Q: Hi,
Can you tell me more about this ETF? Their annual dividend is 10.295% as per tmx money and looking at their holdings are solid dividend paying blue chip companies.Since June 2021 their dividends are increasing. Is this worth investing for income and is dividend safe?
Appreciate your thoughts.
Thanks, Sunday
Can you tell me more about this ETF? Their annual dividend is 10.295% as per tmx money and looking at their holdings are solid dividend paying blue chip companies.Since June 2021 their dividends are increasing. Is this worth investing for income and is dividend safe?
Appreciate your thoughts.
Thanks, Sunday
5i Research Answer:
The annual distribution yield is roughly 3.5%, TMX money states the distribution frequency is monthly, however, the CIBC website states that it is in fact quarterly.
The fund has $160.1M in AUM, a low MER of 0.05%, and is mostly made up of strong Canadian large-cap names. The volume is thin and so it does not trade as efficiently as other ETFs might, but we like the ETF for its low-cost, attractive yield, and solid returns since inception of 7.9%.
For a more liquid ETF ($11.2B in AUM), we would prefer XIU for similar holdings, yield, and performance.