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Recently crept into the market paying particular attention to dividend stocks and was just wondering why certain stocks are not mentioned as top performers in terms of dividends despite their high yields e.g. New Flyer Industies, Manitoba Telecom, REITs like CAR.UN & REI.UN and mutual fund companies like LFE & PDV?

One of the things that stands out is dividend seems to remain fixed compared to other top performers.

Also a question about the tfsa. If I'm holding a stock in non-registered account and decide to move it into the tfsa will capital gain/loss then be triggered based on the stocks performance? Essentially wondering if there would be an advantage to move a recent underperformer out to the tfsa instead of an overperformer.

Thanks for your help!!
 

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Many experts believe that a high yield is a often a sign of
trouble ahead, although they are often wrong. You just don't
want to be holding the stock when and if they cut the dividend :D
As to your other question, I believe that as long as you're not selling the stock it
should not trigger a gain or loss. Someone will correct me if I'm wrong on that one.
 

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transferring a security into a registered account triggers a deemed disposition of the same in the non-registered account, ie a taxable event occurs. Furthermore i believe that if the event is a capital loss, taxpayer is not allowed to claim that loss.

ouch.

so the way to go would be to sell the security as the outright owner, then transfer cash into reg account.

btw if i owned a loser yet believe that loser has merit, i'd want to keep that ownership in non-reg. I'd consider that security too risky for a reg account.

turning now to your question about dividends, here i'm noting the widespread confusion over what are true dividends and what are distributions paid out by trusts. The latter are nearly always payouts composed of interest, dividends, other income, return of capital, sometimes even foreign income. All of these individual payout streams have different taxation consequences. Only the true dividend - paid on common & most preferred shares of a canadian corporation - can generate the famous dividend tax credit that is so useful every april 30th.

it's too bad that ordinary parlance has mixed up these 2 words. In the list of securities you provide, some are companies with straight dividends, some are trusts with distributions. Speaking very generally, it's in the trusts that one finds the high payouts, and many of these could be at risk as the january 2011 date nears (reits don't have to convert.)

among quality canadian companies whose dividend is secure, the div yield is not likely to be more than 6-7% max, and even that figure is rare (bce & crescent point come to mind.) Banks, some telcos & some energy companies remain examples of companies whose divs are unlikely to be cut. I've even seen a hint of recent media babble about possible bank div increases, but bank of canada governor carney delivered a speech a couple weeks ago dousing that idea.

re manitoba telecom it's been some time since i checked out that company. As i recall there was a reason why i avoided it. So their dividend may be ok but growth may be compromised by weak no-growth wireless, for example, which could impair market price of the common share. Telus also has this problem.
 

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You should read 'the little book of big dividends', it is american but does discuss how yields can be interpreted as a warning sign.

I think he operates www.bigsafedividends.com.

It goes into a little more depth than the lazy investor, which is a canadian book that also discusses dividends.

And yes, transfer into a registered account is deemed a disposition.
 
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