The iShares S&P/TSX Canadian Dividend Aristocrats Index ETF (CDZ) is an attractive option for investors seeking reliable income through dividend-growth stocks from financially healthy companies. With a dividend yield of 3.39% and a robust 1-year return of 12.19%, this ETF emphasizes companies that have consistently increased dividends for at least five consecutive years, underscoring its focus on stability. However, investors should be mindful of the 0.60% management fee, which slightly elevates to 0.66% when considering other costs.
Pros:
- Focus on companies with consistent dividend growth
- Strong historical performance
Cons:
- Higher management fees
- Lower yield compared to high-yield ETFs
The iShares S&P/TSX Canadian Dividend Aristocrats Index ETF (CDZ.TO) may be suitable for income-focused investors who prioritize stability and growth through dividend-paying stocks. While it offers a solid yield and commendable returns, potential investors should account for the management fee and consider their individual risk tolerance and investment goals.