That's pretty similar to my 5 pack approach. I pick the largest XIU constituents and form an equal sector weight portfolio of: financials, utilities, industrials, energy, telecom. Currently this is RY, FTS, CNR, ENB, BCE. This portfolio has 3.7% dividend yield.Avoided all cyclicals so I ended up with basicly banks, financials, utilities, pipelines and a few others, but not heavily invested in those.
I decided on this construction due to the strong total returns, but it happens to also pay out a lot in dividends. In my case I reinvest all dividends (not DRIP, but redeploy periodically) so the dividends don't mean anything special to me.