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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: hello 5i:
I'm having a bit of trouble with the specifics of taxation on US dividends, on stocks held within a TFSA. I'll ask it in 2 parts. Perhaps the following example will put this one to bed. If we hold XYZ, a fictitious US company paying a $1 dividend (simplifying as much as possible), then a 15% witholding tax is applied. Correct so far. Now, are the remaining dividends ($0.85/share) taxed again, or are they free and clear?
Part 2: do the US dividends received from XYZ have to be declared in annual income tax reporting?
thanks for your help
Paul L
Read Answer Asked by Paul on January 06, 2017
Q: Would it be best to buy both of these stocks or you still prefer to just own CS? Do you think this sector still in play or has the money been made and better to move money in another sector? How high of a risk rating would you give these 2 stocks?
Thanks
Read Answer Asked on January 06, 2017
Q: OTC is MOST confusing:
1)Open Text Corporation (NASDAQ:OTEX) announced that its board has approved a 2-for-1 share split of the outstanding common shares of OpenText . The share split will be implemented by way of a share dividend.
PAYABLE Jan. 24; for shareholders of RECORD Jan. 9.

2) The detailed blurb then says:A due bill is an entitlement attached to listed securities undergoing a material corporation action, such as the Share Split. In this instance, anyone purchasing a Common Share during the period commencing at the opening of business two trading days prior to the Record Date (i.e., Thursday, January 5, 2017) and ending on the Payment Date (i.e., Tuesday, January 24, 2017), inclusive (the "due bill period"), will receive a payable right. Any trades that are executed during the due bill period will be flagged to ensure purchasers receive the entitlement to the additional Common Share issuable as a result of the Share Split.

Based on the above, should I buy Jan/5, 9 or 24? Does it even make any differenc?
Thanks, Austin
Read Answer Asked by Austin on January 06, 2017
Q: I have held Fiera for a number of years Could you please explain what they have done to make this a much more valuable company I read the press release but i did not really understand it

With the large share price appreciation what are the growth and profit prospects for the company

Happy New Year

Paul
Read Answer Asked by Paul on January 06, 2017
Q: You've referenced the relationship between SHOP and AMZN in recent questions, but haven't said anything specific about the relationship - could you tell me/us what the relationship is? Is there a financial relationship between the two, or does SHOP help AMZN indirectly through better inventory management of sellers?

Also, I used to own Channel Advisor (ECOM) (which I think is in a similar business as SHOP). I sold ECOM at a loss and am wondering how the two differ, and why SHOP is the better preformer, if you are aware?
Read Answer Asked by Cameron on January 06, 2017
Q: Hi 5,
If in a hypothetical situation an election were held today in the USA and a lunatic came into power, what would be your 5 top Canadian stock picks.

Thank you.
Read Answer Asked by Glenn on January 06, 2017
Q: Hello 5i,
Wishing you a very happy and prosperous 2017. And thanks very much for your advice in 2016—it helped to make that a good year for me and many others.
I need to take money out of my margin account for a purchase. I am thinking of a strategy that sounds vagely illegal but I don’t think it is I haven’t read anything about this anywhere. . I thought I would run it by you.
I have high capital gains in fairly conservative blue chip stocks, such as BNS and BCE. I have been thinking about buying a substantial amount of the same stock at todays price, thus bringing my ACB down substantially and thus reducing my capital gains. Then selling the same amount for the planned purchase. Of course at a substantially reduced capital gain.
I know that there is some risk that the stock could move in the time between the purchase and the sale, but with a stock like this probably not too much. And if it did, I could hold it for awhile. Even if dropped considerably ( probably unlikely) I could make a case for holding it.
It seems like an altogether too easy a way to reduce capital gain taxes and make some money. Am I missing something here?
thanks
Read Answer Asked by joseph on January 06, 2017
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