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Originally posted by ride_spinna
i have a question for ppl that are pretty experience dealing with stocks and the market
i have some money saved up in GICs right now earning around 3% interest
i know some stocks that have dividend yields of 4% to 4.5%. If the stock is a relatively "safe" company such as a bank, wouldnt putting my GIC money into that stock earn me more interest and better yet, in the long term if the stock price goes up, i make some money from selling the stock?
i'm aware that i get taxed on the dividend payment but still, wouldnt i better off with the stock rather than GICs?
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Um, no matter what, you'd get taxed on your earnings, whether it be interest on GICs, Dividends, or Capital Gains.
Out of the three, your best option would probably be Capital Gains which is taxed at only 1/2. Dividends are grossed up by 25 or 45% with a deduction available - depending on what type of company is paying out the dividends, and Interest earned on Fixed Income Securites are taxed at 100%.
What's everybody holding right now(if u don't minnd me asking), as well as what speculations do u have on the market?