RE:RE:Take profit? Or hold..I always find it interesting when people say dividend income is tax free in an RRSP. In the long haul, it is actually far from it and holding a Cdn eligible dividend in an RRSP is eventually taxed as income when it is withdraw. The marginal rate for the 2nd tax bracket for income in Alberta is 30.5%, If the dividend is in a non-reg account, then you pay as you go at marginal rate of 7.56%.
Pay me small now or bigger later.
Ciao
Sarge
fakmiz wrote: It depends where you hold the stock; in an RRSP, or TFSA. If in a straight investment account you would have to consider Capital gains tax which could be substantial.(depending on # of shares you hold). If in a RRSP or TFSA why sell as the dividend is tax free. Also are you in for the short term investment/return or long term ?In any event a 15% return on your initial investment is a good return and, currently, I know of no stock where you can get such a return today.
The decision is yours depending on your investment strategy and tax bracket!