BMO Covered Call Canadian Banks ETF (ZWB.TO) (TSE:ZWB) Sets New 1-Year High - Still a Buy?

Key Points

• Reached a new 52-week high — shares traded as high as C$28.00 (last C$27.91) on volume of about 195,089 and were up roughly 2.1%.
• Monthly dividend with a 5.2% yield — the ETF paid C$0.12 on April 2 (ex-dividend March 30), implying an annualized yield of about 5.2%.
• Covered-call, Canadian-bank focus — the fund holds Canadian bank securities (and related ETFs) and writes covered call options to generate income and help mitigate downside while seeking long-term capital appreciation.

Shares of BMO Covered Call Canadian Banks ETF (ZWB.TO) (TSE:ZWB - ) reached a new 52-week high on Thursday . The stock traded as high as C$28.00 and last traded at C$27.91, with a volume of 195089 shares trading hands. The stock had previously closed at C$27.34.

BMO Covered Call Canadian Banks ETF (ZWB.TO) Stock Up 2.1%

The firm has a fifty day moving average of C$26.10 and a two-hundred day moving average of C$25.18.

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

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

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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