The “Big Five” Canadian banks offer investment funds and include Royal Bank of Canada, Toronto Dominion Bank (TD Canada Trust), Bank of Nova Scotia, Bank of Montreal and Canadian Imperial Bank of Commerce (CIBC). Let’s explore the best place for you to invest.
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Is it time to search for bond alternatives for your balanced portfolio? Oct 18th
I was recently warned by someone in the financial sector that it’s not a great time to invest in bond ETFs. My current asset allocation is 60% equities and 40% bonds, so I’m wondering what alternatives would you suggest for that 40% portion of my balanced portfolio?
At first I considered real.... More »
Estate planning and trusts for a beneficiary with a disability Dec 28th
I am wondering who I would reach out to for estate planning advice. I have a family member on permanent disability (independent living) and wish to arrange a trust upon my death that would not interfere with his monthly support ceiling of one thousand dollars a month (the current income is approxima.... More »
Alberta and Quebec lead the country in CMHC-insured mortgage deferrals - CBC.ca + MORE May 21st
Alberta and Quebec lead the country in CMHC-insured mortgage deferrals CBC.caThe Canadian government kneecapping its own housing market is unprecedented ForexLiveReal estate resilient during COVID-19 but CMHC warns about debt’s effect Yahoo Canada FinanceCanadian R.... More »
Capital gains when selling property to family + MORE Mar 18th
Do I have to pay income tax if I inherited a property jointly with my sister and she bought me out for less than half the appraised value of the property?
—Johanna
Capital gains and transferring property between family
Asset sales between family members can be tricky to facilitate at a family leve.... More »
Compare the best GIC rates in Canada 2022 Jan 5th
How to use this tool: Simply scan the table below to view GIC interest rates offered by financial institutions across Canada. Click on one of the tabs at the top of the table to focus on your choice of non-registered, registered, TFSA-eligible or U.S. GICs.
Or, follow the prompts in the six fields a.... More »
The pros and cons of a dividend reinvestment plan
– moneysense.ca
Q. What are the pros and cons of using a DRIP in an unregistered account?
–Doug
A. Many stocks and exchange-traded funds offer a Dividend Reinvestment Plan, or DRIP, for investors. A dividend reinvestment plan does just what its name suggests: It reinvests dividends paid by a mutual fund, stock or ETF into more shares or units of that same mutual fund, stock or ETF.
If you have an investment advisor, they can determine which securities are DRIP-eligible. RBC Direct Investing provides a list of Canadian and U.S. stocks and ETFs that are DRIP-eligible, and that should apply for most do-it-yourself investors at other brokerages as well. Mutual funds generally reinvest all distributions into new units as a matter of course.
There are pros and cons to dividend reinvestment plans, Doug, as you suggest. Here are the top three reasons to DRIP and not to DRIP.
Reinvestment helps your money grow
The magic of compounding is one of the definite pros of dividend reinvestment. If you own $100 worth of a stock that grows at 4% per year and pays a 2% dividend, and you reinvest your dividends, you will have $179 after 10 years…
–Doug
A. Many stocks and exchange-traded funds offer a Dividend Reinvestment Plan, or DRIP, for investors. A dividend reinvestment plan does just what its name suggests: It reinvests dividends paid by a mutual fund, stock or ETF into more shares or units of that same mutual fund, stock or ETF.
If you have an investment advisor, they can determine which securities are DRIP-eligible. RBC Direct Investing provides a list of Canadian and U.S. stocks and ETFs that are DRIP-eligible, and that should apply for most do-it-yourself investors at other brokerages as well. Mutual funds generally reinvest all distributions into new units as a matter of course.
There are pros and cons to dividend reinvestment plans, Doug, as you suggest. Here are the top three reasons to DRIP and not to DRIP.
Reinvestment helps your money grow
The magic of compounding is one of the definite pros of dividend reinvestment. If you own $100 worth of a stock that grows at 4% per year and pays a 2% dividend, and you reinvest your dividends, you will have $179 after 10 years…
