Eligible Dividends And The TFSA

Many equity investors follow a rule of purchasing common shares that pay dividends. Dividends provide investors with monthly or quarterly cash flow to help meet their income needs or to reinvest for future growth.  Eligible dividends generally have favourable tax treatment over employment or interest income; however, many individuals continue to shelter dividends from tax through a Tax Free Savings Account (TFSA).  This article explores two implications of receiving eligible...