ENY, which has a trailing 12-month dividend yield of 3.67%, has an almost 3.7% weight to Canadian Oil Sands. “Canadian producers in the Standard & Poor’s/TSX energy index have a dividend yield of 3.59 percent, 35 percent more than the average of the U.S. companies in the S&P 500 Energy Index,” according to Bloomberg.
Just as there are concerns that some smaller U.S. exploration and production firms are not generating enough cash flow to meet outstanding high-yield debt obligations, there are concerns that comparable Canadian firms are among the most vulnerable to negative dividend action.
Crescent Point and Penn West officials told Bloomberg they will be able to maintain their dividends next year. Those stocks combine for just under 1% of EWC’s weight and 5.7% of ENY’s weight.
iShares MSCI Canada ETF
ETF Trends editorial team contributed to this post.