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BMO Covered Call Utilities ETF T.ZWU

Alternate Symbol(s):  BMMVF

The ETF seeks to provide exposure to the performance of a portfolio of utilities companies to generate income and to provide long-term capital appreciation. To achieve investment objective the ETF will primarily invest in and hold the equity securities of Canadian companies widely recognized as utilities companies, which may also include telecommunication and pipeline companies, and use derivative instruments to hedge U.S. dollar securities back to the Canadian dollar. Depending on market volatility and other factors, the ETF will write covered call options on these securities. Under such call options, the ETF will sell to the buyer of the option, for a premium, either a right to buy the security from the ETF at an exercise price or, if the option is cash settled, the right to a payment from the ETF equal to the difference between the value of the security and the exercise price.


TSX:ZWU - Post by User

Comment by DeanEdmontonon Apr 14, 2024 2:04pm
192 Views
Post# 35988299

RE:How sustainable is this dividend?

RE:How sustainable is this dividend?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 name Box value
18 Beneficiary code Individual
21 Capital gains 28.37
23 Actual amount of dividends other than eligible dividends
26 Other income
30 Capital gains eligible for deduction
32 Taxable amount of dividends other than eligible dividends
39 Dividend tax credit for dividends other than eligible
dividends
49 Actual amount of eligible dividends 512.84
50 Taxable amount of eligible dividends 707.72
51 Dividend tax credit for eligible dividends 106.30
Other information
Box number Box name Box value
42 Amounts resulting in cost base adjustment 382.65

mbuch wrote:

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?
 




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