Best Dividend Mutual Funds - Pick the One That's Best for You

Best Dividend Mutual Funds – Pick the One That’s Best for You

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Are you interested in investing in dividends? Do you want to get your hands on some extra money derived out of mutual funds dividends? If yes, you have come to the right place. For those who are looking forward to dividend investments and do not have the time to construct a portfolio and analyze options, below is a complete list of some of the best dividend mutual funds.

Best Dividend Mutual Funds


In the lines that follow you will be informed about some funds which you can make a choice from:

iShares Dow Jones Select Dividend Index Fund

The iShares Dow Jones Select Dividend Index Fund is the largest dividend ETF situated in Canada. This broad index comprises of 30 dividend paying companies in Dow Jones Canada Index which have high yields. The positions awarded to companies are on the rules-based methodology and also includes an analysis of dividend growth, payout ratios and yield.

Although the ETF’s management expense ratio is not all that cheap but is still inexpensive when compared to the traditional mutual funds. The most prominent fact about this fund is that its financial accounts for more than 60% of the holdings which is a huge concentration for a single sector.

iShares Canadian Dividend Aristocrats Index

Known as one of the most stable and consistent performers, the iShares Canadian Dividend Aristocrats Index is considered to be the veteran in this category. All holdings under this fund must increase its ordinary cash dividend every year for five years.

However this ETF also carries some drawbacks. The first drawback that is associated with this ETF is that its yield is on a lower side and the management expense ratio is on the high end. Nevertheless the best part about iShares Canadian Dividend Aristocrats Index is that it comprises of a number of companies which are currently in growing stage which means the potential found in this lot is high.

BMO Canadian Dividend ETF

If you are looking for a fresh ETF which is new to the category then this is one is the perfect choice. It is the newest addition and uses a rule based methodology just like the iShares Dow Jones Select Dividend Index Fund. In order to allocate funds, this ETF takes into consideration, the yield, payout ratio and the dividend growth of three years. The biggest advantage that this ETF will bring to you is the highest yield and the lowest management expense ratio.

BMO Covered Call Dow Jones Industrial Average $CAD Hedged ETF

For those who like to have a little more, the BMO Covered Call Dow Jones Industrial Average $CAD Hedged ETF is the perfect choice. This fund will help you to generate additional income. Like any other index fund, this ETF comprises of 30 Dow Jones Industrial Average components. So if you are not worried about limiting your capital gains and want to play a little more, this one among the best dividend mutual funds is most appropriate for you.

Investing into mutual funds does not always result in a profit you desire, therefore weigh your options before making the right decision.

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