For those doing the accelerated debt-swap: What's your simple and diversified solution for pure income?
So I'm typically a XEQT guy, I don't care much about dividends (and much less about individual stocks) and just opt for total returns. But the story changes as I'm reading about SM's accelerated debt swap strategy, namely the whole "Borrow from heloc -> Buy stocks -> receive dividends -> use them for an accelerated mortgage payment -> reborrow from heloc -> buy more stocks" that speeds up the process of paying off the non-deductible mortgage to end up with a deductible HELOC and a steady income stream.
My problem is what do you actually buy to proceed with this strategy? On paper, something like XDIV, VDY, or ZDV would fit the bill nicely with the monthly income they provide. That is, except for the part where the distributions aren't 100% dividends/income, they always contain some return of capital which makes it impractical to systematically withdraw them to use for a mortgage pre-payment.
It seems the only solution to do the debt-swap and remain 100% deductible is to build your own portfolio of individual dividend-paying stocks. Concentrating on canadian dividends already annoys me a bit (but it's a bullet I'm willing to bite), but now it seems the practical way would be to narrow it down even more to the top 15 or so dividend payers to make it more manageable.
Is there a simple and easy solution for no-fuss diversification that still distributes monthly income 100% safe to withdraw without ever any ROC?
I've read about people using VEQT and then leaving the cash distribution in the account until they know the ROC portion to specifically reinvest only the ROC and withdraw the rest, but now we're talking about a single annual accelerated mortgage payment that's like 1.3% dividend yield. Something more in the 3-4% range distributed monthly would be better for the accelerated debt-swap, no?