What Is HDIV?
HDIV (Hamilton Enhanced Canadian Covered Call ETF) is a multi-sector covered-call ETF managed by Hamilton ETFs. Unlike ZWB (banks only) or ZWC (broader Canadian dividends), HDIV holds a portfolio of primarily Canadian sector ETFs — giving it exposure to financials, energy, technology, gold, utilities, and REITs — and writes covered calls on top for additional income.
What makes HDIV unique is its use of modest 25% cash leverage — borrowed from a Canadian financial institution — to enhance both its yield and growth potential. This is not derivative leverage; it is straightforward cash borrowing used to buy more of the underlying ETFs. The leverage is what pushes HDIV's yield near 10%, significantly higher than ZWB or ZWC.
HDIV trades on the TSX under the ticker HDIV.TO and was launched in July 2021.
Who Should Consider HDIV?
HDIV may suit income-focused investors who want broad Canadian market exposure, are comfortable with the risks of modest leverage, and want one of the highest monthly yields available in a Canadian covered-call ETF.
It is not suitable for investors who are uncomfortable with leverage, want pure capital preservation, or need a guaranteed income level. The combination of covered calls and leverage means distributions can vary and the unit price can be more volatile than non-leveraged alternatives.
How HDIV Generates Its High Yield
HDIV's yield comes from three sources:
- Dividends from the underlying Canadian sector ETFs it holds
- Covered call premiums collected from writing options against the portfolio
- Leverage income boost — the 25% cash borrowing lets the fund hold ~125% of its NAV in assets, amplifying income (and risk)
This combination is why HDIV can offer ~10% yield while ZWB and ZWC sit at ~6–7%. But it comes with the understanding that the leverage amplifies downside too — in a significant market decline, HDIV will fall more than a non-leveraged equivalent.
Current Yield
HDIV's forward yield is approximately 9.6–10% as of May 2026, based on trailing 12-month distributions of approximately $2.14/unit. This is one of the highest yields among widely-held Canadian covered-call ETFs.
Next Ex-Dividend Date
HDIV typically goes ex-dividend on the last trading day of each month, with payment in the first week of the following month. May 2026 ex-date not yet announced — check Hamilton ETFs' fund page for confirmation.
Dividend History (2025–2026)
| Month | Distribution/Unit | Ex-Date | Pay Date |
|---|---|---|---|
| Jan 2025 | $0.175 | 2025-01-31 | 2025-02-06 |
| Feb 2025 | $0.175 | 2025-02-28 | 2025-03-06 |
| Mar 2025 | $0.175 | 2025-03-31 | 2025-04-07 |
| Apr 2025 | $0.175 | 2025-04-30 | 2025-05-06 |
| May 2025 | $0.175 | 2025-05-30 | 2025-06-06 |
| Jun 2025 | $0.175 | 2025-06-30 | 2025-07-07 |
| Jul 2025 | $0.180 | 2025-07-31 | 2025-08-07 |
| Aug 2025 | $0.180 | 2025-08-29 | 2025-09-05 |
| Sep 2025 | $0.180 | 2025-09-30 | 2025-10-07 |
| Oct 2025 | $0.180 | 2025-10-31 | 2025-11-06 |
| Nov 2025 | $0.180 | 2025-11-28 | 2025-12-05 |
| Dec 2025 | $0.180 | 2025-12-31 | 2026-01-07 |
| Jan 2026 | $0.183 | 2026-01-31 | 2026-02-06 |
| Feb 2026 | $0.183 | 2026-02-27 | 2026-03-06 |
| Mar 2026 | $0.183 | 2026-03-31 | 2026-04-07 |
| Apr 2026 ★ | $0.185 | 2026-04-30 | 2026-05-06 |
| May 2026 | TBA | ~May 30 | ~Jun 5 |
Last updated: May 7, 2026. Trailing 12-month total (May 2025–Apr 2026): ~$2.14/unit.
HDIV Payout Calculator
Estimate monthly cash flow. Rough estimate only — not investment advice.
HDIV vs ZWB vs ZWC
| Feature | HDIV | ZWB | ZWC |
|---|---|---|---|
| Holdings | Canadian multi-sector ETFs (financials, energy, tech, gold, utilities) | Canadian big banks only | Broad Canadian high-dividend stocks |
| Covered calls? | Yes | Yes | Yes |
| Leverage? | Yes (~25% cash) | No | No |
| Distributions | Monthly | Monthly | Monthly |
| Approx. yield (2026) | ~9.6–10% | ~6.5–7% | ~5.6–5.7% |
| Diversification | High (multi-sector) | Low (banks only) | Medium (multi-sector) |
| Risk level | Higher (leveraged) | Moderate | Moderate |
Frequently Asked Questions
Is HDIV safe?
No investment is risk-free. HDIV's use of leverage means it can fall more than non-leveraged ETFs in a downturn. It is best suited for investors who understand and accept leverage risk. Not investment advice.
Why is HDIV's yield so high?
HDIV combines covered-call premiums, underlying ETF dividends, and 25% cash leverage. The leverage is the key reason HDIV's yield is significantly higher than ZWB or ZWC. Higher yield comes with higher risk.
Where can I buy HDIV?
HDIV trades on the TSX as HDIV.TO. Available at any Canadian brokerage including Questrade, TD Direct Investing, and Wealthsimple Trade.
Is HDIV good for a TFSA?
HDIV can be held in a TFSA, where distributions are tax-free. However, given the leverage and higher risk profile, consider whether it fits your overall risk tolerance before adding it to registered accounts.
Related Pages
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