RE:RE:what to do
Incorrect, dividends are taxed the lowest, despite the dividend gross-up, and the fact that capital gains are taxed at 50%.
marginal tax rates in ontario for $50,000 of each type of income:
ordinary income - 29.65%
capital gains - 14.83%
eligible dividends - 6.39%
However, correct, the share price will drop at least as much of the dividend, once the stock hits the ex-div.
I sometimes sell stocks pre-div, if it is a stock I'm trading and not holding long-term, especially in registered accounts. If it is a stock I am holding long-term, I collect the dividend.
Don't base your strategy on the tax effects of the dividend/capital gain, but if you are going to base it on that, make sure you have the correct information as per above.
I am a CPA CGA who works in taxation so wanted to correct the inaccurate statement.
Here is just one of many links that discuss marginal tax rates:
https://www.cibc.com/content/dam/personal_banking/advice_centre/tax-savings/do-you-know-your-tax-rate-en.pdf
As for NFI, I am holding through the ex-div date, as I'm hoping for a big recovery in 2020, since I doubled my loss in NFI over the course of 2019. I think this stock is oversold, and the worst is behind them. If they start executing according to management's statements in their last conference call, I expect Q4 to have very good results.
glta