The S&P/TSX 60 index recently included three stocks with yields in the 7 per cent zone, five around 6 per cent and another four or so in the area of 5 per cent. These exceptionally high yields reflect high interest rates that make bonds and term deposits seem a reasonable alternative.
Here are a few dividend ETFs that had distribution yields of 5 per cent or more in late September based on the latest monthly distributions:): A yield around 5.2 per cent in late September based on a portfolio of roughly 40 stocks. The management expense ratio is 0.11 per cent, which is exemplary for the dividend ETF category.) A yield of 5 per cent from a tight portfolio of 30 stocks. The MER is 0.55 per cent, which is a lot for an index-tracking ETF.): A yield of 5.
-Tax: Investors holding their dividend ETFs in non-registered accounts will want to ensure the vast majority of their distributions are dividends eligible for the dividend tax credit. A littleThis is the Globe Investor newsletter, published three times each week.