BMO Dividend ETFs: Global Investing for Canadians
- As the middle of 2025 approaches, a simple, globally diversified dividend ETF trading in Canadian dollars remains elusive.
- BMO's dividend ETFs prioritize a rules-based strategy emphasizing dividend growth, yield, and sustainability, according to David Dierking, formerly of ETF Focus.
- The BMO dividend ETFs begin with a broad universe of stocks, excluding REITs and preferred shares.
Boost your portfolio with BMO Dividend ETFs.Discover how to construct a global, high-yield dividend portfolio right now using a strategic, do-it-yourself approach, ideal for Canadians in mid-2025. This guide unveils a tailored selection of BMO ETFs, prioritizing dividend growth and sustainability. By focusing on a rules-based strategy, investors can optimize tax efficiency and potentially achieve an 8.85% compound annual growth rate (CAGR).News Directory 3 provides actionable insights to help you build a diversified portfolio. Optimize your investments with a breakdown of key allocations. Want to know the next steps in managing and expanding your global dividend strategy? Discover what’s next …
Build Your Own Global Dividend ETF Portfolio with BMO
Updated June 01, 2025
As the middle of 2025 approaches, a simple, globally diversified dividend ETF trading in Canadian dollars remains elusive. For investors seeking exposure to global dividends, a do-it-yourself approach using BMO Global Asset Management ETFs offers a viable solution.
BMO’s dividend ETFs prioritize a rules-based strategy emphasizing dividend growth, yield, and sustainability, according to David Dierking, formerly of ETF Focus.
The BMO dividend ETFs begin with a broad universe of stocks, excluding REITs and preferred shares. A forward-looking, five-year grading system assesses each company’s dividend payout, evaluating the payout ratio and dividend sustainability. Companies receive a score based on this trend, with recent years weighted more heavily.
The ETFs select the top 50 or 100 companies with high dividend yields that also pass sustainability and growth screens. Weighting is primarily based on yield, with caps by sector and individual stocks. The list of eligible companies is reconstituted every December, and portfolios are rebalanced in June.
This data-driven process aims to avoid yield traps and pursue dividends with discipline.
To construct a dividend-focused global portfolio,consider the following allocation: 50% to the BMO US Dividend ETF (ZDY),30% to the BMO International Dividend Series Units ETF,and 20% to the BMO Canadian Dividend Series Units ETF.
This allocation aligns with global equity market weights, with a slight tilt toward Canadian stocks to reduce currency risk and improve tax efficiency.
The portfolio’s weighted average management expense ratio (MER) is approximately 0.37%, with a weighted average yield of about 2.93%. From January 2016 through April 2025,this ETF combination,rebalanced annually,achieved a compound annual growth rate (CAGR) of 8.85%.
holding this portfolio within a registered account like a Tax-Free savings Account (TFSA) or Registered Retirement Savings Plan (RRSP) is recommended to minimize tax implications from dividend distributions.
What’s next
Investors should monitor their portfolio’s performance and rebalance annually to maintain the target asset allocation and ensure continued alignment with their financial goals for global dividend investing.