The
Canadian universe of quality dividend paying stocks is relatively small. One
very good passive strategy is
iUnits Dividend Index Fund (XDV).
The screening is done for you, the costs are very low, and you get excellent
diversification.
Other alternatives include iUnits
S&P/TSX Financial E.T.F. (XFN)
which provides diversification
across the financial sector, Utility
Corp. (UTC.C)
which provides diversification
across the utilities sector, NewGrowth
Corp (NEW.PR.B)
and (NEW.A)
which provides diversification
across the banking and utility sectors. Sixty
Split Corp (SXT.PR.A)
and (SXT)
is diversified
across the companies that make up the S&P/TSX 60 Index. Each
of these options should be examined closely so that their characteristics
are understood.
If you choose an active strategy, the ways to screen for candidates to are somewhat limited. The best screening tool requires you to be a client of TD Waterhouse. The Globe and Mail provides a screen on yield but then you must have access to additional data to assess the stocks identified by that screen.