Best High Dividend ETFs in Canada that pay Monthly! (HDIV vs HYLD vs HMAX)

HYLD ETF, HDIV ETF, HMAX ETF - These High Yield Dividend ETFs are drawing attention from many Income Investors in Canada. Monthly cash flow continues to be of significant important for many Canadian Investors. Who doesn’t want to get paid for doing nothing through passive investing. Should you be adding these High Yield ETFs to your portfolio? Download my Yield Maximizer Spreadsheet to find out: bit.ly/3KvQ8fl
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0:00 Best High Yield Dividend ETFs in Canada
0:54 HDIV ETF Review
10:33 HYLD ETF Review
15:23 HMAX ETF Review
19:10 How to Build an Investment Portfolio
The best dividend ETFs in Canada use investor funds to buy and hold a basket of high-paying dividend stocks. Instead of picking individual dividend stocks on your own and worrying about diversification, dividend ETFs are pre-designed to be diversified across various sectors and industries
In this video, I cover some of the best Canadian dividend ETFs you can buy and their benefits and downsides
Dividend ETF fund managers screen for reliable (blue-chip) companies with a solid history of paying and increasing dividends over the years. They also screen these stocks for other performance criteria (e.g. size, liquidity, ROE, yield, debt levels, etc.) before adding them to the ETF.
Dividend ETFs issue dividends to investors periodically, either monthly, quarterly, or annually. You can either take the cash or reinvest the dividends to increase your stake in the ETF
Dividend-paying ETFs might be more suitable for older investors seeking more consistent income from their portfolio. For younger investors, focusing on maximizing total returns might be a better idea.
While reinvesting dividend payments can help portfolio returns compound faster, the risk of under-diversification cannot be ignored. Many dividend ETFs tend to be concentrated in only a few sectors, like energy, financials, or utilities.
Disclaimer: This channel is for education purposes only and opinions expressed in this video are based on personal research and should be treated as such. These are not instructions, suggestions, nor directions as to how to handle your money. The facts and figures presented in this video are up-to-date based on the recording. These may have changed based on when you watch the video, please, always do your own due diligence! The description of this video includes Affiliate links (I get paid at no cost to you for trying out a particular service.) #highyield #etfs #dividendinvesting

[@DanishGhaziCPA]

► Yield Maximizer Spreadsheet: bit.ly/3KvQ8fl ► Basic Portfolio & Dividend Tracker Spreadsheet: bit.ly/3pqImqz ► Advanced Portfolio & Dividend Tracker Spreadsheet: bit.ly/3KfqF7m ► Start Investing in High Yield ETFs with IBKR: bit.ly/3THdKPL

[@mikeman5505]

Awesome video dude, thanks so much for the content!! 🙏

[@Gillesgip]

Well done!

[@DanishGhaziCPA]

Thank you!

[@EliasToronto]

Well done brother!!

[@DanishGhaziCPA]

Thanks for the visit

[@joefalcone4762]

Great information

[@DanishGhaziCPA]

Glad you think so!

[@dgomes265]

These are all on my sell list. Held them for 2 years and the yields are nice but do not offset the loss from the share price erosion.

[@Dividend-Shark90]

July 23, 2021 HDIV inception price 16.52, May 1 2024 HDIV current price 16.22 and all while giving a consistent 10%+ yield, doesn't spell erosion to me, of course its not a growth stock so dont expect the NAV to skyrocket with the market, but calculated total returns including dividends reinvested HDIV is beating the TSX. For NAV erosion check out TSLY, CLM etc.

[@lucaszuz1459]

Please do a video on how these are taxed, for example can you sell a stock for a loss to offset monthly gains recived by HYLD? I understand these etfs are taxed as capital gains and not dividend incime, please elaborate, would make for a great vudeo...thx

[@user-fv6ke8vv2z]

Nothing beats the sustainability of the Canadian banks , when it comes to dividends - BMO , for example has a dividend track record of close to 200 Yrs of paying dividends that have never been cut… so for that reason - I’m not afraid of HMAX… / I own both HMAX & individual bank stocks… , and I reinvest the dividends - to achieve compounding… but that’s done mostly on the individual bank stocks…😅

[@DanishGhaziCPA]

Hi, thanks for sharing your thoughts on the Canadian banks and their dividends. I’m also a big fan of the Canadian banks as a shareholder, and I agree that they have a solid track record of paying and increasing dividends over the years. BMO is one of the oldest dividend payers in Canada, and it has a very attractive yield today

[@valveman12]

I am hoping the cover call at the money using only 50% will be a win for HMAX. I bought a bunch of shares when it first came out and looking forward to the first dividend on Feb 28th. Just picked up your advanced stock tracker. Now, going to watch your tutorial. 😁

[@DanishGhaziCPA]

Love it!

[@bigbadbootydaddy616]

stop messing around with lower canadian dividends. as a fellow canadian il tell you my portfolio. #1 is IEP. pays 16% USD! it pays 2$ per share quarterly so do the math! thats 2.75 cad. and #2 is SVOL, this beast pays 18% EVERY MONTH in USD, this stock pays me 385$ USD every month which is 528.33 cad

[@uhhuh4897]

@@bigbadbootydaddy616 hi there, do u have another rcm? Sounds nice. Is there any notice when buying US stocks?

[@valveman12]

@@bigbadbootydaddy616 If your strategy works for you...Good for you. Canadian Dividends pay me over $3000.00/month...This works for me! BTW: I hold SVOL, and many other US stocks in my RRSP to avoid the holding tax. So if you have it in your RRSP, you can't spend the dividends until you start drawing from your RRSP. Again, you will pay tax.

[@paulpoco22]

Have $XDV and am still waiting for it to return to tge average cost

[@darkmedia8727]

none of the spreadsheet links work

[@armchairtraveler131]

Does the 2% management expense ratio come off of the 14% yield or is the yield after the 2% mer

[@DanishGhaziCPA]

If you're still looking for help, feel free to reach out over here: asqme.com/@DanishGhaziCPA

[@James_48]

Last comment from me for now. The really big red flag for HDIV is the fact that they are using the TSX 60 as a benchmark - BUT - it holds a whole lot of US companies!! That makes no sense. As most investors know the US market tends to perform better than the Canadian market - it is absolutely expected that this ETF should out-perform XIU (for example). The proper comparison should be more like a portfolio of 40% XIU and 60% VFV (this is a wild guess based on a very rough analysis). But, with this comparison HYLD under-performs. When we eventually turn the corner to a bull market HYLD will vastly under-perform the indices from which it's underlying holdings come from.

[@wallyg8020]

Now from my understanding about cover call there's no growth only income plus high management fees

[@kamranscent]

You buy cover calls for dividend.. reliable and steady even in the storm. 😊

[@voo5000]

Doesn't mean no growth. It can limit the upside yes. Your thinking of at the money calls on 100% of the fund. Some of these also have leverage

[@DanishGhaziCPA]

Typically with these ETFs, you are likely to see a trade off in capital appreciation for dividends today. There is no free lunch, there is no free yield, a higher yield typically comes with certain strings attached

[@kylejackson3171]

What if you hold HYLD in a TFSA, would you still pay withholding tax?

[@Dividend-Shark90]

no

[@DanishGhaziCPA]

If you're still looking for help, feel free to reach out over here: asqme.com/@DanishGhaziCPA

[@filb]

I've been using recently HMAX to get TD stock without paying a dime out of my pocket. I basically take a loan from my line of credit with my bank and both of them combine covers the interest rate. The goal with all of this is when TD makes it's return to it's normal PE of 11 or 12, that's when I would sell it...pay back the loan and keep some profit without paying a cent....the dividends from both stocks in the meantime will pay for the interest rates. I do not recommend anyone doing this, but this one is just an experiment I am doing to own a company without my own money. All hangs in the balance on whether HMAX pays their dividends or not....of course if they cut or the fund goes rotten, I'll be forced to pay off that loan.

[@user-fv6ke8vv2z]

Good for you - I do a similar strategy - however - I’m in the game forever, and I’m constantly compounding my dividends and increasing my share count - to increase my income - and so far - this works like a charm…. - wishing you all the best 😊

[@sofiakhan73]

Hi sir...may I please know that u show us only halal investments...please reply...

[@DanishGhaziCPA]

If you're still looking for help, feel free to reach out over here: asqme.com/@DanishGhaziCPA

[@ucheakudigwe1355]

Why does the management fee say 0.65% but it is actually 2.09% for HDIV. Also, is the management fee still the same ?

[@clintbaker7329]

Leverage vs no leverage

[@James_48]

Young investors should be staying far, far away from these investments. All it should take is a quick look to compare how these perform against the basic index funds, such as VFV to realize that these are not at all useful in the early investment stages. Where they have some utility is generating income in retirement. But, in order to keep pace with inflation it is necessary to reinvest 20 - 40 % of the income back in so that the income keeps rising with inflation. Also, the recent distribution drops and high turn over of the resident holdings in HYLD should be huge red flags for how this fund is going to depreciate over time, and lower distributions - all of these events are wealth killers that should not be ignored.

[@James_48]

I should add that, while many investors are very reluctant to embrace the idea of selling shares for income, whether in retirement or not, portfolio visualizer easily demonstrates while doing so, again with an example like VFV, is far more lucrative than using any of these CC ETFs discussed here. Buyer beware - you'll need your income to last 20 - 30 years or more, and while this looks sooo good up front, 10+ years from now there could be serious regrets.

[@Dividend-Shark90]

Nothing is guaranteed in life, multiple dividend increases for both HDIV and HYLD this year already. Of course, an index-based ETF will provide better total return, but hopefully the year you retire is a green year to sell stocks off for income. Also, if a "20 Yr old" wanted to do income investing so they can retire 10, 15, or 20 years early why shouldn't they? Total return $$$ is great but there is no price you can put on your time and freedom that is an incalculable number and a return you can never get back.

[@richardfortin8208]

So they charge 0.65% per month fee or 7.8% year! Do your math, is it a great deal... We should start an ETF pays 30% yield but charge 2% per month, people will be dumb enough to buy it lol

[@MrProfdeChimie1]

Am I wrong or it is 0,65% annually ?

[@richardfortin8208]

@@MrProfdeChimie1 Not sure... they don't mention yearly. I know MER is charged yearly but this is a fee.

[@moresugartradercc2744]

it is per year not monthly

[@ananditagangwar9988]

Good video but you're a novice. A very important factor to CC ETFs is tue downside protection. The SPX may fall 30%. HYLD will not. That's what COVERED CALLS do.

[@thanos-1834]

HOW ON EARTH HMAX MAKING 13% WHEN CANADIAN BANKS DONT GIVE ANY JUICY PREMIUM AT ALL ???