11-15-2019, 02:11 AM
Beware to check the dividend payout history. The simple Fwd or ttm yield number could be misleading.
Recently I am studying to start my first Canadian dividend ETF position and XGRO.TO was in my observation bucket.
And until tonight I really got chance to spent time to read the details of this ETF further, and found the dividend yield ratio is bit misleading.
The Fwd yield is about 6% now which look too good to be true. It's true before I open up the dividend history and then realized the actual yield is less than 2% if we ignore the noise that the ETF occasionally bump the yield likely every 18 months or 2 year or so. Which makes the yield really unstable depends on the timeframe we calculate.
Recently I am studying to start my first Canadian dividend ETF position and XGRO.TO was in my observation bucket.
And until tonight I really got chance to spent time to read the details of this ETF further, and found the dividend yield ratio is bit misleading.
The Fwd yield is about 6% now which look too good to be true. It's true before I open up the dividend history and then realized the actual yield is less than 2% if we ignore the noise that the ETF occasionally bump the yield likely every 18 months or 2 year or so. Which makes the yield really unstable depends on the timeframe we calculate.