan	22.41
United Kingdom	14.95
France	11.40
Switzerland	9.36
Germany	8.02
Australia	7.78
Netherlands	4.02
Sweden	3.67
Denmark	2.93
Italy	2.63

In this article, we will present the best canadian dividend stocks 2023. We focused in our analysis on large caps that have increased significantly their dividends in the past 5 years. In addition, for each company selected, the dividend yield and the dividend payout ratio and other pertinent ratios will be provided.

A quick review of the methodology:

Minimum dividend yield of 2.5%
Companies with the highest incease in their paid dividends in the past 5 years (Minimum = 10%)
Large Cap only with minimum of 10B market cap

Name	5Y Div%
POW-PR-E.TO Power Corp Part Pr	42.63%
ABX.TO Barrick Gold Corp	35.10%
AEM.TO Agnico Eagle Mines Ltd	31.21%
QSP-UN.TO Restaurant Brands Intl Ltd Partnership	27.88%
QSR.TO Restaurant Brands International Inc	27.88%
CCL-A.TO Ccl Industries Inc Cl A	16.31%
CNQ.TO Canadian Natural Resources Ltd.	16.27%
CCL-B.TO Ccl Industries Inc Cl B NV	16.00%
CTC.TO and CTC-A.TO Canadian Tire Corp Ltd	15.37%

Source: Barchart – 5Y Div%: 5 years dividend growth

Investing in dividend-paying stocks

Investing in dividend paying stocks is a strategy that appeals to young and old investors. Here is a quick reminder of the main concepts to keep in mind before applying this strategy:

Investment horizon: 5 years or more minimum. The strategy of investing in dividend paying stocks is not suitable for an investor with a short term horizon (less than 5 years).

Objective: The strategy can help you build passive income or further grow your capital by reinvesting the dividends received.

Risk Tolerance: Medium (provided you restrict yourself to selecting quality securities and having a diversified portfolio across several sectors).

What’s a good 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%.

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.

Why stocks price decrease after dividend payments?

In the short term, the payment of dividends constitutes a drain on the company’s financial resources. At the time they are distributed, the share price will decrease accordingly in normal trading conditions. This is why some companies allow shareholders to reinvest their dividend by acquiring more shares.

In the long term, the relationship between dividend and share price is more complex.

On the one hand, the payment of dividends attracts new shareholders and retains the current ones. This has a positive effect on the share price overall. But on the other hand, an excessive levy on the resources of the company can hinder he compay’s growth prospects.

POW-PE.TO Power Corp Part Pr

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ABX.TO Barrick Gold Corp

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AEM.TO Agnico Eagle Mines Ltd

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QSP-UN.TO Restaurant Brands Intl Ltd Partnership

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QSR.TO Restaurant Brands International Inc

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[stock_market_widget type=”card-companies” template=”basic” assets=”QSR.TO” fields=”logo_name,symbol,description,industry,sector” api=”yf”]

CCL-A.TO and CCL-B.TO Ccl Industries Inc Cl A

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CNQ.TO Canadian Natural Resources Ltd.

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CTC.TO and CTC-A.TO Canadian Tire Corp Ltd

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In this post, we will be going over the Best Exchange Traded Funds (ETF) in Canada. First, we will discuss the benefits of investing in ETFs. Then, we will be presenting the best ETFs by category:

Why should I consider buying an ETF?

The quick answer is diversification. Assume you have 5,000 $, you can’t buy a lot of stocks with that amount (may be 4 or 5). Also, you will incur fees to trade them. Your portfolio will be certainly too dependent on a performance of 1, 2 …or even 5 sectors that your stocks are in. If you buy with that 5,000 $ an ETF that tracks let’s say the TSX/S&P 60, it basically means you just bought share in 60 of the largest companies that are trading in the stock exchange in Canada. It’s clearly a powerful tool to diversify your portfolio with a small amount of money.

ETFs offer a wide variety of choices, you can basically decide the allocation yourself based on your risk tolerance or rely on Robo advisers services (such as Questrade or Wealth simple).

What are the risks?

An ETF trades like a stock. So it’s volatile. You have to accept the fact the value can go up or down like any stock. There is no question that an ETF covering let’s say the TSX is for most of the time less volatile than holding 1 stock. Because the TSX ETF is a bundle of over 100 stocks not just one. It’s diversified by nature so it’s less volatile.

Best Canadian Dividend ETFs

VDY – FTSE Canadian
High Dividend
Yield Index

XDV – iShares
Canadian Select
Dividend Index

FIE – Ishares CDN
Financial Monthly
Income

Top 3 Best Canadian Dividend ETF in Canada

In my opinion, XDV iShares Canadian Select Dividend Indx and VDY FTSE Canadian High Dividend Yield Indx are the best Canadian diversified dividend ETFs. They combine low volatility, attractive returns, and good performance. VDY has a Morningstar Rating of 5 Stars and a low MER 0.21%!

Canadian Banks are known for their financial strength. Their Dividends are attractive and stable. FIE Ishares CDN Fin Mthly Income is a great choices. If you want exposure to the Canadian banking industry focusing on earning dividends, this ETF will undoubtedly answer your goals.

For a full comparison of the most popular Canadian dividend ETFs in Canada, please visit: Best Canadian dividend ETF 2023- Top 16

VDY – Vanguard FTSE Canadian High Dividend Yield Index ETF

FTSE Canadian High Dividend Yield Index ETF tracks the performance of the FTSE Canada High Dividend Yield Index, which consists of Canadian stocks having a high dividend yield. Due to the nature of the Canadian market, this fund has large portion of its investment portfolio in Energy and Financials.

VDY holdings

Name	Weight
Royal Bank of Canada	14.1%
The Toronto-Dominion Bank	12.5%
Enbridge Inc	7.9%
Bank of Nova Scotia	7.7%
Bank of Montreal	6.5%
Canadian Imperial Bank of Commerce	4.9%
TC Energy Corp	4.7%
BCE Inc	4.4%
Canadian Natural Resources Ltd	4.1%
Manulife Financial Corp	3.7%

Please consult issuers’ website for up-to-date data

XDV – iShares Canadian Select Dividend Index ETF

XDV seeks long-term capital growth by replicating the performance of the Dow Jones Canada Select Dividend Index, net of expenses.

Name	Weight
Canadian Imperial Bank of Commerce	8.5%
Canadian Tire Corp Ltd Class A	6.8%
Bank of Montreal	6.3%
Labrador Iron Ore Royalty Corp	6.2%
Royal Bank of Canada	6.0%
BCE Inc	4.7%
TC Energy Corp	4.7%
Bank of Nova Scotia	4.7%
The Toronto-Dominion Bank	4.3%
National Bank of Canada	3.9%

Please consult issuers’ website for up-to-date data

FIE – Ishares CDN Fin Mthly Income

Ishares CDN Fin Monthly Income seeks to maximize total return and to provide a stable stream of monthly cash distributions. FIE has a high exposure to the financial sector.

FIE holdings

Name	Weight
iShares S&P/TSX Cdn Prefr Shr ETF Comm	20.7%
iShares Core Canadian Corporate Bd ETF	10.0%
Canadian Imperial Bank of Commerce	9.1%
Royal Bank of Canada	8.5%
The Toronto-Dominion Bank	7.0%
Sun Life Financial Inc	6.5%
Manulife Financial Corp	6.5%
National Bank of Canada	6.5%
Power Corporation of Canada	6.0%

Please consult issuers’ website for up-to-date data

Best US Dividend ETFs

VGH – Vanguard US
Dividend Appreciation
CAD Hdg

ZWH – BMO US High
Dividend Covered Call

Top 2 Best Canadian Dividend ETF in Canada

Link to full post: Best US Dividend ETFs in Canada (2023)!

VGG – Vanguard US Div Appr and VGH – U.S. Dividend Appreciation Index ETF (CAD-hedged)

VGG seeks to track the performance of the NASDAQ US Dividend Achievers Select Index. The latter is comprised of a select group of securities with at least ten consecutive years of increasing annual regular dividend payments.

VGH is hedged: Meaning the manager will seek actively to reduce currency risk. VGG is not hedged against currency fluctuation risk.

Index funds can be great especially from an MER perspective. VGG and VGH (hedged version) charge 0.30% MER which the lowest among the ETFs selected in our list. They offer an exposure to large number of established US corporations, mostly Bluechips such as Microsoft, Walmart…etc.

The choice between VGG and VGH depends solely on the investor take on currency. If the Canadian dollar appreciates then a hedged ETF will be a better choice. On the other hand, if the US dollar appreciates, then the non hedged ETF will have a better performance.

VGG Holding details

Company Name	Allocation
Microsoft Corp	4.5%
JPMorgan Chase & Co	3.9%
Johnson & Johnson	3.8%
UnitedHealth Group Inc	3.3%
Visa Inc Class A	3.2%
The Home Depot Inc	3.1%

Please consult issuers’ website for up-to-date data

VGG Geographic allocation

Country	Fund
USA	99.3%

Please consult issuers’ website for up-to-date data

VGG Sector allocation

Sector	% Allocation
Financial Services	17.0%
Industrials	16.9%
Healthcare	15.5%

Please consult issuers’ website for up-to-date data

ZWH – BMO US High Dividend Covered Call ETF

ZWH has been designed to provide exposure to a dividend focused portfolio, while earning call option premiums. The underlying portfolio is yield-weighted and broadly diversified across sectors. The Fund utilizes a rules-based methodology that considers the following criteria:

dividend growth rate,

yield,

payout ratio,

liquidity.

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.

ZWH Holding details

Weight (%)	Name
4.48%	BANK OF AMERICA CORP
4.29%	CISCO SYSTEMS INC/DELAWARE
4.21%	HOME DEPOT INC/THE
4.12%	JPMORGAN CHASE & CO
4.09%	MICROSOFT CORP
3.92%	INTERNATIONAL BUSINESS MACHINES CORP
3.85%	CHEVRON CORP
3.83%	ABBVIE INC
3.71%	AT&T INC
3.65%	COCA-COLA CO/THE

Please consult issuers’ website for the most recent data

ZWH Geographic allocation

Country	Fund
USA	100.0%

ZWH Sector allocation

Sector	Fund
Information Technology	22.52%
Industrials	8.25%
Consumer Discretionary	9.60%
Health Care	12.53%
Financials	16.30%
Materials	4.19%
Communication	9.54%
Consumer Staples	7.25%
Energy	3.92%
Utilities	3.77%
Real estate	2.12%

Please consult issuers’ website for the most recent data

Best Growth ETF from BMO

ZQQ – BMO Nasdaq 100
Hedged To CAD Index

ZUQ – BMO MSCI USA
High Quality Index

Top 2 Best Growth ETF from BMO

Link to full post: Best ETF Canada: Top 7 offered by BMO – 2023

ZQQ – BMO Nasdaq 100 Hedged To CAD Index ETF

ZQQ Strategy

BMO Nasdaq 100 Equity Hedged to CAD seeks to replicate, to the extent possible, the performance of an index of securities of companies listed on the NASDAQ, net of expenses. ZQQ ranks first in our ranking of the best BMO ETFs to hold for long term.

The ZQQ is hedged for currency risk.

The Nasdaq-100 is one of the world’s leading large-cap growth indices. It includes 100 of the largest national and international non-financial companies listed on the Nasdaq by market capitalization.

This index is dominated by companies in the technology sector.

47.93% Technology

19.77% Communications Services

18.25% Consumer Discretionary

ZQQ Holdings

Weight (%)	Name
10,52%	APPLE INC
9,47%	MICROSOFT CORP
8,17%	AMAZON.COM INC
3,98%	ALPHABET INC
3,97%	FACEBOOK INC
3,73%	TESLA INC
3,56%	ALPHABET INC
3,08%	NVIDIA CORP
2,33%	PAYPAL HOLDINGS INC
2,00%	COMCAST CORP

Please consult issuers’ website for up-to-date data

ZUQ – BMO MSCI USA High Quality Index

ZUQ strategy and sector allocation

The BMO MSCI USA High Quality seeks to replicate, to the extent possible, the performance of the MSCI USA Quality Index, net of expenses. The index is 100% invested in the United States.

The fund selects the securities according to the criteria below:

• Large or medium-sized business;

• High return on equity;

• Sustained growth in revenues;

• Low debt ratio

ZUQ Sector allocation – Top 3

45.83% Technology

20.49% Healthcare

10.80% Communication service

ZUQ Holdings

Weight (%)	Name
5,11%	FACEBOOK INC
5,00%	MICROSOFT CORP
4,84%	APPLE INC
4,50%	JOHNSON & JOHNSON
4,01%	MASTERCARD INC
3,87%	NVIDIA CORP
3,80%	VISA INC
3,74%	UNITEDHEALTH GROUP INC
2,71%	PAYPAL HOLDINGS INC
2,71%	ADOBE INC

Please consult issuers’ website for up-to-date data

Best REITS ETF in Canada

ZRE – BMO Equal
Weight Reits
Index

RIT – CI First
Asset Canadian
REIT

Top 2 Best REITS ETF in Canada

Link to full post: Top 5 Best Canadian REITs ETF in 2023

RIT – CI First Asset Canadian REIT ETF

RIT is an actively managed portfolio comprised primarily of securities of Canadian real estate investment trusts, real estate operating corporations and entities involved in real estate related services. Up to 30% of the Fund’s assets may be invested in foreign securities.

RIT ETF Distribution

RIT	Total	Cash
21-May	$0.0675	$0.0675
26-Apr	$0.0675	$0.0675
25-Mar	$0.0675	$0.0675
22-Feb	$0.0675	$0.0675
25-Jan	$0.06750	$0.0675

Sector breakdown

Sector	Weight %
Residential	30.73
Industrials	21.07
Retail	18.64

RIT ETF Holdings

Name	%
CANADIAN APARTMENT PPTYS REIT	4.96
TRICON RESIDENTIAL INC	4.88
DREAM INDUSTRIAL REIT	4.87
SUMMIT INDUSTRIAL INCOME REIT	4.70
INTERRENT REIT	4.68
GRANITE REIT	4.62
KILLAM APT REAL ESTATE INVT TR	4.21
MINTO APARTMENT REIT	4.06
CHARTWELL RETIREMENT RESIDENCE	4.01
CHOICE PROPERTIES REIT	3.74

ZRE – BMO Equal Weight Reits Index ETF

ZRE is an index fund that tracks the Solactive Equal Weight Canada REIT Index. It invests in Canadian securities that fall within the Real Estate Investment Trust sector. Each security in the Index is allocated a fixed weight rather than a market capitalization weight. This is the largest REITS ETF by asset under management with 1.3 Billion.

Sector allocation

Sector	Weight %
Retail	27.87%
Residential	21.94%
Industrial	18.55%
Diversified	13.63%
Office	8.90%

ZRE ETF Holdings

Weight (%)	Name
4.98%	WPT INDUSTRIAL REAL ESTATE INVESTMENT TRUST
4.96%	SUMMIT INDUSTRIAL INCOME REIT
4.76%	CROMBIE REAL ESTATE INVESTMENT TRUST
4.63%	SMARTCENTRES REAL ESTATE INVESTMENT TRUST
4.63%	RIOCAN REAL ESTATE INVESTMENT TRUST
4.61%	INTERRENT REAL ESTATE INVESTMENT TRUST
4.61%	CHARTWELL RETIREMENT RESIDENCES
4.59%	MINTO APARTMENT REAL ESTATE INVESTMENT TRUST
4.58%	CHOICE PROPERTIES REAL ESTATE INVESTMENT TRUST
4.57%	H&R REAL ESTATE INVESTMENT TRUST

Best Covered Call ETFs in Canada

ZWB – BMO Covered
Call Canadian Banks

ZWC –BMO CDN High
Div Covered Call

Link to full post: 8 Best Covered Call ETF Canada – High dividend yield

ZWB – BMO Covered Call Canadian Banks

The ZWB aims to provide exposure to a portfolio of dividend-paying securities (Canadian Banks), while collecting premiums related to call options. The portfolio is chosen on the basis of the criteria below:

• dividend growth rate,

• yield

• payout ratio and liquidity.

ZWB holdings

Name	Weight
BMO Equal Weight Banks ETF	27.2%
Bank of Montreal	12.9%
Canadian Imperial Bank of Commerce	12.7%
Royal Bank of Canada	12.1%
National Bank of Canada	11.9%
The Toronto-Dominion Bank	11.9%
Bank of Nova Scotia	11.4%

Please visit issuers’ website for up-to-date figures

ZWC –BMO CDN High Div Covered Call

The BMO Canadian High Dividend Covered Call ETF (ZWC) has been designed to provide exposure to a dividend focused portfolio, while earning call option premiums. The underlying portfolio is yield-weighted and broadly diversified across sectors.

The fund selection methodology uses 4 factors: – Liquidity; – Dividend growth rate; – Yield and payout ratio.

ZWC is an excellent option for conservative investors looking for a steady income and low volatility. It’s tax-efficient because the dividends are all coming from Canadian companies. The financial sector and Energy represents 53% of the total overall sector allocation.

ZWC ETF Holdings

Company Name	Allocation
Canadian National Railway Co	5.4%
BCE Inc	5.2%
TELUS Corp	5.1%
Enbridge Inc	5.0%
Royal Bank of Canada	5.0%
Canadian Imperial Bank of Commerce	4.9%
Bank of Nova Scotia	4.7%
The Toronto-Dominion Bank	4.6%
Manulife Financial Corp	4.3%

As of October 29th Source: TD Market research

Best Growth ETFs in Canada in terms of performance

HXE – Horizons S&P
TSX Capped
Energy Index

XEG – Ishares S&P TSX
Capped Energy Idx

ZEO -BMO S&P TSX
Eql Weight Oil Gas Index

Top 3 Best Growth ETF in terms of performance

Link to full post: Top 10 Best Growth ETF so far in 2023 in Canada!

XEG – Ishares S&P TSX Capped Energy Index ETF XEG

Funds objective: Seeks long-term capital growth by replicating the performance of the S&P/TSX Capped Energy Index, net of expenses.

In terms of holdings, Canadian Natural Resources and Suncor Energy make up almost 50% of the holdings. This high exposure reduces the benefit of diversification that’s usually desired by investors when buying an ETF.

The management fee is 0.55%.

Name	Weight (%)
SUNCOR ENERGY INC	26.21
CANADIAN NATURAL RESOURCES LTD	23.48
CENOVUS ENERGY INC	13.50
TOURMALINE OIL CORP	8.97
IMPERIAL OIL LTD	6.47
ARC RESOURCES LTD	5.73
WHITECAP RESOURCES INC	2.40
MEG ENERGY CORP	2.29
ENERPLUS CORP	2.25
CRESCENT POINT ENERGY CORP	2.23

ZEO – BMO S&P TSX Eql Weight Oil Gas Index

The BMO Equal Weight Oil & Gas Index ETF (ZEO) has been designed to replicate, to the extent possible, the performance of the Solactive Equal Weight Canada Oil & Gas 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.

Rating: 3 out of 5.

Weight (%)	Name
14.35%	CENOVUS ENERGY INC
13.34%	SUNCOR ENERGY INC
12.13%	IMPERIAL OIL LTD
11.82%	CANADIAN NATURAL RESOURCES LTD
11.04%	TOURMALINE OIL CORP
9.56%	PEMBINA PIPELINE CORP
9.44%	TRANSCANADA CORP
9.37%	ENBRIDGE INC
8.87%	KEYERA CORP

Why should I consider buying an ETF?

ETFs offer a wide variety of choices, you can basically decide the allocation yourself based on your risk tolerance or rely on Robo advisers services (such as Questrade or Wealth simple).

What are the risks?

Recent Dividend Increases Canada – January 2023

Company	Amount	Previous Amount	Increase Amount	Ex-Date
BMO Bank of Montreal	$1.43	$1.39	2.88%	1/27/2023
RY Royal Bank of Canada	$1.32	$1.28	3.13%	1/25/2023
DNG Dynacor Group	$0.01	$0.0083	20.48%	1/6/2023
TD Toronto-Dominion Bank	$0.96	$0.89	7.87%	1/5/2023
FFH Fairfax Financial	$13.4150	$12.7810	4.96%	1/18/2023
CMR iShares Premium Money Market ETF	$0.1984	$0.1240	60.00%	12/30/2022
LB Laurentian Bank of Canada	$0.46	$0.45	2.22%	12/30/2022
BK Canadian Banc	$0.1684	$0.1656	1.69%	12/29/2022
EFN Element Fleet Management	$0.10	$0.0780	28.21%	12/29/2022
GRT.UN Granite Real Estate Investment Trust	$0.2667	$0.2583	3.25%	12/29/2022
WTE Westshore Terminals Investment	$0.30	$0.25	20.00%	12/29/2022
PSK PrairieSky Royalty	$0.24	$0.12	100.00%	12/29/2022
CEU CES Energy Solutions	$0.02	$0.0160	25.00%	12/29/2022
TCN Tricon Residential	$0.0790	$0.0740	6.76%	12/29/2022
ARX ARC Resources	$0.15	$0.12	25.00%	12/29/2022
CP Canadian Pacific Railway	$0.90	$0.19	373.68%	12/29/2022
ZDM BMO MSCI EAFE Hedged to CAD Index ETF	$0.26	$0.16	62.50%	12/28/2022
ZRE BMO Equal Weight REITs Index ETF	$0.10	$0.09	11.11%	12/28/2022
ZCH BMO MSCI China ESG Leaders Index ETF	$0.18	$0.17	5.88%	12/28/2022
ZID BMO MSCI India ESG Leaders Index ETF	$0.11	$0.0350	214.29%	12/28/2022
ICE Canlan Ice Sports	$0.03	$0.0275	9.09%	12/28/2022
CM Canadian Imperial Bank of Commerce	$0.85	$0.83	2.41%	12/23/2022
ORA Aura Minerals	$0.1880	$0.1770	6.21%	12/22/2022
NA National Bank of Canada	$0.97	$0.92	5.43%	12/22/2022
BPF.UN Boston Pizza Royalties Income Fund	$0.1020	$0.10	2.00%	12/20/2022
QSR Restaurant Brands International	$0.7360	$0.6910	6.51%	12/20/2022
TF Timbercreek Financial	$0.0580	$0.0575	0.87%	12/29/2022
CSU Constellation Software	$1.3630	$1.28	6.48%	12/19/2022
TVE Tamarack Valley Energy	$0.0130	$0.01	30.00%	12/29/2022
BYD Boyd Group Services	$0.1470	$0.1440	2.08%	12/29/2022

Recent Dividend Increases Canada – November-December 2022

Company	Amount	Previous Amount	Increase Amount	Ex-Date
TWC TWC Enterprises	$0.05	$0.02	150.00%	11/29/2022
STLC Stelco	$0.42	$0.30	40.00%	11/24/2022
ATD Alimentation Couche-Tard	$0.14	$0.11	27.27%	11/30/2022
AGI Alamos Gold	$0.0340	$0.0320	6.25%	12/5/2022
CMR iShares Premium Money Market ETF	$0.1240	$0.1230	0.81%	11/22/2022
GIL Gildan Activewear	$0.23	$0.2160	6.48%	11/22/2022
SLF Sun Life Financial	$0.72	$0.69	4.35%	11/22/2022
YRI Yamana Gold	$0.0410	$0.0390	5.13%	12/29/2022
CVD iShares Convertible Bond Index ETF	$0.0720	$0.0710	1.41%	11/21/2022
WPM Wheaton Precious Metals	$0.2040	$0.1920	6.25%	11/18/2022
MX Methanex	$0.2380	$0.2250	5.78%	12/15/2022
SU Suncor Energy	$0.52	$0.47	10.64%	12/1/2022
FTS Fortis	$0.5650	$0.5350	5.61%	11/16/2022
FN First National Financial	$0.20	$0.1960	2.04%	11/29/2022
MMX Maverix Metals	$0.0170	$0.0160	6.25%	11/29/2022
XIU iShares S&P/TSX 60 Index ETF	$0.2360	$0.23	2.61%	11/21/2022
ICE Canlan Ice Sports	$0.03	$0.0275	9.09%	12/28/2022
CEU CES Energy Solutions	$0.02	$0.0160	25.00%	12/29/2022
CCA Cogeco Communications	$0.7760	$0.7050	10.07%	11/9/2022
OVV Ovintiv	$0.3410	$0.32	6.56%	12/14/2022
EQB EQB	$0.33	$0.31	6.45%	12/14/2022
HDI Hardwoods Distribution	$0.13	$0.12	8.33%	1/12/2023
TCN Tricon Residential	$0.0790	$0.0740	6.76%	12/29/2022
FTT Finning International	$0.2360	$0.2050	15.12%	11/23/2022
TA TransAlta	$0.0550	$0.05	10.00%	11/30/2022
PZA Pizza Pizza Royalty	$0.07	$0.0680	2.94%	11/29/2022
FNV Franco-Nevada	$0.4360	$0.4090	6.60%	12/7/2022
CSU Constellation Software	$1.3630	$1.28	6.48%	12/19/2022
T TELUS	$0.3510	$0.3390	3.54%	12/8/2022

Source: Market beats – Dividend Increases Canada

Dividend calendar Canada

Recent Dividend Increases – Canadian Banking sector

Company	Amount	Previous Amount	Increase Amount	Ex-Date
CWB Canadian Western Bank	$0.32	$0.31	3.23%	12/14/2022
CM Canadian Imperial Bank of Commerce	$0.85	$0.83	2.41%	12/23/2022
BMO Bank of Montreal	$1.43	$1.39	2.88%	1/27/2023
TD Toronto-Dominion Bank	$0.96	$0.89	7.87%	1/5/2023
RY Royal Bank of Canada	$1.32	$1.28	3.13%	1/25/2023
NA National Bank of Canada	$0.97	$0.92	5.43%	12/22/2022
SLF Sun Life Financial	$0.72	$0.69	4.35%	11/22/2022
FN First National Financial	$0.20	$0.1960	2.04%	11/29/2022

Dividend Increases Canada

Dividend cuts – Novembre-Décembre 2022

Company	Amount	Previous Amount	Decrease Amount	Ex-Date
AQN Algonquin Power & Utilities	$0.2460	$0.4670	-47.32%	12/29/2022
PSD Pulse Seismic	$0.0125	$0.0130	-3.85%	11/11/2022
BRE Bridgemarq Real Estate Sces	$0.1120	$0.1125	-0.44%	11/29/2022
MAL Magellan Aerospace	$0.0250	$0.05	-50.00%	12/14/2022
ABX Barrick Gold	$0.15	$0.20	-25.00%	11/29/2022
TIH Toromont Industries	$0.0040	$0.39	-98.97%	12/7/2022
TRI Thomson Reuters	$0.4450	$0.5720	-22.20%	11/16/2022
CGI Canadian General Investments	$0.23	$0.2730	-15.75%	11/29/2022
GWR Global Water Resources	$0.0320	$0.0630	-49.21%	10/14/2022

Source: Market beats

Dividends (Definition)

Dividends are paid by companies to their shareholders. They constitute a portion of the company’s profit. It is the board of directors which proposes a rate called (Ratio of payment of the dividends or ‘Pay out ratio’. The ratio is a percentage of the profit. Example, a company made a profit of 1,000,000 $, and it decides to pay 50% in dividends and the rest will be reinvested in the company.

Amount of dividends $ 500,000

Number of outstanding shares: 100,000 shares

Each shareholder will receive $ 5 in dividends.

Dividends can be distributed quarterly or annually. In rare cases, companies pay their dividends monthly.

• “declaration date”: The declaration date is the day on which the board of directors announces its intention to pay a dividend.

• “ex-dividend date”: Date to be retained, each person who holds the share on this date is automatically eligible to receive the declared dividends.

Example: the ex-dividend date is May 3.

You must acquire the share at least 3 business days before the ex-dividend date, which is April 27.

You can sell the stock on May 4th and you will still receive your dividend.

• “payment date” / “payment date”: The payment date is the date on which the dividend will actually be paid. Everything is done automatically, there is nothing you can do.

Building a Strong Portfolio with ETFs: Essential Steps and Strategies

Investing in ETFs is a prudent and effective method to build a diversified portfolio that aligns with one’s investment goals. To achieve this objective, there are several essential steps that an investor should consider.

Firstly, an investor must define their investment goals. They need to carefully assess whether they want to focus on long-term growth, generate income, or a combination of both. This crucial step will help them select the appropriate ETFs to achieve their objectives.

Next, an investor should select the asset classes that are best suited to their investment strategy. This could include equities, bonds, real estate, commodities, or other asset classes that align with their risk appetite and financial goals.

After selecting the asset classes, an investor should then research the ETFs that track those asset classes. This research must include evaluating their expense ratios, liquidity, and other metrics to ensure that they align with their investment goals.

An investor should also focus on diversification to ensure that their portfolio remains balanced and aligned with their goals. This can be achieved by selecting multiple ETFs that track different asset classes and rebalancing them periodically to ensure the portfolio remains on track.

Finally, an investor should monitor their portfolio regularly to ensure that it continues to meet their investment objectives. Any changes to the portfolio must be made based on objective assessments to avoid emotional or irrational decisions.

In conclusion, investing in ETFs is a well-established and effective method for building a diversified portfolio. By following these steps, an investor can make informed decisions and create a portfolio that aligns with their financial goals, risk appetite, and investment objectives.

Portfolios by level of risk

Investors have different levels of risk tolerance, which influences the types of portfolios that they may choose to build. Here are some common types of portfolios based on risk tolerance:

Conservative Portfolio

A conservative portfolio is suitable for investors who have a low tolerance for risk. This type of portfolio usually contains a mix of fixed-income securities such as bonds, money market funds, and low-risk stocks. The primary goal of this portfolio is to preserve capital and generate steady income with low volatility.

Moderate Portfolio

A moderate portfolio is suitable for investors who are willing to take on some level of risk to achieve moderate returns. This type of portfolio may contain a mix of stocks, bonds, and other asset classes. The goal of this portfolio is to achieve a balance between capital preservation, steady income, and moderate growth.

Aggressive Portfolio

An aggressive portfolio is suitable for investors who are willing to take on higher levels of risk to achieve potentially higher returns. This type of portfolio may contain a mix of high-risk stocks, small-cap stocks, and other high-risk investments. The goal of this portfolio is to achieve high growth, and investors should be prepared for higher volatility and potential losses.

Income Portfolio

An income portfolio is suitable for investors who prioritize generating income over capital appreciation. This type of portfolio usually consists of high-yielding fixed-income securities such as bonds, preferred stocks, and dividend-paying stocks. The goal of this portfolio is to generate a steady stream of income with minimal risk.

Growth Portfolio

A growth portfolio is suitable for investors who prioritize long-term growth over current income. This type of portfolio may contain a mix of high-growth stocks, mutual funds, and ETFs. The goal of this portfolio is to achieve long-term capital appreciation, and investors should be prepared for higher volatility and potential losses.

It’s essential to note that each investor’s risk tolerance is unique, and portfolios should be tailored to individual needs and goals. A financial advisor can help investors determine their risk tolerance and create a portfolio that aligns with their investment objectives.

Growth Portfolio – allocation breakdown

80% Equity / 20% Fixed Income

Fund	Name	Asset class	Weight
XIU.TO	Ishares S&P TSX 60 Index ETF	Equity	25%
ZSP.TO	BMO S&P 500 Index ETF	Equity	35%
ZQQ.TO	BMO Nasdaq 100 Hedged To CAD Index ETF	Equity	10%
ZEA.TO	BMO MSCI EAFE ETF	Equity	10%
CSAV.TO	CI High Interest Savings ETF	Fixed Income	10%
ZAG.TO	BMO Aggregate Bond Index ETF	Fixed Income	10%
Total			100%

100% Equity

			Growth
Fund	Name	Asset class	Weight
XIU.TO	Ishares S&P TSX 60 Index ETF	Equity	25%
ZSP.TO	BMO S&P 500 Index ETF	Equity	35%
ZQQ.TO	BMO Nasdaq 100 Hedged To CAD Index ETF	Equity	20%
ZEA.TO	BMO MSCI EAFE ETF	Equity	10%
ZEM.TO	BMO MSCI Emerging Markets Index ETF	Equity	10%
			100%

The recent stock market correction represents an opportunity to invest in quality Canadian securities at attractive prices. If you’re an investor looking to build a dividend portfolio, a good place to start is the Dividend Aristocrats list. In this article, we’ll be looking at 7 best dividend stocks to buy and hold right now. The selected stocks are near their 52-week lows and are part of the ‘Dividend Aristocrats’. We will review key financial indicators including several popular ratios. Finally, we will discuss the following securities in detail: Royal Bank, TD Bank, Enbridge and BMO.

Note: This list is only a starting point for further research and not a purchase recommendation.

This post is available in video format!

Selection criteria

The most important criterion is that the stock is a ‘Dividend Aristocrat’. That is to say a company known to pay and increase its dividends from year to year. To be part of the Canadian Dividend Aristocrat, a company must have paid and increased its dividends for at least 5 years in a row.

The list of “Dividend Aristocrats” is managed by the firm Standard and Poors. The index is titled S&P Canadian Dividend Aristocrats. It requires a minimum of 5 years of successive dividend increases. For the full list of Canadian Dividend Aristocrats stocks, please follow the link here.

Other criteria used are listed below:

Price close to the lowest price in the past 52 weeks
Dividend yield above 4%
Reasonable Price / Earnings Ratio
Low dividend payout ratio and sustainable dividends
Beta less than 1.5
Analyst consensus

Best Dividend Stocks to Buy and Hold

Current price vs 52 weeks low and high

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Dividend yield

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As you can see the list is dominated by financial stocks especially the big banks. The Canadian banking sector is among the most stable in developed economies. Canadian banks are also mostly ‘Dividend aristocrats’ with a history of paying and increasing their dividends year after year. In addition, the gradual increase in the prime rate by the central bank can only benefit banks in the short and medium term.

In the short to medium term, banks tend to pass on any increase in the cost of credit to their customers quickly, but interest on deposits follow much more slowly. This practice allows banks to improve their profits in the short term. Another strength of Canadian banks is their long-term growth potential. So, in addition to having access to a decent dividend income, one can expect to benefit from a long-term capital gain.

We also note the presence in the list of one non banking stock: Enbridge. Enbridge is a company with stable cash flows thanks to the business model specific to the Gas transmission industry (long-term contract with price fixed in advance and minimum quantity to be delivered guaranteed). The dividends of Enbridge is considered by analysts to be sustainable.

DGR Streak

Name	DGR Streak
MFC -Manulife Financial Corp	12
CM -CIBC	11
RY -Royal Bank of Canada	10
BMO -Bank of Montreal	11
BNS -BNS Bank	11
TD -TD Bank	10
ENB -Enbridge Inc.	27

Source: Finviz, DGR Streak: Number of consecutive years the stock paid and increased its dividends

15 Best Monthly Dividend Stocks in Canada for passive income

Full list of ‘Dividend Kings’ stocks by sector – 2022

Financial ratios and comments

As you can see in the tables below, the valuation of Canadian banks seems adequate. the Price to Earning multiple is around 10, which could represent a buying opportunity. The ratios that assess the ability to maintain dividends are all excellent. Dividend payout ratios are sustainable being below 60%.

Enbridge has a very high dividend payout ratio. It pays almost all of its cash flow in dividends. So there is little potential for growth.

According to analysts, the business model of Enbridge makes its dividend sustainable in the long term.

Definition:

P/E: Price to earnings ratio
Total Cash per Share: total cash divided by the number of shares
Payout Ratio: Dividend payout ratio (Dividend divided by the company’s earnings)
ROE: Return on Equity. That is to say, as a shareholder, what is your return on the equity you have invested.
Beta: Measure of volatility, for example a Beta of 0.5 means that historically when markets have fallen by 10%, a stock with a Beta of 0.5 will fall by 5% on average (less sensitive to the market’s mouvements)

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Table 4: updated daily – best dividend stocks to buy and hold

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Table 5: updated daily – best dividend stocks to buy and hold

Further analysis

TD Bank

TD is listed on the Toronto Stock Exchange (TSE). It’s a dividend aristocrat stock with 10-year consecutive dividend increases!

This major canadian bank has a very good track record of growth throughout its 100 year history. Their revenue and EPS have been steadily growing 4-5% per year for the past 5 years. They are actively working to grow their digital presence and are implementing several strategies to increase their revenue across their top three business lines.

TD is also forming a strategic alliance with several leading companies (e.g., Amazon (NASDAQ:AMZN) and Starbucks (NASDAQ:SBUX) to better connect with retail customers. They have also recently acquired several key businesses (p. Headlands Tech Global in 2021) to enhance their global reach.

Dividend growth over the past five years has been 7.91%. This is very good news for any investor. The continued increase in dividends helps investors cope with the impact of inflation.

Enbridge

Enbridge is one of the largest operators of pipelines and midstream energy infrastructure (Midstream) in North America. The company is listed on the Toronto Stock Exchange (TSX) under the symbol ENB. The title is recognized as a ‘dividend aristocrat’ i.e. a company that has a long history of increasing these dividends.

Highlights

transports approximately 25% of all crude oil produced in North America
Exports approximately 65% of Canadian production to the United States;
transports approximately 20% of all natural gas consumed in the United States with an extensive pipeline network that spans approximately 23,850 miles
provides natural gas utilities in Canada with 3.8 million metered connections in Ontario and Quebec serving more than 15 million people

Dividend history

The graph below demonstrates that the company’s cash flow continued to grow even during the 2008 financial crisis or more recently the pandemic. Over the last 5 years, the dividend has increased by 9.52%.

Business model

Enbridge makes its money by transporting crude oil, natural gas and related compounds through its pipelines and charging fees based on the volume of resources transported. Volume billing immunizes the business against fluctuations in commodity values.

Enbridge conducts all of its operations under long-term contracts that should remain in place despite any short-term economic problems. These contracts contain what are known as minimum volume commitments, which specify a certain minimum amount of resources that the customer must receive through the company’s pipelines or pay for anyway. These minimum volume commitments help ensure that Enbridge will be able to maintain cash flow even if production declines.

BMO

Bank of Montreal offers diversified financial services primarily in North America.

key strenghts:

The strength of their capital market segment makes them less vulnerable to a downturn in Canadian real estate.
BMO has the highest return on equity among Canadian banks.
BMO is recognized in the Canadian banking industry for the sustained growth of these non-interest revenues.
The dividend payout ratio is only 30% which means that the risk of the bank lowering its dividend is quite low.
BMO’s track record of net income growth and low dividend payouts present the safety of dividends.
BMO is a good buy for income-seeking investors who want to hold securities for the long term.
Dividend growth over the past five years has been 4.51%.

Royal Bank

Royal Bank of Canada is a Canadian multinational bank and the largest bank in Canada by market capitalization. The bank has $1.690 billion in assets, about 86,000 employees along with 1,300 bank branches and almost 4,400 ATMs and is, without a doubt, one of the largest and most successful banks in the world.

Royal Bank of Canada operates in five segments, allowing it to generate profits in a variety of ways in different market environments.
Royal Bank shares offer an attractive yield of 3.89%. The dividend represents 43% of the results. The company has increased its dividends for 10 consecutive years, a sign of a solid financial situation.
Dividend growth over the past five years has been 5.92%. This is very good news for any investor. The continued increase in dividends helps investors cope with the impact of inflation.
Beta is a measure of volatility. Royal Bank’s Beta is 0.72, which means the stock is less volatile than the broader market.

Video

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TSX RY – Canadian Dividend aristocrat

RY trades in the Toronto Stock Exchange (TSE). RY is a dividend artistocrat stock with 10 years consecutive dividend increases!. 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. For the full list of Canadian Dividend Aristocrats stocks, please follow the link here.

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RY: Stock analysis

Strengths

+ Royal Bank of Canada holds a very strong balance sheet and is fundamentally sound;

+ Well-positioned to take advantage of an environment with rising interest rates;

+ 10 consecutive years of dividend increases.

Weaknesses

– Competition from both large banks and fintech companies.

TSX RY – Dividend profile

RY stock offers an attractive yield. The dividend is safe as the pay out ratio is low. The bank increased its dividends for 10 consecutive years which is a sign of a solid financial situation.

The dividend growth in the past five years was 7.91%. This is really good news for any investor. The continuous increase in dividends helps investor cope with the impact of inflation.

The Beta is a measure of volatility. RY’s Beta is less than 1 meaning the stock is less volatile than the overall market.

The Bank witnessed both growth in earnings and revenues in the past 5 years. So, the increase in dividend was supported by actual growth in the banks revenues.

TSX RY – Financial data

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RY profile

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