Consider This Canadian Dividend ETF in November

The S&P/TSX Composite Index has started fast in the month of November. It gained another 75 points on November 4 after a triple-digit gain on Friday. Today I want to focus on an ETF that is focused on Canadian dividend stocks.

This is a solid option for investors who are on the hunt for stability. Unsurprisingly, it is heavily weighted in the financial and energy sectors.

The iShares Canadian Select Dividend ETF (TSX:XDV) has climbed 19.1% in 2019 as of close on November 4. This comes after a 12.5% drop in 2018.

Mirroring the performance of the broader TSX, the ETF got off to a fast start this year, but its gains have been muted in the late summer and early fall.

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Some of the top holdings in the ETF include Canadian Imperial Bank of Commerce, which is the fifth largest of the “Big Five” Canadian banks.

However, CIBC stock boasts a hefty dividend in comparison to its peers. Royal Bank, Bank of Montreal, and Scotiabank are the three next highest weightings. BCE stands as the only non-bank holding in the top five.

Investors looking to temper down the risk in their portfolios should consider this ETF in early November. It also boasts a monthly dividend payout of $0.09 per share, representing a 4.4% yield. With lower interest rates on the horizon I love these stable income-yielding equities ahead of the New Year.