Dividends Matter

Aug 16, 2018 | Joshua Opheim


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Dividend payments can provide a steady cash flow stream that can be reinvested, reallocated or used for income.

Dividends Matter



Dividend-paying stocks outperform

Conventional thinking states that taking on higher risk is the only way to potentially achieve higher returns.  However, as these charts illustrate, companies that pay dividends have not only

Source (both charts): RBC Capital Markets Quantitative Research, data is calculated on an equal weight basis, S&P/TSX Composite Total Return Index, December 1986 – June 2015.

historically outperformed the index by a wide margin, but have done so with significantly lower volatility.

Superior tax efficiency: It’s no secret that eligible dividends are one of the lowest taxed sources of investment income in Canada. From the lowest to the highest tax bracket, eligible dividends are taxed significantly less than interest and regular income.  Contact us today to get your dividend portfolio implemented.


This commentary is based on information that is believed to be accurate at the time of writing, and is subject to change. All opinions and estimates contained in this report constitute RBC Dominion Securities Inc.'s judgment as of the date of this report, are subject to change without notice and are provided in good faith but without legal responsibility. Interest rates, market conditions and other investment factors are subject to change. Past performance may not be repeated. The information provided is intended only to illustrate certain historical returns and is not intended to reflect future values or returns.