Canada is home to many unflappable companies, thanks to a strong business environment and a conservatively run economy that avoids excessive debt. In only a handful of months over the last decade has inflation run more than 3%, and it has never topped 3.5%.

The country’s banking system is one of the soundest in the world, according to the World Economic Forum, with Canadian banks generally outperforming their American peers by wide margins, in terms of both share appreciation and bank efficiency measures. And the business culture in Canada is very pro high dividends.

A tangible expression of this culture is Dividend 15 Split Corp., which is a Canadian mutual fund that was created for the sole purpose of paying its shareholders a steady distribution (9 cents per share per month) by harnessing the dividend-paying power of Canadian companies.

It’s like an American closed-end mutual fund in that Dividend 15 mainly invests in 15 high-quality, high-yielding Canadian stocks. It then passes the dividends it receives from those stocks and any capital gains it locks in to its shareholders. It currently yields 10.2%.

Managed by Quadravest Capital Management, the fund’s holdings at any given time won’t deviate much from a fixed list of companies, though it doesn’t really disclose its investment process.

Canadian Imperial Bank of Commerce is a great example of the high quality of the fund’s holdings. The fifth-largest bank in Canada, it serves about 11 million clients around the globe. Over the past three years it has grown its revenue by an average 1.9%, while its earnings per share have grown an average of 11.9%. Though it was caught up in the global financial crisis like pretty much every other bank in the world, it never cut its dividend and has boosted it in each of the past three years.

Overall, the 15 core companies the fund holds have increased their dividends by 5.8% over the past five years.

Aside from that list of 15 companies, Quadravest can choose to invest up to 15% of the fund’s assets in other companies and, as of August 31, the fund has small stakes in AGF Management, Loblaw Companies and TMX Group.

Loblaw is Canada’s largest food retailer, TMX Group is a financial firm that is a market maker in stocks, bonds and energy markets, and AGF Management provides wealth management services. While those three companies can’t be considered quite as high-quality as the others, particularly AGF, which has struggled in an increasingly competitive market, they reflect Quadravest’s view that the Canadian economy is healthy and will continue growing.

Quadravest also boosts the fund’s income by selling what are known as covered call options on its portfolio holdings.

Here’s how this options strategy works: For example, let’s say that the managers at Quadravest like TransAlta stock and plan to hold on to their shares. They don’t believe that the price of the stock, which is currently trading at about $9.71, is going to move much over the next six months, though. They can actually create income on the stock by selling a call option on it priced at $10.59, and if, in six months’ time, the stock is still trading below $10.59, the option will expire worthless. In that case, the fund gets to keep both the stock and the $0.88 it made selling the option.

Also known as a “buy-write” strategy, it can be quite lucrative. For instance, the fund’s latest semiannual report showed that it had made about $45.1 million selling covered calls in the six months up to May 31. The money made selling those options can then be passed on to the fund’s investors as capital gains.

Of course, Quadravest doesn’t provide its services for free, collecting an annual management fee of 0.65% of assets and another administration fee of 0.1% of assets. Those fees are actually lower than most American closed-end funds, a notable feat since option investing programs can be expensive to run, and well worth the cost considering the predictable dividends the fund has maintained.

From a tax perspective, it is important to keep in mind that the fund’s distributions are subject to a 15% Canadian dividend withholding tax. However, those Canadian taxes can be recovered by filing Form 1116 with your 1040—essentially filing for a foreign tax credit.

Combining a winning strategy of investing in strong Canadian companies with an options income kicker, Dividend 15 Split is a buy up to $15.