This High-Yielding ETF Pays Monthly and Invests in Top Canadian Dividend Stocks
A good way to maintain safety while taking advantage of a high yield is by investing in an exchange-traded fund (ETF) that offers a good payout. For Canadian investors, an excellent option is the Invesco Canadian Dividend Index ETF (TSX:PDC). The fund's portfolio gives you a position in approximately 44 stocks, with a heavy focus on bank stocks. Its top four holdings are Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM), Toronto-Dominion Bank (TSX:TD)(NYSE:TD), Bank of Montreal (TSX:BMO)(NYSE:BMO), and Bank of Nova Scotia (TSX:BNS)(NYSE:BNS). In total, financial stocks account for around 40% of its overall portfolio.
The ETF has a management fee of 0.50%, which is comparable to similar funds, and isn't too expensive overall. It makes distributions to investors every month and yields around 4.3%.
Since the start of the year, the Invesco fund has generated returns of around 8%. With a beta value of more than 0.9, the ETF's performance will largely follow how the overall market performs, and thus, it can be a relatively safe investment; it isn't likely to be highly volatile given the nature of its holdings and their stability.
The fund can be a solid option whether you want a good buy-and-hold investment to not worry about, or if you simply want some recurring monthly dividend income to collect.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CTV News
an hour ago
- CTV News
All in on ETFs? Experts share how to diversify your portfolio — without overdoing it
TORONTO — Exchange-traded funds have exploded in popularity, and so have investment strategies based only on ETFs, but some investors might be wondering whether that could lead to their portfolio being too diversified. Financial experts say allocating an entire portfolio to ETFs can be a viable strategy, but it's important for investors to know what holdings are in the funds they're buying. When looking at portfolio diversification for ETF-focused investors, Jonathan Rivard, general principal at Edward Jones, said it's important to consider the individual's time horizon and risk appetite. 'You could absolutely be 100 per cent invested in ETFs. But you want to know what's in the ETF and what the allocation looks like. Some ETFs will be balanced; they'll have a mix of stocks and bonds in them. Some will be sector products,' Rivard said. 'The important thing comes down to understanding what does this basket hold? And if I own multiple ETFs, what does it look like across multiple ETFs in terms of asset allocation?' Prerna Mathews, Mackenzie Investments' vice-president of ETF product strategy, said there are a few key points to keep in mind regarding diversification, notably, it is important to think beyond just diversifying by geography. 'So (if) you're starting with the core Canadian, U.S., international exposure, don't stop there. Think about how fixed income plays a role in your portfolio, real assets, there are thematic products, and there are alternative ETFs. There are a lot of different drivers of return that can be added to a portfolio available in ETF form,' she said. Another consideration is buying ETFs with different investment styles, she said, which may include combining traditional index ETFs with others that are actively managed or have low volatility. Time horizon is also an important consideration, where those with a longer investment horizon may want to focus on growth, she said, taking on more risk with higher equity exposure. Regarding fixed income, Mathews said to be aware of the differences between short- and longer-term yields, adding that most investors will likely not have exposure to every duration of fixed income and should know the relevant trade-offs. 'In some cases, you can get a very attractive yield at the short end of the curve without taking on significant risk as you would on the long end,' she said. 'Really understanding the trade-off there and likely having some short-term fixed income in the portfolio would be viable. But aggregate bonds over a 30-year time period are generally a good place to be.' Mathews said there is also a growing number of investors opting for an asset allocation ETF. She said this type of ETF is essentially eight to 12 ETFs 'all packaged up in one,' and has served as a core holding for those looking for a 'set it and forget it' investment. Despite the benefits of diversification, Mathews said there are dangers to being overly diversified. This might occur for someone investing in Canadian equities through an ETF but also buying into an asset allocation ETF, Mathews said. In that case, the investor may end up with more Canadian equity exposure than anticipated. Similarly, with the TSX financials sector representing around 30 per cent of the overall index, an investor with a TSX-focused ETF and a Canadian banks-focused ETF could end up with too much exposure to Canadian bank stocks. 'There is a risk of having too much product in your portfolio. Sometimes that can creep up on us when we're not doing a full look through to what each ETF might be investing in,' she said. This report by The Canadian Press was first published July 24, 2025. Daniel Johnson, The Canadian Press
CBC
an hour ago
- CBC
Digby affordable housing project on hold as federal funding dries up
A plan by a Digby, N.S., non-profit to build affordable housing on the site of a former downtown motel is at a standstill as the group awaits word on federal funding. The Digby & Area Housing Coalition Society purchased the former Siesta Motel in 2022 with an aim to turn the existing building into affordable housing, coalition chair Nancy Robinson said. Subsequently, it was decided that it would be more cost efficient to demolish the motel and build 34 units on the site. The units would serve seniors and other vulnerable people facing Digby's severe housing shortage. Robinson said the units would be genuinely affordable, with tenants spending no more than 30 per cent of their income on rent, including utilities. She said they already have many applicants for the units. After securing $300,000 in funding including provincial grants for design work and municipal approvals, the $11.2-million project was construction-ready this spring and awaiting the release of federal funds. After waiting for the outcome of the federal election, Robinson said the group was told the Canada Mortgage and Housing Corporation's affordable housing fund, their expected funding source, had been depleted. 'That's a lot of money' CMHC said in an email to CBC that it's affordable housing fund "has attracted significant interest and success, resulting in numerous high-quality applications," but did not indicate if and when it will be replenished. Robinson said the devastating news has left the project in limbo. "That's a lot of money and it's very difficult to make that up," she said. "It's nerve-racking, not just because of the number of people that are waiting for housing, desperately waiting for housing, and Digby where there's really basically nothing available and certainly nothing affordable." Robinson said the delay leaves the volunteer organization having to cover significant costs, including the $2,600-monthly mortgage payment on the vacant property. The delay couldn't come at worse time for Digby, she said. The community's housing shortage has reached emergency levels. She said the funding issue appears linked to broader changes in federal housing policy. While Ottawa works to implement its new housing plan, she said existing programs like the affordable housing fund have been allowed to lapse. Robinson said she understands the need for systemic reform, but immediate action is needed to help people in desperate need of appropriate housing. The coalition has launched a local fundraising campaign and is exploring alternative financing options. Chris D'Entremont, the Conservative MP for Acadie-Annapolis, which includes Digby, said it was strange the program was still taking applications even though it said its funds have been depleted. He said billions of dollars have gone into the fund, which has existed since 2018. "We're hoping that as the fall rolls around, of course, there's going to be a budget coming," he told CBC Radio's Information Morning Nova Scotia. Finance Minister François-Philippe Champagne "has said that there will be a program coming, that there should be funding. So we're hoping it will be topping this off." With demolition delayed from its planned May 2025 start, Robinson said completion could now slip to late 2026. Meanwhile, for the applicants the wait continues with no clear resolution in sight. "They are desperate. It's palpable. It's tragic, really," Robinson said.
CBC
an hour ago
- CBC
Whole new neighbourhood proposed for Rothesay, with 1,277 housing units
Ali Kamkar moved to New Brunswick six years ago to have a more relaxing life and focus on raising kids after leading a busy life running manufacturing and property development businesses in the Middle East. He and his wife settled in Rothesay and began to put down roots, with his daughter enrolling at Rothesay Netherwood School. Another daughter was born a year after they arrived. Kamkar soon became restless because of his entrepreneurial nature. "Business is in my blood," he said. "After six months, I needed to go back to work. I start to look around for opportunities. I thought, how can I do something positive for our community? How can I bring something that the community needs?" With a business partner from B.C., he opened a self-storage operation in Millidgeville with 440 units and began looking around for housing development opportunities. In Rothesay, he saw the need for a better mix of housing and has submitted a proposal for a mixed-use development that would add nearly 1,277 units over a 20-year period in a commercial and residential area near the highway. The town now has about 12,000 residents, so the development could provide a significant boost to the population and housing availability over time. Kamkar said the community has mainly single-family homes, which is great for young families but not for seniors or younger people. "Many people born here, raised here, they love to be here, but they are older," he said. "They want to move somewhere smaller. They want to stay close to friends and family, but they don't want to take care of the grass and shovel the snow. They want to be in the community, but there is nothing available in the community. "There are also young people that want to have their own place but not much is available or affordable." 'Times are changing in the region' Mayor Nancy Grant said Kamkar's proposal reflects the changing character of the community. "Rothesay has traditionally been a community of single-family homes, but times are changing in the region," Grant said. "We're trying to increase the population. There's a housing shortage, and there's a demand for various types of other types of housing." The proposed development by Landmark 661 Ltd. would include a mix of commercial businesses, apartment buildings, townhouses and single-family homes. It would happen in five phases, beginning with six, four-storey apartment buildings with 427 residential units and commercial businesses on the ground floors. Grant is impressed that the development is being designed to fit into the existing neighbourhood with the single-family homes on the part of the 22.8-hectare site adjacent to existing single-family homes along Wedgewood Drive. The townhouse units and 16 four-storey apartment buildings, seven of which would have ground-floor commercial spaces, would face the Campbell Drive-Millennium Drive area overlooking a Kent Building Supplies store and the Atlantic Superstore mall area. "The whole thing is beautifully designed," Grant said. "The apartment buildings are organized into four quadrants. Each has four apartment buildings and each is organized around a central courtyard and green space. "It will have a lighted landscaped main street with shops and restaurants … this will provide what planners like to call the complete neighborhood or the complete community. It's mixed-use. It's walkable, family-oriented, with a variety of housing, courtyards, trail system and green space incorporated." 'We need more walkable streets in Rothesay' Kamkar said the community needs more neighbourhoods like this. "We don't just design homes. Our design team wants to make a community — a village-style place where people have everything they want," Kamkar said. "We need more walkable streets in Rothesay like there are in places like uptown Saint John, with a coffee shop, restaurant, bar and hair salon." The large wooded plot of land doesn't need to be rezoned, but council will need to vote on whether to approve a development agreement. The next council meeting is Aug. 11.
