iShares S&P/TSX Canadian Dividend Aristocrats Index ETF (TSX: CDZ)

Posted by on Dec 20, 2015 in Uncategorized | 0 comments

Fund Card

With market volatility on the upswing, investors’ attention started to turn to better quality, and higher yielding issues, which this ETF invests in. To qualify for inclusion, a company must have increased dividends for at least five consecutive years. Another thing I like about this ETF is its valuation metrics look more favourable than the broader market, with valuations lower, and a yield that is higher than the S&P/TSX Composite. This should help to offer stronger downside protection if markets remain volatile. It also pays a variable monthly distribution that has ranged between $0.074 and $0.080 per unit, which works out to an annualized yield of around 3.8%. My biggest worry about this is it is an all cap mandate, with a lot of exposure to small and mid-cap names. This could result in periods of above average volatility. Still, I see this as a solid dividend focused offering.

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