Description

The fund focuses on Canadian companies potential for dividend growth. Securities that meet their size and liquidity requirements are ranked according to market-cap and 100 highest-ranking securities are selected for further screening. With the goal of increasing coverage of firms likely to be larger players in the dividend market, the fund then combines growth (forward-looking earnings estimates) with quality factors (three-year historical averages return-on-assets and return-on-equity) in its selection process. The top 50 names based on the combined ranking of these factors are selected for inclusion. Although the fund comprises of large- and midcap securities, the resulting portfolio tends to skew toward larger firms. Stocks projected to pay more dividends are weighted more heavily, with individual security weights capped at 5%. The index is reconstituted quarterly.