Owning Canadian dividend stocks is great for passive income, which is why sometimes some of the top investments to buy are dividend ETFs, which give you instant diversification.
Diversification is always important. But diversification isn’t just about lowering your exposure to the potential for your stocks to fall in value. You also want to diversify the dividend stocks you own. This way, if there’s a black swan event, such as a pandemic, which causes some stocks to trim their dividends, others will continue to pay you as expected.
So, if you’re a dividend investor and are looking to boost your passive income, here are three of the top ETFs to buy today. A high-yield dividend ETF to buy now
One of the best and most popular dividend ETFs for Canadian investors to buy is iShares Canadian Select Dividend Index ETF (TSX:XDV) . The XDV is so popular because it offers investors exposure to roughly 30 of the highest-quality dividend stocks in Canada.
Its investment objective is to replicate the performance of the Dow Jones Canada Select Dividend Index — an index made to track the performance of high-dividend stocks. So, not only are these some of the best Canadian dividend stocks to own for passive-income seekers, but they are handpicked by a team of professionals, so you know they are among the highest-quality stocks in Canada.
The fund offers exposure to stocks in several sectors , but the three sectors with the most exposure are financials, communications and utilities — all highly robust businesses.
Right now, the trailing 12-month yield is just over 3.6%, and the fund pays out cash monthly to investors — an attractive feature. And, of course, one of the most important factors, with all the different substitutes investors have today, it’s important to find a low-cost fund to buy, […]
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