OTCPK:ICPVF - Post by User
Comment by
SargeXon Feb 06, 2020 12:28pm
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Post# 30652555
RE:RE:RE:RE:RE:RE:THIS IS A DIVIDEND POWERHOUSE
RE:RE:RE:RE:RE:RE:THIS IS A DIVIDEND POWERHOUSE Hey mrbb
I'm not sure what you are trying to say with this but making up a hypothetical case and then arguing the results is totally meaningless. I also think you are totally wrong in predicting a dividend cut. I really believe the dividend is incredibly important to the IPL management and so they will do everything in their power to avoid a cut.
I read the Bortolotti article and it is very outdated. Coincidentally, I also use the taxtips calculator for all my tax checks (as an aside, it's terrific). I did the same $81k net income test for Ontario taxes using the 2020 tax rules and the marginal rate on divys is 8.9% and on capital gains, it's 15.7%. That's the true facts of the matter!!
mrbb wrote: No, i'm not in that tax bracket. I am saying if ipl announce dividend cut, say from 14.25 to 10 cent/month, SP will temporary go down way more than dividend loss before when hearland startup and re-statement. Let say a 2 year wait for divy re-statement back to 14.25ct/mth in Q1 2022) that is a loss of $1.02/share in divy. If the SP drop more than 1.02, you win if you able to buy ipl at > 1.02 plus discount. I'm sure ipl would announce higher dividend when heartland CF start rolling in. I would be happy to pay cap. gain tax and dividend tax when ipl i over $30/share
https://www.moneysense.ca/columns/dividends-not-as-tax-friendly-as-you-may-think/
SargeX wrote: I always find it interesting that people claim that there is less income tax on capital gains than dividend income. Not sure what tax bracket they are talking about, but if your net income is in the 2nd bracket (ie $48.5 to $97k) in Alberta, the marginal rate on Cdn eligible dividend income is 7.6% vs 15.25% on Capital gains. In Ontario, it's a little closer at 8.5% for divs and 10.2% for cpas.
I'd like to see your calculations????
mrbb wrote: i do hope so, so i can buy more at lower price, make more capital gain.
less tax on capital gain than on dividend if you don't know