Investment Q&A

Q: Hello 51 and Happy New Year! I would like your opinion regarding the following ETFS : VDY, XDIV and HDIV. Considering MERs for each and total return on investment which one in your opinion is a better buy?

Thank you in advance for your response.

Q: Most of my TFSA is in Canadian stocks (plus some US CDRs GOOGL, MSFT, AMZN). Now I'm thinking of adding 2 ETFs to my unregistered account. So far, my first choice is VFV, because I know you like it. But you mentioned another one that broadens out from the S&P 500. Not sure about that one: thoughts? But I want one more, particularly with dividend and some growth. If there is a USA one that, like VFV, trades in Canada TSX but pays dividends in US dollars, that might work nicely. Alternatively, maybe a Canadian one that is not too focused on Financials and Energy, one with which I could get dividend tax credit, may work. Between dividend and growth, I would lean toward growth and sacrifice some dividend. Between Canada and USA, I'd like USA, but only if I can buy on TSX. I'd like to stick to just two, but maybe three would work best? What say you? Thank you, yet again, for such a fabulous service.

Q: Would any of these ETF's have year-end distributions?
Is it a good idea to just wait until the new calendar year now, to start a new position in one of these?

Q: If I had all of these funds would there be too much overlap? What is your favourite one out of the group?

Q: I am nearing retirement and planning to rebalance my taxable portfolio towards Canadian dividend stocks and ETFs, so that I can live off CPP and eligible dividends in retirement. What are your favorite Canadian ETFs where all distributions are treated as eligible dividends? You recommended CDZ many times, is it still your favorite?

Q: Which one do you prefer? Thanks.

Q: These are on my watchlist. Do you see any problems with these?

Q: Question:
When analyzing Total return performance of VDY, RCD, XDIV over the long term. What % is due to price appreciation and what % is due to dividends?
These are ETF's focused on Canadian Dividend Income.

Previous Answer for XIU:

Over the last ten years, XIU’s total return CAGR is around 8.9%, with price appreciation and dividends accounting for 5.8% and 3.1%, respectively.

Over the last five years, XIU’s total return CAGR is around 11.7%, with price appreciation and dividends accounting for 8.3% and 3.4%, respectively.

Q: I want to keep a portion of my money in safer/ income producing assets. I have a sum of money in a high interest cash account > 4.25%. What is the difference between the 2? Would it not make sense to keep all the money in the cash acct? Or what would the pros and cons of this be?

Q: Please recommend a Canadian low volatility dividend etf
I am primarily interested in income with possibility of some growth
5-10 year horizon
Many thanks

Q: Hey team. I'm a senior, dividend investor and I have been investigating both Ishares XEI (S&P Comp High Div ETF) and Vanguards VDY (Vangaurd FTSE Canadian High Div Yield Index ETF).
They look pretty much the same with slightly different holdings with XEI having a slightly higher dividend. Looking for your advice as to which one has the edge on the other. I own XEI now.
My second question is on the Ishares ETF- FIE (Canadian Financial Monthly Income) Yield of 6.49% when I looked. I'm not real happy with the high MER of .80 Would you know of an equivalent ETF with a lower MER that I could research? Cheers and thanks for your expertise and advice. Bill

Q: Interested in dividend etfs and looking at these 3
How can I find information on the general holdings of each? For example is weighting mostly financials ? utilities ? etc. Mo point in buying 2 with similar weightings!
Is there a sight that discloses holdings in each or at least general weightings.
Do you have a favorite among these 3 or another to recommend. Goal us income with some growth but primarily income 5 year horizon
Many thanks for great service
Peter

Q: Could you please suggest 2 or 3 dividend ETFs that I could look at to increase the amount of dividends in my account.

Thank you
Paula

Q: Can you recommend a list of safe dividend income ETFs with high steady monthly distributions? Thanks.

Q: Can you pls recommend 3 Cdn ETFs that focus on high dividend stocks, with an estimated 10% yield including both dividend and capital appreciation for over the next 1 year?

Q: Setting up a simple-to-manage, taxable account, with the goal of reasonable stability/safety of capital and the generation of tax efficient income of 4-5% (ideally dividends so Canadian Div tax credit can be used) . Could I please get your comments or alternate suggestions on the following:
25% in VDY, ZUT, HTA and the final 25% split between EIF and BAM. I believe all of these distribute eligible dividends, other than HTA which seems to be Return of Capital / Capital gains.
Registered accounts are held in diversified equities.
Many thanks.

Q: My grandchild is turning 20 in the fall and entering the work force, has no knowledge on investing. We are going to get him to start a Tax Free Savings Account with $2,00.00 original investment then encourage him to add $50.00- $100.00/ month there after. Untill he becomes more interested in learning more about investing we are thinking of starting with a dividend paying ETF or fund, any suggestions on a few ETF's or funds

Q: Hi 5i, I have the following stocks (NVDA CSU LMN HPS.A BN XDIV RY CNQ JPM BRK.B VDY ENB) equally distributed in my rrsp, these stocks are generating 75% of my dividend-income goal. What changes would you suggest to get the last 25% , I do not mind selling my gold-stocks (the first 3) , but I would prefer to keep them. Hope it makes sense. Thank you 5i.

Q: portfolio strategy question

I have adopted a dividend investment strategy of investing predominantly in canadian dividend paying equities and as expected am overweight in financials, telecom and utilities, this strategy allows me to sleep well at night, I am looking at enough dividend income from the portfolio to retire on and not have to touch the principle investment.

besides the lack of diversification in geography and sector. can you give me your opinion about concerns you may have with such a strategy and what you would suggest doing otherwise ?

Q: I have 1.5 million to invest. I need income of $70000 per year before tax for the next 10 years. I hesitate to put it in to a single type of investment.. please suggest a mix I could use to get me close to this goal. A slight growth would be a bonus . Thanks