Are dividends tax efficient? Dividends can be extremely tax efficient because of something called the Canadian Dividend Tax Credit. For someone in the highest tax bracket, $1000 of regular income would be taxed at 50%. Interest (bonds, GICs) is also […]
Important details
So, I should buy companies with the highest dividends, right? Not so fast. There is something called the “dividend trap” which refers to the act of buying a stock for the high dividend then getting caught when the dividend is […]
What are dividends?
Some companies, often large profitable ones in established industries, pay out a portion of their profits to the owners (shareholders). These are dividends. Dividends are real cash payouts that arrive in the investment account of the shareholders on a (hopefully) […]
What are stocks?
Stocks are shares of a company. Owning a stock (or share) means you own part of that company. Being part owner of a company entitles you to a share of the future earnings of that company. How are stocks […]
The Basics
Understanding the essentials of dividend investing What are dividends? What are stocks? Dividends and taxes Essential knowledge