Individuals seeking income frequently turn to a dividend ETF in Canada. These investments purchase dividend stocks and offer investors a low-cost way to create passive income. Canadian dividend ETFs focus on stocks offering higher yields, typically comprising established companies that distribute modest income to investors rather than reinvesting profits.
These ETFs deliver a dependable income stream and are viewed as stable long-term investments, occasionally providing monthly dividends. These companies are often well-established blue-chip entities with a history of consistent dividend payouts.
What is the Best Dividend ETF in Canada?
- DXC.TO: Dynamic Active Canadian Dividend ETF
- VDY.TO: Vanguard FTSE Canadian High Dividend Yield Index ETF
- XDIV.TO: iShares Core MSCI Canadian Quality Dividend Index ETF
- RCD.TO: RBC Quant Canadian Dividend Leaders ETF
- DGRC.TO: CI WisdomTree Canada Quality Dividend Growth Index ETF
- ZDV.TO: BMO Canadian Dividend ETF
- PDC.TO: Invesco Canadian Dividend Index ETF
- HAL.TO: Horizons Active Cdn Dividend ETF
| Manager | ETF | Dividend Yield | Distributions | 5Y |
|---|---|---|---|---|
| BlackRock | CDZ | 3.95% | Monthly | 8.03% |
| BlackRock | XDIV | 4.73% | Monthly | 9.51% |
| BlackRock | XEI | 5.26% | Monthly | 8.58% |
| BMO | ZDV | 4.37% | Monthly | 7.96% |
| CI | DGRC | 2.46% | Quarterly | 9.00% |
| Dynamic | DXC | 2.44% | Monthly | 11.36% |
| Horizons | HAL | 3.49% | Quarterly | 7.20% |
| Invesco | PDC | 4.86% | Monthly | 7.20% |
| RBC | RCD | 3.93% | Monthly | 9.02% |
| Vanguard | VDY | 4.61% | Monthly | 9.76% |
10. Horizons Active Cdn Dividend ETF
Horizons Active Cdn Dividend ETF (HAL.TO) seeks long-term total returns consisting of regular dividend income and long-term capital growth. HAL invests primarily in equity securities of North American companies with above-average dividend yields.
- Inception: 2010-02-09
- MER:0.68%
- AUM: $121,664,966
- Holdings: 37
- Beta: 0.91
- P/E: 10.47
- Yield: 3.49%
- Distributions: Quarterly
9. Invesco Canadian Dividend Index ETF
Invesco Canadian Dividend Index ETF (PDC.TO) invests in dividend-paying securities of Canadian companies to replicate the NASDAQ Select Canadian Dividend Index, which is comprised of companies that are listed on the Toronto Stock Exchange and have had stable or increasing annual regular dividend payments for the past five or more consecutive years.
- Inception: 2011-06-16
- MER:0.54%
- AUM: $778,376,303
- Holdings: 43
- Beta: 0.94
- P/E: 11.08
- Yield: 4.86%
- Distributions: Monthly
8. BMO Canadian Dividend ETF
BMO Canadian Dividend ETF (ZDV.TO)has been designed to provide exposure to a yield-weighted portfolio ofCanadian dividend-paying stocks.ZDVuses a rules-based methodology considering the three-year dividend growth rate, yield, and payout ratio to invest in Canadian equities. Securities will also be subject to a liquidity screening process. The underlying portfolio is rebalanced in May and reconstituted in November.
- Inception: 2011-10-21
- MER:0.39%
- AUM: $1,009,290,000
- Holdings: 51
- Beta: 0.94
- P/E: N/A
- Yield: 4.37%
- Distributions: Monthly
7. iShares S&P/TSX Canadian Dividend Aristocrats Index ETF
seeks to replicate the S&P/TSX Canadian Dividend Aristocrats Index, less fees and expenses.
- Inception: 2006-09-08
- MER:0.66%
- AUM: 892,062,817
- Holdings: 91
- Beta: 0.89
- P/E: 12.06
- Yield: 3.95%
- Distributions: Monthly
6. iShares S&P/TSX Composite High Dividend Index ETF
seeks long-term capital growth by replicating the performance of the S&P/TSX Composite High Dividend Index, net of expenses.
- Inception: 2011-04-12
- MER:0.22%
- AUM: $1,578,899,386
- Holdings: 75
- Beta: 0.93
- P/E: 10.81
- Yield: 5.26%
- Distributions: Monthly
5. CI WisdomTree Canada Quality Dividend Growth Index ETF
CI WisdomTree Canada Quality Dividend Growth Index ETF (DGRC.TO) seeks to track, to the extent possible, the price and yield performance of the WisdomTree Canada Quality Dividend Growth Index.
- Inception: 2017-09-19
- MER:0.23
- AUM: $747.30
- Holdings: 51
- Beta: 0.87
- P/E: 12.81
- Yield: 2.46%
- Distributions: Quarterly
4. RBC Quant Canadian Dividend Leaders ETF
RBC Quant Canadian Dividend Leaders ETF (RCD.TO) seeks to provide unitholders with exposure to the performance of a diversified portfolio of high-quality Canadian equity securities that are expected to provide regular income from dividends and that have the potential for long-term capital growth.
- Inception: 2014-01-09
- MER:0.42%
- AUM: $140,520,000
- Holdings:
- Beta: 0.93
- P/E: 13.24
- Yield: 3.98%
- Distributions: Monthly
3. iShares Core MSCI Canadian Quality Dividend Index ETF
iShares Core MSCI Canadian Quality Dividend Index ETF (XDIV.TO) seeks to provide long-term capital growth by replicating the performance of the MSCI Canada High Dividend Yield 10% Security Capped Index, net of expenses.
- Inception: 2017-06-07
- MER:0.11%
- AUM: 1,073,853,600
- Holdings: 17
- Beta: 0.79
- P/E: 13.17
- Yield: 4.73%
- Distributions: Monthly
2. Vanguard FTSE Canadian High Dividend Yield Index ETF
Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY.TO) seeks to track, to the extent reasonably possible and before fees and expenses, the performance of a broad Canadian equity index that measures the investment return of common stocks of Canadian companies that are characterized by high dividend yield. Currently, this Vanguard ETF seeks to track the FTSE Canada High Dividend Yield Index (or any successor thereto). It invests primarily in common stocks of Canadian companies that pay dividends.
- Inception: 2011-10-21
- MER:0.22%
- AUM: $2,360,000,000
- Holdings:
- Beta: 0.95
- P/E: N/A
- Yield: 2.64%
- Distributions: Monthly
1. Dynamic Active Canadian Dividend ETF
Dynamic Active Canadian Dividend ETF (DXC.TO) invests primarily in a broadly diversified portfolio of equity securities of Canadian based businesses that pay or are expected to pay a dividend or distribution.
- Inception: 2017-01-20
- MER:0.84%
- AUM: $220,200,000
- Holdings: 40
- Beta: N/A
- P/E: 0.86
- Yield: 2.44%
- Distributions: Monthly
Do Canadian ETFs Pay Dividends?
Most ETFs pay dividends, but some are solely focused on purchasing Canadian dividend stocks. Using ETFs to target is a practical strategy, providing exposure to dividend investing while maintaining diversification. These dividend ETFs mirror indexes comprised of dividend-paying stocks, employing diverse dividend strategies centred around yield, market capitalization, or geographical location. Publicly traded companies in Canada that pay dividends are heavily invested in the financial and energy sectors. Investors approaching, and in retirement, often favour dividend ETFs for their consistent income, risk mitigation, and inflation hedging.
Which Canadian ETF has the Highest Dividend?
is currently the highest Canadian dividend-paying ETF. When these dividends are reinvested it is in 7th place for total return compared to similar ETFs. With the number of Canadian dividend ETFs growing, it’s essential to align your choice with your specific goals, considering factors like investment style, past performance, sector diversity, and fees.
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