If you’re looking for a great dividend but don’t know what to invest in, an exchange-traded fund (ETF) might be a great option for you. The BMO Equal Weights REITs ETF (TSX:ZRE) gives you good diversification with some of the biggest-name REITs on the TSX in its portfolio. Not only will you get some good stability, but you’ll be able to secure a great dividend as well.
BMO Equal Weights REITs pays a dividend of more than 4.7%, which is one of the better, safer payouts you can find. What makes REITs appealing to invest in is their consistent top line and recurring revenue which ensures you won’t see wild fluctuations from one period to the next.
This ETF will allow you to invest in office, industrial, and residential spaces, ensuring that you aren’t overexposed to one segment of the market.
Most of the stocks have a portfolio weight of less than 6%, with Dream Industrial Real Estate Investment Trust (DIR.UN) making up the biggest piece of it at around 11%. Year to date, the ETF has risen by 3%. And while that might seem unexciting, it’s much better than the losses that the TSX has accumulated thus far.
The ETF only charges a nominal management expense ratio of 0.61%, meaning that you won’t see it make a big dent in your overall returns.
With the markets being increasingly bearish, now more than ever investors will have to be extra careful not to pick overvalued or highly-speculative investments. The stocks in this ETF trade at modest multiples and make for a great mix of assets to add to your portfolio.