BMO Covered Call Utilities ETF T.ZWU

@ the Bell: TSX reaches 3-week high

[Jonathon Brown]

The TSX climbed to its highest in three weeks as investors raised bets around a U.S. Fed rate cut after last’s week soft payrolls data. read article.

[Jonathon Brown]

While energy gains propel the TSX, industrials get attention from the EV market and investors navigate another week of mining sector activity. read article.

[DeanEdmonton]

Franman - can you not read. Yes the underlying companies pay 5%, the fact ZWU is returning over 70% of their payout as a return of your own money means they are losing their azz on the covered call

[Franman184]

The underlying companies pay about 5 percent and the extra income comes from the covered call. If we have volitiltiy the covered call showed be good as well. Should the underlying companies go up in

[DeanEdmonton]

Just checked, for 2023. Copy and paste from a Buddy of mine's T3. It is actually a lot more than 50%, it is 74%. 2023 T3 slip (original) from BMO COVERED CALL CANADIAN BANKS ETF Box number Box

[DeanEdmonton]

Mbuch - Take a Look at the composition of this dividend, 50% is return of capital. That is your oen money, not really a dividend. They can keep the dividend here indefinitely by continuing to raise

[Panic54321]

The dividend on this can fluctuate, but it won't fluctuate a crazy amount.  It can go up and down with the market and the underlining securities that it holds.  It depends on the

[mbuch]

Seems to be to high for too long in my opinion.  But am still considering adding some more shares. Should I wait to see if it gets cut and wait for the dip in share price?  

[saddlerack]

It was an error and has now been reversed :(

[saddlerack]

I hold ZWU in 3 accounts with TD.  This morning I noticed that the distribution payed for December was 10 X what it should be.  I can't find any news of a special distriubtion.  Is

[Puma1back]

it was the 13th - excerpt from the Globe:   CIBC World Markets is the latest research team to release their 2024 outlook, “Particularly impressive this past year was the ability of

[Puma1back]

Anyway, this ETF got put in the  Top 10 ETF's for 2024 in the Globe.   

[Puma1back]

i thought they bought more out of money calls anyway, i suspect the call portfolio was not unduly loaded at the lows of October.  

[AndrewWiggin]

Looks like a lot of calls will be exercised.  Does anyone know if ZWU and other covered call etf's immediately repurchased the shares that had the calls exercised?

[DeanEdmonton]

dogacat - you aren't even collecting a 4% dividend as over 50% of the monthly payment is return of capital. That is your OWN MONEY buddy. Buy TRP, PPL etc, get a true 6-8% dividend and WAY better

[dogatcat]

Hold your nose and buy.  Collect the dividend every month and just keep buying.   

[ThisIsYerChance]

I know this is yer chance or whatever, but how will ya take a dividend to a bank all day every day when it only gets paid once a month?