Enhanced Dividend Fund
How many managers have managed to outperform the TSX Dividend Aristocrats Index?

0.00%… until now.

Copy Cat Strategies

The following table contains the top 10 holdings for three of the largest Canadian dividend-focused funds as well as the top 10 weights in the TSX Composite Index.
(as at July 2018)

Top 10 Holdings
fund a fund b fund c tsx composite index
Toronto Dominion Bank Royal Bank of Canada Toronto Dominion Bank Royal Bank of Canada
Royal Bank of Canada Toronto Dominion Bank Royal Bank of Canada Toronto Dominion Bank
Suncor Energy Inc. Bank of Nova Scotia Bank of Montreal Enbridge Inc.
Bank of Nova Scotia Cash & Cash Equivalents Bank of Nova Scotia Canadian Natural Railway Co.
Microsoft Corporation Canadian Natural Railway Co. CIBC Bank of Nova Scotia
TransCanada Corporation Brookfield Asset Management Inc. Brookfield Asset Management Inc. Suncor Energy Inc.
Canadian Natural Resources Limited Enbridge Inc. Enbridge Inc. Bank of Montreal
Canadian Pacific Railway Limited Bank of Montreal Canadian Natural Railway Co. TransCanada Corporation
Enbridge Inc. Manulife Financial Corporation Suncor Energy Inc. Brookfield Asset Management Inc.
Brookfield Asset Management Inc. TransCanada Corporation TransCanada Corporation BCE Inc.
Top 10 Holdings of all four portfolios Top 10 Holdings in three of the four portfolios

There are no less than six companies that feature in each fund’s top 10 holdings as well as the TSX Composite Index. Moreover, there are an additional three companies that are top 10 holdings in three of the four portfolios.

Using AI to create a new approach to dividend investing

We use a unique approach to achieve the following objectives:
  1. 01. To produce a gross, tax-preferred dividend yield of approximately 4 - 4.5%.
  2. 02. To exhibit 20% lower volatility than the TSX Composite Index.
  3. 03. To generate higher total returns over the long-term than the (seemingly unbeatable) TSX Dividend Aristocrats Index.
Achieving these results means our portfolio differs significantly from its conventional counterparts. This has resulted in significant outperformance, both on an absolute return and on a risk-adjusted return basis. Our Atypical Portfolio Construction
  1. step 1

    Apply Preliminary Screen

    Companies Must Exhibt

    Liquidity
    150 most liquid TSX companies

    Consistency
    No dividend cuts in past 5 years
    Dividend increase in at leat 3 of past 5 years

  2. step 2

    Generate Stock Weights

    Generate Stock Weights

    Higher ratio of yield to volatility = more weight
    Lower ratio of yield to volatility = less weight

  3. step 3

    Apply Risks Constraints

    Apply Risks Constraints