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Stock impact report

TFSA Investors: Here's the Only Time Using a Taxable Account Is a Better Choice [Yahoo! Finance Canada]

SRX Health Solutions, Inc. (SRXH) 
It might seem hard to believe, but it's true. If you have a diversified portfolio consisting of dividend stocks, bonds and growth stocks, you may actually be better off putting the dividend stocks in a taxable account. Here's why. The dividend tax credit If you hold dividend stocks alongside growth stocks and bonds, the former asset type needs your TFSA room more than the latter two do. There are two reasons for this: Eligible Canadian dividend stocks get the dividend tax credit anyway, meaning there is a certain amount of tax protection built into them. Growth stocks, while enjoying some tax protection of their own, sometimes produce outsized returns in short order. In situations like this, they benefit from being tax sheltered. Bonds are taxed more than stocks, enjoying neither the dividend tax credit nor the capital gains exclusion rate. For this reason, they benefit significantly from being tax-sheltered. Basically, dividend stocks enjoy two built-in features – the Show less Read more
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