@jahrooshshalom There's no guarantee...once interest rates decline so will these rates ..also many may bail out and start to invest into equities again, causing the ETF to decline in price as well.
@mpaper345 ZEB.TO is an ETF made up of Canadas big banks. Its yield is just under 5% a year and is paid monthly. Its dividend growth is also really fast so year over year you should get more and more money
@jahrooshshalom The dividend never has gone down though. And I’m not talking yield, the actual cash amount of the dividend doesn’t dip and in fact increases year over year despite any dips in the stock price.
@jahrooshshalom You’d break even if you decide to sell your stock then and pull out. If you’re looking for passive income then you’d just keep your money in and keep getting your dividend. Like any stock, it goes up and down but in the long run it goes up.
It went up almost 9% the past year, almost 24% over the past 5 years and about 65% over the past decade despite having several significant slumps in the price during which it still paid a consistent and growing monthly dividend and it recovered from all price dips
@emcee19 Very fair point. Thank you for the explanation.
I usually use these types of holdings to generate a yield while the value of the position is used to maintain margin for cash secured puts. So I more or less need the price to stay consistent to avoid margin calls
