The Big Six banks may indeed start to rise in the very near future. And as well they should, given that these banks have done so in every single downturn for the last 100 years or more! But there is still a problem I’m not a big fan of when it comes to investing in the Big Six banks.
Give me that dividend!
When it comes to investing in the Big Six banks, there is the issue of receiving quarterly income over monthly income. That can lead some investors (me included) into looking into monthly dividend stocks that perhaps are less secure than the Big Six banks.
After all, right now, the banks aren’t doing so well. Yet I still want to invest in them for long-term returns, which I know are coming. The thing is, right now, I also want dividend income — hence why I discovered this amazing hack around it.
Less a hack and more of a discovery
While this does technically hack the system of investing in the Big Six banks, you’re not doing anything weird or, worse, illegal. Instead, I’m recommending investing in an exchange-traded fund (ETF). One that focuses on Big Six banks, or other strong companies but also provides a monthly dividend.
By doing this, you’re getting exposure not just to one or two banks but all the Big Six. Further, there are other options out there as well that provide you with exposure to other strong companies in stellar industries. So, no more worrying about waiting around for quarterly income. And no more investing in stocks that may not deliver on returns, even with a high dividend yield.
Instead, investors can feel safe and secure with this investment in an ETF that will focus on future growth, as well as monthly payments. And this is the one I would pick on the TSX today.
Consider FIE ETF
One of the best options out there right now is iShares Canadian Financial Monthly Income ETF (TSX: FIE). This monthly dividend provider currently offers a high yield of 7.97% as of writing. That comes to $0.48 per share annually, or $0.04 per share monthly. That may sound small, but the investment is small as well.
Right now, this ETF provides investors with access to this humongous portfolio of top income providers, for just about $6.50 per share as of writing. In it, you have the Big Six banks, asset managers, and even other iShare products. All are managed by a team of portfolio managers that are in your best interest.
Further, shares are up about 8% as of writing year to date. So, already you’re looking for more growth in the future. This makes it the perfect option for investors looking for a great way to make monthly cash, while still seeing their portfolio perform long term. And that can be used for those holiday gifts or reinvestment. So, enjoy this “hack.” You earned it.
