- Reaction score
- 27,090
- Points
- 1,090
Berkshire pays 2.97% dividend right now. Foreign income, so it doesn't get preferential income tax treatment.
Bank of Nova Scotia pays 4.35% dividend right now. Canadian, so it's eligible for the dividend tax credit.
Toss it in a registered account, make it a DRIP and while your adjusted cost base will slowly creep up, so too will your effective dividend rate, as Canadian banks are well regulated and regularly increase their dividend rates.
Note that one potential pitfall with Canadian dividends is that the gross-up of the dividend tax credit may reduce old age security through the high income claw back because of the mechanism of the gross up.
Bank of Nova Scotia pays 4.35% dividend right now. Canadian, so it's eligible for the dividend tax credit.
Toss it in a registered account, make it a DRIP and while your adjusted cost base will slowly creep up, so too will your effective dividend rate, as Canadian banks are well regulated and regularly increase their dividend rates.
Note that one potential pitfall with Canadian dividends is that the gross-up of the dividend tax credit may reduce old age security through the high income claw back because of the mechanism of the gross up.
What Is the Canadian Dividend Tax Credit?
Canadian residents who earn dividend income may be eligible to receive the Federal Dividend Tax Credit.
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