Hi Dividend Fans,
With the US$ on the climb and commodities and the CDN$ in decline, why not buy some US Dividend stocks to offset your portfolio?
You won’t get the preferred dividend tax benefit that Canadians get for buying eligible Canadian dividend paying companies but you’ll get a juicy yield, I think more upside, and the offset in exchange rate.
(Here is a calculator on how Canadian dividends are taxed that I think you’d like)
These are some ETFs I’d consider with US$ Yield:
1) BMO US Dividend ETF ZDY 3.85% Yield
2) iShares High Dividend Equity Index Fund XHD 2.89% Yield
3) iShares Global Monthly Advantage Dividend Index Fund CYH 3.4%
This one isn’t in US$ but has 50% US Preferred shares so I like it, I like it, I like it….
4) iShares S&P/TSX North American Preferred Stock Index Fund XPF 4.54% Yield
These four will hold up when our 5-10% summer correction comes around the bend. Or so all of the analysts are expecting. We’ve had a great run and it is wise to move some money into something a bit more conservative. Plus you can use that US$ yield to get some great deals at the cross border outlets! Win win.
Have a great week,