Q: Hi, I try to stay away from companies that pay dividends as return of capital, mostly because of the tax issues.
Do all investors who do there own taxes keep up on the ACB, as it is sometimes only a % of the total distribution? And do they even know if their stock has a ROC?
Also I don't get it,if the company cannot afford the high dividend and relys on ROC, why are they paying it in the fist place. 3 to 5 % seems about right, anything after that is a bit of a gamble.
What am I missing, seems like a complication I can do without,especially if you have 8+ stocks
Thanks
Do all investors who do there own taxes keep up on the ACB, as it is sometimes only a % of the total distribution? And do they even know if their stock has a ROC?
Also I don't get it,if the company cannot afford the high dividend and relys on ROC, why are they paying it in the fist place. 3 to 5 % seems about right, anything after that is a bit of a gamble.
What am I missing, seems like a complication I can do without,especially if you have 8+ stocks
Thanks