Anna would like to purchase $50,000 of dividend paying cormon shares in various Canadian public corporations. Anna is considering whether she should acquire the stock portfolio personally or via her RRSP, She belleves the stock portfolio will significantly appreciate in value in the near future, Anna plans to sell the stock portfolio in 5 years for reinvestment into Canadian mutual funds. What are the tax disadvantages of acquiring the shares personally, as opposed to purchasing the shares through her RRSPP Explain. Hint: first, consider personal tax implications of each investment alternative and then compare tax results (calculations are not required).

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Stock Yields

The stock yield is otherwise known as the dividend yield. The dividend yield is an annual payment of the stock dividends to the holder of a firm’s stock. The dividend yield is a financial ratio to measure the value of dividend payout every year for the relative stock price. The yield of a stock is usually shown in a percentage that discloses the expected future earnings from stock depending on the current stock price in the future. Stock yield will change depending on the market fluctuations and in accordance with the market fluctuations, the dividends will be increased or decreased by the firm.