Archive of posts filed under the Canada category.

Dividend Growers Outperform Dividend Paying Stocks

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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

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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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Why Invest In Canadian Dividend Stocks

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Many Canadian companies generally tend to have higher dividend yields than their peers south of the border. For example, the dividend yield of the benchmark S&P/TSX Composite Index was 3.3% at the end of February relative to just 2.5% for the S&P 500 according to FT market data. Since Canada is mostly a natural resources-based …

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New Requirements for Canadian Tax Withholding for US Investors

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The current Canadian Withholding Tax Rate for Dividends for US-based investors is 15.0% for stocks held in taxable accounts. This is a reduced tax rate since the actual tax rate on dividends paid by Canadian corporations to non-residents is 25%. Due to a tax-treaty between the US and Canada, the reduced tax rate of 15% is applied …

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