BMO Covered Call Canadian Banks ETF (ZWB.TO) (TSE:ZWB) Hits New 52-Week High - Time to Buy?

Key Points

• New 52‑week high: BMO Covered Call Canadian Banks ETF reached C$27.55 intraday (last C$27.53) and is trading above its 50‑day (C$25.77) and 200‑day (C$24.84) moving averages.
• Attractive income: The fund paid a monthly dividend of C$0.12 on April 2 (ex‑dividend March 30), implying an approximate 5.2% annualized yield.
• Covered‑call strategy: ZWB invests in Canadian bank securities and writes covered call options to generate income while aiming to mitigate downside risk.

BMO Covered Call Canadian Banks ETF (ZWB.TO) (TSE:ZWB - ) reached a new 52-week high during mid-day trading on Monday . The company traded as high as C$27.55 and last traded at C$27.53, with a volume of 45334 shares trading hands. The stock had previously closed at C$27.43.

BMO Covered Call Canadian Banks ETF (ZWB.TO) Price Performance

The stock's 50 day simple moving average is C$25.77 and its 200-day simple moving average is C$24.84.

BMO Covered Call Canadian Banks ETF (ZWB.TO) Dividend Announcement

The company also recently disclosed a monthly dividend, which was paid on Thursday, April 2nd. Stockholders of record on Thursday, April 2nd were paid a $0.12 dividend. This represents a c) dividend on an annualized basis and a dividend yield of 5.2%. The ex-dividend date was Monday, March 30th.

BMO Covered Call Canadian Banks ETF (ZWB.TO) Company Profile

The ETF seeks to provide exposure to the performance of a portfolio of Canadian banks to generate income and to provide long-term capital appreciation while mitigating downside risk through the use of covered call options. To achieve investment objective the ETF will primarily invest in and hold the securities of Canadian banks, ETFs, or a combination of these. Depending on market volatility and other factors, the ETF will write covered call options on these securities. Under such call options, the ETF will sell to the buyer of the option, for a premium, either a right to buy the security from the ETF at an exercise price or, if the option is cash settled, the right to a payment from the ETF equal to the difference between the value of the security and the exercise price.

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