Not every dividend stock is built for the long haul. Some cut payouts when things get tough. Others stagnate for years. When I invest for financial freedom, I focus on stocks that not only pay above-average yields but also have a track record of increasing those payouts over time. Growth is what keeps income beating inflation and keeps you sleeping well at night.
With $50,000, you don’t want to put all your eggs in one basket. Owning just a handful of stocks leaves you exposed to sector risk, dividend cuts, and management missteps. That’s why I’d spread that money across at least two dozen names. But buying them one by one can get messy. A dividend exchange-traded fund (ETF) is a better idea.
That’s where Hamilton CHAMPIONS™ Canadian Dividend Index ETF (TSX:CMVP) comes in. It could be the perfect all-in-one foundation for a long-term, low-maintenance income strategy.
What Is CMVP?
CMVP holds an equal-weighted portfolio of blue-chip Canadian companies with long histories of stable and growing dividend payments. Instead of leaning heavily into the biggest banks or energy names, it spreads your money evenly across a portfolio of dividend leaders, all of which have increased their dividends for six years or more without a single cut.
It does this by tracking the Solactive Canada Dividend Elite CHAMPIONS Index, a rules-based benchmark focused on consistency and quality. The average company in the fund has raised its dividend at a 10% annualized rate over the past decade, and the average market cap is about $73 billion. That means you’re investing in established, reliable companies.
Historically, the index behind CMVP has outperformed the TSX 60, while offering higher income, lower volatility, and better downside protection. It fell less in bear markets and recovered faster than traditional broad Canadian equity benchmarks, thanks to the strength of the dividend growers it holds.
How much income does CMVP pay?
The most recent monthly distribution in July was $0.046 per share. At a share price of roughly $17, that works out to an annualized yield of around 3.25%, assuming that the payout remains steady.
That may not sound huge, but CMVP isn’t about chasing yield. The key here is dividend growth. When you reinvest those monthly dividends into more shares, and those shares keep growing their payouts year after year, you create a snowball effect. Over time, your income grows on its own, and your capital compounds as well.
This is how you build a truly worry-free income stream. You don’t need to pick winners or chase headlines. You just need consistent dividend growth, reinvestment, and time. CMVP makes that simple. As a bonus, CMVP charges a 0% management fee through January 31, 2026, and 0.19% thereafter.
