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Stock impact report

GIC yields eclipse Canadian bank dividends but not all income is equal: Dale Jackson [BNN Bloomberg (Canada)]

Bank Nova Scotia Halifax Pfd 3 Ordinary Shares (BNS) 
Last bank nova scotia halifax pfd 3 ordinary shares earnings: 2/25 05:30 am Check Earnings Report
Company Research Source: BNN Bloomberg
This might be one of those times, as yields on guaranteed investment certificates (GICS) surpass the dividend yields from some of the big Canadian banks that issue them. Most Canadians who invest for retirement hold big Canadian bank stocks directly, in mutual or exchange traded Canadian equity funds, or in company pension plans. Even the Canada Pension Plan (CPP) owns stock in big Canadian banks. Annual dividend yields on their common stock range from 2.8 per cent to 4.3 per cent. In comparison, one-year GICs are currently paying out between 3.8 and 4 per cent. It's important to know that GICs and bank shares are very different investment vehicles; as different as stocks and bonds. But when you're retired - or near retirement - and need a steady and reliable income stream, income is income. While individual dividend payouts might seem like a trickle, income from several income-generating investments adds up over time as it compounds. That makes both bank stocks and GICs id Show less Read more
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