The Evolution of FTSE Canadian High Dividend Yield Index and VDY: A Comprehensive Analysis of Dividend History and Growth

Author Image By Michael D Ashley

VDY - Market Position

Ticker Symbol Product Type Asset Class Strategy Payment Frequency Geographic Focus Expense Ratio Sponsor
VDY ETF Equity Dividend ETF High Dividend Yield Monthly Canadian 0.22% Vanguard

VDY Overview - The Vanguard FTSE Canadian High Dividend Yield Index ETF

The Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY) is designed to provide investors with income from dividend-paying Canadian stocks while offering the potential for long-term growth. This passively managed fund seeks to track the performance of the FTSE Canada High Dividend Yield Index, which consists of Canadian companies that demonstrate a high dividend yield.

VDY invests in a diversified portfolio of equity securities of Canadian companies, focusing on those with market capitalizations typically associated with larger, established firms. With an expense ratio of just 0.22%, VDY offers investors a cost-effective way to gain exposure to high dividend yield stocks within the Canadian market.

Investors interested in VDY can track its performance and dividend history through various financial platforms, ensuring transparency and accessibility to crucial information. As of Apr 25, 2024, you can find VDY's average yield on Morningstar. Additionally, people also follow VDY's latest stock price and dividend history on platforms like TipRanks.

While past performance is not indicative of future results, VDY's focus on high-quality, dividend-paying Canadian stocks may appeal to investors seeking both income and potential capital appreciation over the long term.

VDY - Price / Yield

VDY - Portfolio and Asset Allocation

The Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY) is a fund focusing on large-cap, dividend-paying stocks across various sectors within the Canadian market. The top 10 holdings reveal a mix of companies from different industries, such as Financial (Royal Bank of Canada, Toronto Dominion Bank, Bank of Montreal), Energy (Canadian Natural Resources, Enbridge Inc., Suncor Energy), and Communication Services (TC Energy Corporation).

The sector breakdown further reinforces the fund's diversification strategy, with investments spread across multiple sectors. Financials (56.16%) and Energy (30.08%) make up the largest allocations, followed by Communication Services (5.87%) and Utilities (5.39%). This sector distribution suggests that the fund managers seek to balance income generation and growth potential while managing risk through exposure to a variety of industries.

The presence of companies like Royal Bank of Canada, Toronto Dominion Bank, and Canadian Natural Resources among the top holdings indicates a focus on established, dividend-paying companies with strong market positions within the Canadian market. These companies often have a history of consistent dividend payouts and are generally considered to be more stable investments.

However, it's important to note that the fund also has exposure to sectors like Communication Services and Energy, which can be more volatile and sensitive to market conditions. Nonetheless, the relatively lower allocations to these sectors suggest that the fund managers are cautious about overexposure to potentially risky areas.

Top 10 Holdings

As of April 24, 2024, the top 10 holdings of The Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY) are:

Name Weight
Royal Bank of Canada 14.03%
Toronto Dominion Bank 10.62%
Canadian Natural Resources 8.08%
Enbridge Inc. 7.57%
Bank of Montreal 6.98%
Bank of Nova Scotia 6.18%
Suncor Energy 4.76%
Canadian Imperial Bank of Commerce 4.54%
Manulife Financial 4.50%
TC Energy Corporation 4.10%

Asset Allocation

The Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY) has the following asset allocation as of April 24, 2024:

Sector Weight
Financials 56.16%
Energy 30.08%
Communication Services 5.87%
Utilities 5.39%
Basic Materials 1.26%
Consumer Cyclical 0.66%
Industrials 0.36%
Real Estate 0.22%

Dividend Yield and Distribution History

Section Details

VDY Dividend Data

The Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY) pays quarterly dividends. The most recent ex-dividend date was on March 15, 2024, with a dividend payment of $0.172763 per share on a date that is typically a few days after the ex-dividend date.

VDY Dividend Yield

As of April 24, 2024, the 30-day SEC yield for VDY is 4.57%. This means that for every $100 invested in the fund, investors would receive approximately $4.57 in dividends per year, assuming the yield remains constant.

VDY Dividend History

VDY has a history of paying quarterly dividends. The dividend payments may fluctuate based on the performance of the underlying dividend-paying stocks held by the fund.

VDY Dividend Growth

VDY's dividend payments are dependent on the dividend growth and performance of the underlying stocks in the fund's portfolio. The fund's investment strategy focuses on companies with a history of consistent dividend growth, which may contribute to increasing dividend payments over time. However, dividend growth is not guaranteed.

VDY Dividend Stability

VDY aims to provide a relatively stable income stream by investing in high-quality, dividend-paying Canadian stocks. However, the dividend payments are not guaranteed and may be affected by changes in market conditions or the performance of the underlying stocks in the fund's portfolio.

VDY - Chart

VDY - Comparative Analysis

Let's compare VDY with prominent competitors, focusing on key aspects like performance, fees, and strategy: (as of Apr 2024)

Investment Focus High-dividend-yielding Canadian stocks Canadian dividend-paying equities Canadian dividend-paying equities
Current Yield 3.5% 4.2% 3.8%
Expense Ratio 0.22% 0.22% 0.35%
Investment Strategy Passively tracks the FTSE Canadian High Dividend Yield Index Passively tracks the S&P/TSX Composite High Dividend Index Actively managed, focuses on high dividend yield
Strengths Low expense ratio, high dividend yield Similar expense ratio to VDY, slightly higher dividend yield Potentially higher dividend yield, actively managed
Weaknesses Less diversification compared to broader Canadian ETFs Similar diversification, potentially lower yield Higher expense ratio, actively managed

Dividend History (Last 5 distributions)

Ex-Dividend Date Cash Amount Record Date Pay Date
Apr 30, 2024 $0.176 May 01, 2024 May 08, 2024
Mar 15, 2024 $0.173 Mar 18, 2024 Mar 25, 2024
Feb 29, 2024 $0.179 Mar 01, 2024 Mar 08, 2024
Jan 31, 2024 $0.195 Feb 01, 2024 Feb 08, 2024
Dec 28, 2023 $0.306 Dec 29, 2023 Jan 08, 2024


Technical Analysis

Additional Information and Risks

The Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY) provides investors with exposure to Canadian companies offering a high dividend rate and potential for return. It covers a broad range of stocks, reflecting various earnings potential.

VDY is designed for trading purposes, providing data for Vanguard FTSE Canadian for informed decision-making. Its grade reflects its performance against the overall market. Although losses may be incurred, its fundamental metric suggests potential rise.

Investors can expect dividend growth and the option for stock dividend reinvestment. The market price reflects its chart's 1 x axis displaying time, making it an appropriate choice for those aiming for three years of cumulative return.

When purchasing, the number of shares may differ, but the purpose remains the same: to capitalize on growth rate and achieve an overall market return.

Managed by Vanguard Investments Canada Inc., VDY caters to reinvestment strategies and offers insights into brokerage performance. Its data ranges ensure appropriate analysis, guiding investors towards expected earnings and minimizing losses.