BMO Covered Call Canadian Banks ETF T.ZWB

Update

[Rainyday]

Since the last post in February ZWB has dropped from $21.50 to about $18.75 (ex-dividend). That's about a 13% decline and the yield has increased from 6.1% to 7%. Over the past 5 years the dividends have increased about 7% per year but the share price has only gone up about a dollar as the market was good (except for March 2022) and investors weren't attracted to covered call ETF's in a strong market. ZWB now looks quite attractive at this price in these markets.

[Rainyday]

OOPS - (except for March 2022) should have been 2020. This ETF is now trading @ $19 and has a 6.9% yield. 

[AnalogueMan]

A bit off topic BUT a friend bought into ZWB for the dividend - he's convinced ZWB pays a ~6% quarterly dividend NOT ANNUAL. Wot The .... At ~$19.00 / share, paying a ~6% annual dividend the div would come out at ~$1.30 / share. annual or about $0.34 monthly Correct ??? 

[AnalogueMan]

S O R R Y  this question was answered back in Feb.

[ronaldco]

Dividend is 11cents monthly, 1.32 per year which equals 7% annual dividend on current price of 18.65.

[marcrobert]

half of the dividend is return of capital, so actual yield from underlying investments is under 4%, the rest is your own capital back to you, which lowers your acb in a non reg account by the way,. which means you pay more cap gains tax at sale. this is the classic strategy of bmo funds and others - pay a lot distributions, make it look like the investments are generating 7+% yield, but the unit

[ITSUP2ME]

Capital gains tax in a TFSA?

[EnoughBull]

Unless you`ve get the stock on TFSA all is yours 7% no any tax deduction. Its unwise not to inest on TFSA

[EnoughBull]

ZWB monthly paid dividend $0.11 per month. Last Dividend was $0.12 Total annually $1.32 or more if increased, Which gives you approx. 7% annually. if you invest $20,000 and get approx. 1000 shares you`ll end up with profit of ~$1440 in one year plus let hope increase in share price. Thats twice as much as GIC offers around 3-4% annually I hope this helps. Cheers