iShares TSX 60, Invesco QQQ & BMO Canadian: 3 Dividend-Yielding ETFs To Explore

Summary

  • The iShares S&P/TSX 60 Index ETF units have recovered over 43 per cent since the COVID-19 caused a market crash on March 24.
  • The iShares ETF delivers a positive return on equity and a positive return on assets of ~12 per cent and 3+ per cent, respectively.
  • Units of Invesco QQQ Index fund have swelled by over 30 per cent in the last six months.
  • BMO Canadian High Dividend Covered Call fund made it to TMX’s top dividend stocks that have the highest dividend yields on the TSX and the TSX Venture.

 

Exchange-Traded Fund (ETF) invests in a portfolio of securities and often tracks benchmark indices. This money of investors is managed by a fund manager and can be invested in any number of industries or sectors. An ETF unit trades throughout the trading day, just like stocks are purchased and sold on the exchanges.

There are more than 700 ETFs are listed on the Toronto Stock Exchange (TSX). Let us look at the following ETFs’ unit performance:  iShares S&P/TSX 60 Index ETF (TS: XIU), Invesco QQQ Index ETF (TSX: QQC.F), and BMO Canadian High Dividend Covered Call ETF (TSX: ZWC).

 

 

iShares S&P/TSX 60 Index ETF (TSX: XIU)

 

BlackRock Inc. investment management company offers iShares S&P/TSX 60 Index ETF units. As per the company, this is the first ETF in the global market, and it has been trading since 1990. It invests in the TSX 60 index, which includes the top 60 stocks listed on TSX.

Units of iShare S&P/TSX 60 Index ETF have surged by over 11 per cent in the last six months. The ETF has recovered over 43 per cent since the COVID-19 caused a market crash on March 24. The ETF is trading flat in the last three months.

XIU’s current market capitalization is C$ 9+ billion.

As per data on the TMX website, iShares’ current price-to-book (P/B) ratio is 1.83, and the price-to-cash flow (P/CF) ratio is 10.20. The ETF delivers a positive return on equity (ROE) and a positive return on assets (ROA) of 11.85 per cent and 3.07 per cent, respectively. Its current price-to-earnings (P/E) ratio is 16.20.

iShares S&P/TSX 60 Index ETF is trading among the most volume active stocks across the TSX and the TSXV with a 10-day average trading volume of nearly 4.54 million units.

The ETF holds a current dividend yield of 3.157 per cent. It pays a quarterly dividend of C$0.189 per share, as per the data available on the TMX Money portal.

 

iShares TSX 60 Index ETF is currently trading at C$ 24.80 per unit.

 

 

Invesco QQQ Index ETF (TSX: QQC.F)

 

Invesco QQQ Index ETF is an exchange-traded fund listed on TSX. The ETF trades on the performance of the NASDAQ - 100 Currency Hedged Canadian Dollar Index that is formed to represent returns for the NASDAQ - 100 Index. Invesco Ltd. (NYSE: IVZ) is an international independent investment management company. The company generates its revenue from investments in ETFs.

Units of Invesco QQQ Index fund have swelled by over 30 per cent in the last six months. The fund has regained over 68 per cent since the COVID-19 pandemic caused crash on March 21. In the last three months, the ETF has increased by nearly 8 per cent.

Invesco ETF’s current market capitalization stands at C$ 313.21 million.

As per data on the TMX Money website, Invesco’s price-to-book (P/B) ratio is 7.80, and the price-to-cash flow (P/CF) ratio is 20.10. The fund offers a positive return on equity (ROE) and a positive return on assets (ROA) of 31.52 per cent and 11.41 per cent, respectively. Its current price-to-earnings (P/E) ratio is 34.12.

Invesco QQQ Index fund has a current dividend yield of 0.488 per cent. It pays a quarterly dividend of C$0.104 per share, as per the data available on TMX.

Invesco QQQ Index fund is currently trading at C$ 97.88 per unit.

Six-month Invesco QQQ Index fund (Source: Refinitiv, Thomson Reuters)

 

 

BMO Canadian High Dividend ETF (TSX: ZWC)

 

BMO (Bank of Montreal) Canadian High Dividend Covered Call is an exchange-traded fund listed on TSX. The fund provides its unitholders with a portfolio of high dividend-paying Canadian companies to generate income and to provide long-term wealth appreciation.

BMO Canadian High Dividend Covered Call fund holds a current dividend yield of 8.25 per cent. The fund pays a quarterly dividend of C$0.11 per share, as per TMX data. This fund has been ranked among TMX’s Top Dividend stocks that have the highest dividend yields on the TSX and the TSX Venture.

Units of this fund have soared by over 13.23 per cent in the last six months. The fund has recovered over 39 per cent since the COVID-19 pandemic caused collapse on March 24.

Invesco’s current market capitalization stands at C$ 688.16 million.

As per TMX data, this ETF’s price-to-book (P/B) ratio is 1.43, and the price-to-cash flow (P/CF) ratio is 7.20. The fund delivers a positive return on equity (ROE) and a positive return on assets (ROA) of 12.02 per cent and 2.71 per cent, respectively. Its current price-to-earnings (P/E) ratio is 13.90.

Its current dividend yield is 8.25 per cent.

This fund is trading at C$16 per unit at the time of writing this.

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