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Tax efficient income

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