BMO Covered Call Utilities ETF T.ZWU

@ the Bell: Markets come roaring back

[DeanEdmonton]

BMO must have changed out the team that looks after these two covered call ETFs becuase the results are sure no where near what they used to be. Not holding any of either for the past while, and am

[Jon Brown]

After a few lacklustre sessions, Canada's main stock index joined markets across the globe in a higher trading day on Friday read article.

[Jon Brown]

Equities in Canada’s largest edged up on Thursday, all over a pause in US rate hikes and the passing of a bill to suspend the debt ceiling. read article.

[Jon Brown]

Investors often keep focused on the most consistent plays, when times of renewed uncertainty rears its head in the markets. read article.

[DeanEdmonton]

Good catch, I hadn't seen that. Not suprising when 50% is return of capital. Erodes the fund pretty wquick. No wonder it has taken another SP dump lately. Glad I sold 95% of this back when it was

[ANALOG GUY]

I thought my stock streamer was wrong  but no, they have reduced the dividend to .07 well that sucks  paid .08 for years 

[ANALOG GUY]

Dean, check out my post on "ENCC" no ROC at all in 2022 distributions  Big time yield  Energy ETF that moves up and down with the oil price  Added 3000 yesterday at  

[DeanEdmonton]

Analog Guy - Don't know if this helps but here is a high level explanation of ROC. The Return of Capital lowers your average cost base on the share, and this is calculated in Dec and applied by

[ANALOG GUY]

I've always thought Covered Call ETFS are a Yield Enhancer not a Capital Enhancer. Return Of Capital (ROC) is something that I've seen smart people explain and I'm still not sure I

[DeanEdmonton]

For 2022 ZWU paid out 8 cents a month dividend, showing just over an 8% yeild. However, for 22022, almost exactly half of that payout was return of capital. That is them giving you back your own money

[DeanEdmonton]

So how many picked up the 18 cents, 2%, since march 28th to today.

[DeanEdmonton]

Buy today you get an 8 cent a share dividend, for the month.

[DeanEdmonton]

Makes for a very nice monthly payment at .08 Cents per share per month. Handy spot to park some cash while waiting for the markets to roll out of the doldroms.

[ANALOG GUY]

  yes sir Been accumulating  10,000 shares in a cash account  $9600/yr dividends  8.15% is my average  tax efficient  WAY better than a GIC pay me

[DeanEdmonton]

Because of the covered call strategy to boost the monthly payout, you aren't going to make any SP appreciation in a rapidly rising market. However, if you need the dividend yield to live on, this

[Albertaproud]

Thanks for the update.

[pjn0987654321]

For 2021 it was eligible dividends   0.368472 capital gains   0.016380 return of capital   0.520920 foreign income   0.080328 foreign tax paid   

[Albertaproud]

Does anyone know how the dividends are treated for this etf. Are they eligible for the Canadian dividend tax credit? Thanks,