03-31-2015, 07:53 AM
If one is Canadian than than you've mentioned the main reasons for sticking with Canadian stocks:
1. US equities don't qualify for the dividend tax credit. They would be taxed at the highest rate if held in a Non-registered account.
2. There is a 15% tax on the dividends unless stocks re in Registered accounts.
But the question is can one put together a Canadian-only dividend growth portfolio and the answer is Yes! There are plenty of great Canadian dividend growth stocks and they will provide adequate diversification.
I don't feel one needs to hold stocks in all sectors, but would be better concentrating on good DG stocks which have a long history of paying and increasing their dividend.
Certainly you won't get the selection available from US stocks, but that may make your stock selection easier. When I look at some of the portfolio's they hold 30 to 50 stocks and some as many as 75. I, being a Canadian, hold 19 different stocks (with only two US) in 9 sectors (Banking, Financial, Industrial, Communications, Pipeline, Insurance, Utilities, Health and 1 REIT). I don't hold any funds or ETF's.
It may not be the best portfolio but it suits me, is easy to manage and provides a total return which meets my needs. Although I am really concerned with my dividends and the dividend growth, rather than total return.
1. US equities don't qualify for the dividend tax credit. They would be taxed at the highest rate if held in a Non-registered account.
2. There is a 15% tax on the dividends unless stocks re in Registered accounts.
But the question is can one put together a Canadian-only dividend growth portfolio and the answer is Yes! There are plenty of great Canadian dividend growth stocks and they will provide adequate diversification.
I don't feel one needs to hold stocks in all sectors, but would be better concentrating on good DG stocks which have a long history of paying and increasing their dividend.
Certainly you won't get the selection available from US stocks, but that may make your stock selection easier. When I look at some of the portfolio's they hold 30 to 50 stocks and some as many as 75. I, being a Canadian, hold 19 different stocks (with only two US) in 9 sectors (Banking, Financial, Industrial, Communications, Pipeline, Insurance, Utilities, Health and 1 REIT). I don't hold any funds or ETF's.
It may not be the best portfolio but it suits me, is easy to manage and provides a total return which meets my needs. Although I am really concerned with my dividends and the dividend growth, rather than total return.