What Is ZWC?
ZWC (BMO Canadian High Dividend Covered Call ETF) is an income-focused ETF that holds a diversified basket of Canadian high-dividend stocks across multiple sectors — including financials, energy, utilities, and telecoms — and writes covered call options on a portion of the portfolio to boost monthly distributions.
Unlike ZWB which focuses only on Canadian banks, ZWC spreads across multiple industries, offering broader sector diversification while still pursuing the same covered-call income strategy. It trades on the TSX under the ticker ZWC.TO.
ZWC is popular among income-focused Canadian investors who want monthly cash flow but prefer not to concentrate entirely in the banking sector.
Who Should Consider ZWC?
ZWC may suit investors who want regular monthly income from a diversified mix of Canadian dividend-paying companies, and who are comfortable with the trade-off that covered calls can limit upside in strong rallies.
It tends to work well for income-focused or retired investors holding in a TFSA or RRSP, where monthly distributions can be received tax-free or tax-deferred. It is less suited for growth-oriented investors with long time horizons.
How ZWC Generates Monthly Income
ZWC combines two income sources: dividends from the Canadian stocks it holds, and premiums collected from selling covered call options against those holdings. The option premiums allow ZWC to pay higher monthly distributions than a plain dividend ETF would typically offer.
The trade-off is that when markets rise strongly, covered calls can cap the fund's upside — the ETF may miss some gains above the strike price. BMO dynamically writes calls across the portfolio to balance income generation with growth participation.
Current Yield
ZWC's trailing 12-month yield is approximately 5.6–5.7% as of May 2026, based on distributions of approximately $1.23/unit over the past year. Yield moves daily with the unit price — divide last 12 months of distributions by the current unit price for your own calculation.
Next Ex-Dividend Date
ZWC typically goes ex-dividend in the final week of each month, with payment in the first week of the following month. The May 2026 ex-date has not yet been announced — check BMO's fund page or your brokerage for confirmation.
Dividend History (2025–2026)
| Month | Distribution/Unit | Ex-Date | Pay Date |
|---|---|---|---|
| Jan 2025 | $0.10 | 2025-01-30 | 2025-02-04 |
| Feb 2025 | $0.10 | 2025-02-27 | 2025-03-04 |
| Mar 2025 | $0.10 | 2025-03-28 | 2025-04-02 |
| Apr 2025 | $0.10 | 2025-04-29 | 2025-05-02 |
| May 2025 | $0.10 | 2025-05-29 | 2025-06-03 |
| Jun 2025 | $0.10 | 2025-06-27 | 2025-07-03 |
| Jul 2025 | $0.10 | 2025-07-30 | 2025-08-05 |
| Aug 2025 | $0.10 | 2025-08-28 | 2025-09-03 |
| Sep 2025 | $0.10 | 2025-09-29 | 2025-10-02 |
| Oct 2025 | $0.105 | 2025-10-30 | 2025-11-04 |
| Nov 2025 | $0.105 | 2025-11-27 | 2025-12-02 |
| Dec 2025 | $0.105 | 2025-12-30 | 2026-01-05 |
| Jan 2026 | $0.105 | 2026-01-30 | 2026-02-04 |
| Feb 2026 | $0.105 | 2026-02-26 | 2026-03-03 |
| Mar 2026 | $0.105 | 2026-03-30 | 2026-04-03 |
| Apr 2026 ★ | $0.105 | 2026-04-29 | 2026-05-04 |
| May 2026 | TBA | ~Final week May | ~First week Jun |
Last updated: May 7, 2026. Trailing 12-month total (May 2025–Apr 2026): ~$1.23/unit.
ZWC Payout Calculator
Estimate monthly cash flow. Rough estimate only — not investment advice.
ZWC vs ZWB vs ZEB
| Feature | ZWC | ZWB | ZEB |
|---|---|---|---|
| Holdings | Broad Canadian high-dividend stocks (multi-sector) | Canadian big banks only | Canadian big banks only |
| Covered calls? | Yes | Yes | No |
| Distributions | Monthly | Monthly | Monthly |
| Approx. yield (2026) | ~5.6–5.7% | ~6.5–7% | ~2.6% |
| Sector diversification | Higher (multi-sector) | Lower (banks only) | Lower (banks only) |
| Upside participation | Partially capped | Partially capped | Full |
| MER (approx.) | ~0.72% | ~0.72% | ~0.28% |
Frequently Asked Questions
How often does ZWC pay dividends?
ZWC pays monthly distributions, typically with an ex-date in the final week of the month and payment in the first week of the following month.
Is ZWC better than ZWB?
Neither is universally better. ZWC offers more sector diversification; ZWB offers higher yield and a focused bank bet. The right choice depends on your risk tolerance and income goals. Not investment advice.
Where can I buy ZWC?
ZWC trades on the TSX as ZWC.TO. Available at any Canadian brokerage including Questrade, TD Direct Investing, RBC Direct Investing, and Wealthsimple Trade.
How are ZWC distributions taxed?
Distributions may include eligible dividends, capital gains, or return of capital. Tax treatment varies by account type. In a TFSA, all distributions are tax-free. Consult a tax professional for your specific situation.
Related Pages
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