A Review of Canada’s S&P/TSX Composite

Canada is the world’s second largest country in terms of land area. Unlike Russia which borders multiple countries, Canada is the only country in the world’s largest country that borders only one country according to CIA’s The World Factbook. The population of Canada is just 34.8 million making it the 38th in the world. Canada …

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Canadian Non-Resident Withholding Tax Rates For Treaty Countries

The withholding tax rates for interest, dividends, royalties and pensions/annuities earned held by foreigners from Canadian companies are listed in the attached document below. These applicable amounts based on the tax rates are withheld by the Canadian government. These rates are defined in the tax treaties in effect between Canada and the specific country. So …

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Dividend Growers Outperform Dividend Paying Stocks

Dividend-paying stocks generally beat non-dividend paying stocks in the long run. However stocks that grow their dividends outperform dividend-payers in the long-term due to the effect of compounding and rising dividends. The graph below shows that dividend growers outperform dividend payers in terms of total returns over the long run: Click to enlarge Source: Earning dividend …

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A Review of TSX Composite vs. S&P 500 Returns

The composition of U.S. and Canadian equity markets vary widely. As a natural resources-based economy the Canadian market is concentrated by energy, mining and financial companies. The U.S. on the other hand has a very diversified economy with companies operating in pretty much every sector from manufacturing to defense technology. Hence the U.S. equity market …

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