Sept 13th chapters, Cole’s, indigo are giving away free books at store opening, up to 10,000 books nationally. Check out their site for more details.
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Manulife has a 4.75% savings account promo. Does anyone have a referral code I can use?
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I do not, but I am intrigued - if you open an account, I may be interested in your referral code
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Does anyone here focus on eligible dividends for income? If you have thought about it can you discuss them here? The internet has a lot of opinions and I don’t know what’s what.
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2026 TFSA contribution continues to be $7000, announced today.
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The extent varies by province but eligible Canadian dividends are taxed at a low (e.g. Province of Hoth) or negative (e.g. Ontario) marginal rate for the lower tax brackets.
We’re expecting to be in those lower brackets in retirement so having some income of that type is especially attractive.
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I made a spreadsheet with every eligible dividend issuing company, with a cutoff of at least 4% dividends and no oil, gas, gold, or weapons. And no split Corps because they seem like a terrible idea. Based on the outcome of that research I put some money in PIC.A. I have a high net worth but my monthly income sucks, I’d like to have a bit more coming in.
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Ben Felix would say that selling for capital gains is a similar outcome as investing in eligible dividend stocks, and that the advantage is a mix of psychological and factor exposure to the types of companies that have dividends (ie it emphasizes more established ‘value’ stocks instead of ‘growth’ stocks like most tech who put the cash back into their companies instead of paying it back to stockholders). Which I think means 'you do you, but understand dividends aren’t a golden bullet and there are other ways to structure things depending on other considerations if you want '.
If investing for dividends I think it is important to stay diversified across types of businesses so you reduce correlation of results. Eg not all financial services or utilities or food.
(Counter example - I had a colleague at job 3 who semi fire’d by timing their investment in a couple of restaurant dividend stocks, but he was definitely an industry expert)
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I have $350 in my non-registered account, which should give me $3 a month in dividends, give or take. I’ll send money there as I can.
Selling for cap gains is definitely the better tax strategy but once a stock is sold I don’t have it any more, and I want to build an income stream that lasts for years. If I magically conjure a large sum and gradually sell it I’ll be vulnerable to market fluctuations. The benefit I see of dividends is better preservation of capital and more reliable income. Obviously not guaranteed income, but things have to be pretty bad before dividends are cut.
That’s my logic. I don’t know enough about any of this stuff to move with confidence, but I’m doing my best.
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This is a misunderstanding. All other things being equal (going back to the comment about industry etc), selling $100 in shares will be equal to getting $100 in dividends. This is the psychological thing Felix is talking about.
Because the value of the shares drop when they pay out a dividend or distribution (you can see this really clearly in cash.to). In a way it is like that old Boursin commercial, dividends are shaving off bits of value of the company in an organized way, with the plan that there is enough to grow in the meantime before the next slice is needed. But you could also sell off a bit and hope/expect the company grows in the meantime.
Eta - 3 a month from 350 investment seems too high to be sustainable. A 10% yield would have very high risk.
Eta2 - dividends were also much better options when people were paying 9.99 or more per trade
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We called these cahiers, even in English classes. I think the non immersion kids called them cahiers. What did you guys call them?
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I think if they weren’t a cahier they were workbooks
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We called them scribblers.
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These specifically we call them a « Cahier Canada »
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This is the English word I was trying to remember. Thank you!
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As francophones, unsurprisingly, we called them cahiers. What is perhaps more surprising is that index cards are “fiches” so that is the origin for index cards becoming “fish” in my world. To the point where I may have to post a picture of one and ask what they’re actually called at some point.
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Cahier, even in grade 1 - 3 when we didn’t start french till grade 4
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It’s the Canadian Financial Summit (https://canadianfinancialsummit.com/ and the content is temporarily available for free.
Through it, I’ve learned about Mixed-up Money, including a podcast with over 80 episodes in the archives (https://mixedupmoney.com/podcast#/.
It’s about the emotions/psychology of money and is aimed at women and non-binary people. I haven’t listened to any content yet, but the packaging makes me think it will really be up my alley.
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Thanks! I just added that to my playlist. It’s money feels on pocket cast
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