Blue chip dividend stocks have taken off lately, but there are still opportunities to grab yields in the 5- to 8-per-cent range.
Exchange-traded funds holding dividend stocks offer a way to get a taste of high-yielding blue chips, with risk minimized through diversification. Consider the). All have yields of roughly 5.5 per cent and up, while FCCD as a whole has a trailing 12-month yield of 4.5 per cent. Dividend ETFs are a proven, popular way to hold a diversified portfolio of dividend-paying stocks, but there are some negatives. For one thing, fees can be higher than for traditional Canadian equity index ETFs. Also, you don’t receive pure dividend income, as you would if you owned shares directly. Dividend ETF monthly payouts typically include a small return of capital.