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Stock impact report

TFSA Investors: Don't Chase Yield — Do This Instead [Globe and Mail, The (Toronto, Canada)]

MercadoLibre, Inc. (MELI) 
Last mercadolibre, inc. earnings: 2/10 04:01 pm Check Earnings Report
Whether it's a dividend from a stock or a distribution from an exchange-traded fund (ETF), the math is the same. On the ex-dividend or distribution date, the price of that stock or the net asset value of that ETF drops by the exact amount paid out, all else being equal. It doesn't matter if it recovers later in the day. It's just an accounting mechanic. That's important to understand because there's a lot of interest in using a Tax-Free Savings Account (TFSA) for passive income. And that's fine. It's certainly better than leaving cash sitting idle and losing purchasing power to inflation. But if you're still years, or even decades, away from needing that income, chasing yield may not be the best move. If you're willing to delay gratification, your TFSA can be much more powerful as a compounding machine. Loading up on double-digit yield stocks or funds often means taking on more risk or sacrificing long-term growth. Instead, the focus should be on two things: low fees and broad Show less Read more
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