Vanguard and Blackrock

 

Nearing mid July, 2022 ... gas prices are easing from some from their highs as the price of oil flirts with the $100 USD range. That seems to be the only break in necessary expenses on my end as the price of groceries continue to inch up. Interest rates are expected to hike again this week hitting folks with mortgages the hardest no doubt, if they are on a variable interest rate term or nearing a "renew" of their terms

Central Banks, with their strategies to combat high inflation are not winning yet and when there is eventually some curbing of inflation ... will grocery prices drop in tandem? No

People grumble about it but carry on seeking the happier things in life and entertainment or too busy with family, around the house and work to have time to dwell on it all.

Most folks seek bargains, discounts or a good deal. Being involved in the dividend paying stock market ... I see stocks and ETF's that are rare bargains before the Markets rebound once again. It all looks like a rewind of the big drop of March, 2020 when the pandemic started here in Canada and the US.

Looking at the Vanguard and Blackrock ETF's, they have a long lineup and with some being very popular with folks seeking dividends and low management fees.

There a lot of articles, books and media comparing the companies products and strategies and how to benefit from them.

Most Bloggers I read that focus on dividends, have a portfolio of stocks but usually have one or a few ETF's from Vanguard and/or Blackrock as an addon.

XEI - iShares S&P/TSX Composite High Dividend Index ETF has a Holding of 75 popular stocks with a yield of 3.94% and pays monthly. XEI from Blackrock has some steady growth between the dips like March, 2020 and currently. 

With Vanguard, VDY - FTSE Canadian High Dividend Yield Index ETF also pays a monthly dividend and has a 3.46% yield with 47 popular yielding stocks in Canada. 

Both ETF's come with a low 0.22 MER or fees that management charges. A good savings off the "bottom line' compared to the high management fees out there.

I think the drawback with these ETF's is that the cash distributions fluctuate while some investors prefer to have the same amounts in dividends each month/quarter. Sector and company weighting in the Holdings may not be to the liking of some. But, overall they work and provide a dividend income if desired and there's growth looking at the 3 and 5 year charts.

Those are two personal picks I like while there are a variety of choices to choose from getting into the US, International markets and sectors allowing for risk tolerances.

Dale from Cut The Crap Investing has a great post here about XEI and VDY

Halftime 2022

 

We are into the 2nd half of 2022. Are things improving in the stock and crypto markets?

Unfortunately no, as fear continues to grip the Markets on a daily basis as rehashed news about inflation, corrections and interest rates circulate in the news. Predictions are, things will stabilize some by the end of the year but they are just that ... predictions, although I hope so.

Although the electric vehicle thing is getting more popular by the day, oil and natural gas continue to be one of the rulers of the economy. Demand and supply, plus shortages in areas like Europe due to Putin's war on Ukraine. has spiked prices quickly. That will eventually even out but takes time. 

Europe is looking to Canada now and other countries ... we need your natural gas. It is coming up in the news here now about how Canada can send over it's excess natural gas. Pipeline under the Atlantic Ocean or a fleet of supertankers has come up. Both expensive ventures being tossed around.

All that being out of the average citizen's control of course, forced to pay more for the essentials. Meanwhile, I continue to focus on building a dividend stock portfolio and ignore all the fear mongering out there.

BMO, I figure pays out some of the highest cash distributions with their line up of ETF's among the top banks in Canada, depending on sector and categories. 

In that lineup I scroll down to "Specialty Income" and focus on Bank and Utility related like ZWB, ZWU respectively and ZWC : BMO Canadian High Dividend Covered Call ETF with a selection of top companies and banks in it's Holdings.

In the "Canadian Sector", there's also a good selection of 'Equal Weight" ETF's there for folks who don't prefer "Covered Call" ETF's or seeking a mix of BMO management strategies.

I prefer reliable income producing ETF's that pay monthly and are reasonably cheap around the $20 range to buy on a consistent basis. Over time, a growing monthly cash dividend builds up.

In my next post, I'll touch on some popular ETF's with Vanguard and BlackRock Canada. They have some cheap management fees where they seem to be in competition to attract/retain more customers with these monster investment companies.

In the Bitcoin dominated world, it's like waiting for a snowstorm (Crypto Winter?) to pass by while Whale outfits like FTX and Binance help or buyout outfits in financial trouble. Until that clears and the sun shines once again, there won't be a lot of upward movement in coin prices for now.