Make sure you watch my DRIP EXPLAINED video to illustrate the true POWER of DRIPs in the long term and to see exactly how to set one up with Questrade 👇 ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-ouyXwaTOfhU.html
And to learn more how Dividends work and to see my FAVOURITE Dividend Stocks and ETFs, check out my DIVIDEND INVESTING GUIDE 📈 ru-vid.com/group/PLj8bU3AuW2qHYtTOglGG6dQWeM1avWn9m
@@shellz831 Sorry to pick on you but that's incorrect. WealthSimple does not allow DRIPs. You can setup a recurring purchase to buy a stock every week or every month but that isn't a DRIP. If it is a monthly dividend, you could probably setup a monthly purchase of a stock and hopefully the dividend will be enough to cover the cost but again, it will be totally unrelated to your dividend. It will just assume you have cash available so it's not a DRIP
@@CanadianTShirt OK,I get you. Because I use my dividend amount (which is enough to purchase 2 stocks)... I setup that amount on auto purchase of the same stocks. This is different from my larger 'dollar-cost-averaging' monthly purchases. Since, there is no commission fees, I don't mind
Maybe this is changed in the year since this video was posted but wealth simple does have the drip feature. You can turn it on under automation in your settings. It also allows for fractional shares to be purchased so you don’t need a ton of money invested in order to drip.
I love investing in stocks like this. Steady passive income, while you don't stress about the overall share price. If it goes up, great, but I almost look at it as a bonus haha
You got that right! In fact, I usually LOVE it when we see the price go down! That just means that I can buy more at a DISCOUNT, especially if I have a DRIP coming up! 😁
Great timing, I'm getting close to my TFSA contribution limit so I can't get any more DRIPs on the bigger stocks. These stocks are definitely helpful for me. Thanks!!
Absolutely! Whenever I have limited TFSA room, my priority is maintaining my existing DRIPs since I won't be able to top them up until next year once I'm maxed out. But if you have a few thousand dollars worth of room, all of these stocks are great options to get some automatic and tax-free compounding =)
Drips are cool but I’m not so busy that I can’t reinvest my dividends on my own. I only ever own around 10 stocks. That’s 40 dividends a year. I think I can find the time.
I'll look into those! Thanks for the heads up! My #1 rule with RU-vid is I ONLY talk about stocks that I personally own. Transparency is everything but I'll look into those two =)
I don't use Qtrade but thanks for the heads up. I use Questrade and I'm able to setup a DRIP with ALL of my stocks and ETFs. Check out my DRIP Explained video to see exactly how to do that with Questrade =) ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-ouyXwaTOfhU.html
Hello good sir, great video, I appreciate the content. This is the third dividend video I've watched this evening and this is by far my favorite. I will be checking for more of your videos!
I'm happy to hear that! I have a WHOLE playlist all about dividend so check out my DIVIDEND INVESTING GUIDE! =) ru-vid.com/group/PLj8bU3AuW2qHYtTOglGG6dQWeM1avWn9m
Signed up for questrade using your affiliated link. Thanks again for this video, just made me realize some stocks are even less than a burger, makes me think twice everytime I take out my card. Thank you 🙏
It took them many years but they finally implemented DRIPs! You can't customize which positions or which holdings however. With WealthSimple, you can only select all or nothing but still progress!
It depends on the size of your portfolio! If you only have a $1000 in total, then I wouldn't put 80% into any one stock. But if you already have portfolio and you're looking for something new, then sure $800 into PLZ is a good move to lock in that monthly DRIP! =)
I hear you but personally I don't want fractional shares! One, it will likely increase fees since it takes more work to support that and two, having fractional shares is a real pain...
Especially when you have to keep records on Excel and file taxes. Having 64 shares is nice and easy. Having 64.142322 shares is a nightmare. But it's a personal preference for me! =)
Not mentioned in the video but with Questrade you wont receive the DRIP discount you could with traditional banking for ex. you would lose on the 2% Telus DRIP discount
For example Enbridge and RioCan suspended their DRIP program a few years ago but with Questrade, I'm still able to DRIP them every month and every quarter =)
If you buy them directly through the company! Absolutely take advantage of those discounts! However, keep in mind that a company can always choose to suspend their DRIP program! That happened to a lot of the big dividend players in the past few years like Enbridge and RioCan. That's why I setup a DRIP with my broker so that ANY stock and ETF can be DRIP'ed, even if the company no longer offers it directly. But great point! 😁
@@CanadianTShirt I believe Enbridge is still using DRIP. I have them in a Direct Investing TFSA account and it just drips automatically at a discounted price as do all my dividend stocks. Direct Investing thru RBC must do it automatically for me. Thanks. Love your videos.
I'm a bit confused by this. My understanding is that a DRIP allows you to buy fractional shares after you have already purchased one full share in the company?
Personally, I don't want fractional shares. It makes it MUCH harder to track, record my calculations and file my tax returns. I like whole numbers but it's a personal preference =)
Questrade doesn't offer fractional shares (WealthSimple does for certain stocks but not all) Personally, I don't want fractional shares since it makes my calculations much more complex and messy if I don't have whole numbers and it will make taxes messier as well. Also, adding fractional shares would just add more work on the brokerage side and more work means more fees, so I would rather keep the fees down and stick to whole shares =)
@@CanadianTShirt I am. I'm just learning myself, but am also trying to teach my 19 year old daughter so she gets the head start that I didn't. Your videos are very helpful. I thank you again.
@@WillNeverforgetmypasswordagain I LOVE to hear that! I WISH my parents taught me these things at 19! She's going to be at such a financial head start with parents like you! =)
@@WillNeverforgetmypasswordagain I'm teaching my young adult children the same things. Unfortunately the school curriculum in Saskatchewan doesn't teach financial planning. In my opinion, it should be a core subject taught to all students.
@@SKcanuckfan It should, but it won't. The job of the school system today is to produce good little employees who will go to work and pay their taxes dutifully for 45 years.
Could someone help me. Im just getting into investments and i thought with wealthsimple you could reinvest the dividents back into the stock. Is that not the drip system
At the time of filming this video, WealthSimple did not offer DRIPs. In fact, they just recently added their new dividend reinvestment feature which is about time! I had been waiting for over 5 years haha
Keep in mind that their Dividend Reinvestment option is a little different than a DRIP with Questrade since you can't specify which stocks to activate the DRIP on. With WealthSimple, you can only select on or off for ALL of your stocks. Questrade gives you the customization
Also with WealthSimple, all your dividends will DRIP so you will be earning fractional shares. Personally, I don't like this. I want to have whole number of shares. It makes my calculations far cleaner and less messy and it makes it much easier when filing taxes so keep that in mind =)
I’ll have to check out Plaza. I have the others and use the dividends to buy stocks, almost always from businesses I am already invested in. so my TFSA is sort of one big DRIP with me deciding on the stock.
That's perfect! As long as you are reinvesting your dividends, you're tapping into that exponential growth! I just like using DRIPs to do it entirely on autopilot! =)
Yes, the DRIP will only go through if the dividend you receive is greater than or equal to the share price on that day! So if you qualify for a DRIP today but a month later, the share price jumps up, if the dividend can't cover the price of a share, then the DRIP won't go through and you'll just earn cash as usual. That's why I always suggest investing more than the minimum, to give yourself a buffer so that the DRIP goes through even if the share price grows =)
It's not something I'm into.... the management fees are crazy high, worse than some mutual funds even. And yes the massive dividend yields are tempting but you are losing any hope of capital gains and most likely you will see a LOSS in value over time... I would rather invest in quality companies that have a bright future, that way I can benefit from BOTH dividends and long term capital appreciation! 😁
Absolutely! Reinvesting dividends gives you pure exponential growth! Check out my DRIPs EXPLAINED video where I illustrate the difference with a real life example =) ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-ouyXwaTOfhU.html
I'm glad you found it helpful Shawn! I include a FREE Excel Template of my Dividend Tracker in the description box below the video! Just click the link and download the Excel file for your own use =)
If you're unclear on the columns, make sure you watch my DRIPs EXPLAINED video where I give a full walkthrough on this Excel Template =) ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-ouyXwaTOfhU.html
Sure I can definitely make a new video with updated numbers but everything still applies whether you are using Questrade or WealthSimple for your DRIPs =)
You got it! I cover my Excel template in detail in this video here, DRIPs Explained =) ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-ouyXwaTOfhU.html
hi. just starting to do investments here. and new subscriber to your channel. still confused where to put my tfsa, plan to put in couple hundrerd $ every month and hoping it will grow more compared to the banks. thanks in advance for your insights.
Welcome to my channel and thank you for joining my membership program! I recommend Questrade for your TFSA, it's my favourite broker in Canada but WealthSimple Trade is also a great option! I would suggest investing in dividend ETFs and a few well-established dividend stocks to get your feet wet with investing. Check out this video on my favourite Canadian Dividend ETFs. They would be great to help you build confidence in investing =) ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-5crp5qeQing.html
Remember investing is a LONG game! The money you invest with should be money you will not touch for years. So keep it invested and let it grow, unless of course you NEED this money now =)
Thank you for your honest advise i will keep them because for just 63$ in profit it is of no use. I plan to hold it thank you so much. Another ? please when you say a DRIP is 900$ for example PLAZA. This 900$ is it the present time for today? Does the 900$ fluctuate or instead is there a certain amount of shares that i have to buy which amounts to 900$. I just take the 900$ and divide it by the share price on that day. Is that the right way to go? thanks and i hope my Question is clear.
The DRIP required value fluctuates every single day since it depends on the share price! So the $900 value was at the time the video was released (it's still around there) Check out my DRIPs Explained video to see the calculation =) ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-ouyXwaTOfhU.html
thoughts on how Rising interest rates might effect REITS like Plaza? do they own their properties outright? any information on their current debt levels on cash on hand, maybe some data on vacancy rates compared to other similar commercial REITs, ect would like to have more information and pick a few stocks i feel confident in rather than dozens of stocks just winging it, especially heading into a recession
Most companies but especially REITs are heavily leveraged with mortgages and loans to finance new developments and redevelopments. That's why REITs are hit particularly hard when interest rates rise since their mortgage interest increases. But that's why it's important to pick REITs with quality tenants, high occupancy rates and a history of consistent and growing revenue to endure those extra costs =)
First of all, great brief Adrian. Convince me I need to DRIP based on below rationale. With the advent of fractional share purchases on Wealthsimple, there really isn't a compelling reason to use a DRIP. I simply reinvest my dividends which now allows me to incrementally benefit from a fluctuating share price. Automated fractional purchasing will likely be an upcoming option for Plus members as Wealthsimple builds out their back end. Note: most of the companies you mentioned are fractional-able on Wealthsimple (exceptions PLZ.UN, HR.UN, CRT.UN, FCR.UN, PMZ.UN, CSH.UN, ZAG, and XRE which is a wrapper for most of the aforementioned REITs). But, I can use an ETF that is fractional-able (eg. ZRE) to buy those REITs that are not fractional-abled as well as a fractional-abled ETF to buy all bond offerings. Recommended next video for you: Explain why you can fractional buy/trade some REITs versus AP.UN, SRU.UN and ZRE which you can. Benefits of $10/mth Plus Wealthsimple Account: - USD accounts; - $0 in FX fees on each US stock or ETF trade from a USD account; - Free USD deposits and withdrawals (for direct USD transfers to/from personal DIY trading accounts only); and - Instant funds deposit up to $5K CAD ($4K USD).
Nope! That's one of my favourite things about using a DRIP with Questrade! Not only is it on autopilot but whenever you buy a share through a DRIP it doesn't cost ANY commission fees! That's why I call them a free share! =)
thoughts on new investors not being able to drip their dividends? should I just suck it up and keep adding to my positions that dont drip? I wish I didnt think so much lol
For example, one of my favourite stocks of all time is PG. I will likely NEVER get a DRIP with it since it takes tens of thousands in order to lock one in. But it is still one of my BEST investments for the dividends and the long term growth!
Good question! Just because I maxed out my TFSA and I had more RRSP room available! No other reason. Normally I would hold SRU in my TFSA along with the rest of my Canadian REITs =)
There are tools and plugins you can use to extra current market data into Excel, but many of them you will have to pay for. Personally I don't do that.... I only track the Book value in Excel since that does NOT fluctuate, it only changes when I buy a stock or receive a DRIP so easy to maintain. If I want to see current, live market values, I just open Questrade. They do it for me! Check out my FREE Excel Dividend Template here if you like =) bit.ly/2O4f3sr
This is true.... you are not wrong, I just get really, really excited when I talk about finances and investing and I let my hands do half the talking for me 😅
@@CanadianTShirt I fear that you may descend to the point where Dr Strangelove was strangled by that hand---(the hand that also wants to give Nazi salutes I might add).Peter Sellers would echo my concerns
Hey Adrian, love your videos. Quick question for you If I put $40,000 in my tfsa it grows to $100,000 I pull it out. I have then $100,000 of contributing room next year. Do I have a time limit to re contribute that back?
Nope! You will never lose that contribution room! You will ALWAYS have that $100K of contribution room until you put in another $100K to use it up! Plus you will continue to gain $6.5K of new room every year! I cover this in detail in my TFSA MISTAKES video here =) ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-s4cBibLATOU.html
It's possible but be very careful when trying to time the market... I have a whole video on timing on the market vs Dollar Cost Averaging, check it out! =) ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-h9G1CV-oujI.html
Thanks for the hard work and great advice, Adrian. I opened up a Questrade account in mid-2020 using your promo code, and it's excellent. It's so handy to be able to buy even a single ETF at no charge on Questrade, so I'm able to build up savings in a certain sector and once the ETF hits several thousand dollars I'll buy one or two of the underlying stocks (e.g. swap out a banking ETF for shares in TD, RBC etc). It's a nice conservative approach to grow funds from nothing using small but frequent regular purchases of the distribution-paying ETFs to building up capital as an intermediate step before moving into stocks directly.
I'm so happy to hear that I was able to help John! And I'm so glad you started in mid-2020, that was the BEST time to start investing and take advantage of those discounts across the board! =)
And that sound like a great strategy! Regarding bank ETFs, I actually avoid those since those ETFs literally only contain 6 stocks... I prefer ETFs that have at least 30 holdings but ideally over 100. For only 6 stocks, I might as well buy those stocks directly and avoid that annual management fee. But I get in your case, you are doing that to avoid the commission fees. Just something to consider, I agree in occasionally swapping those ETFs for a direct share =)
True they do own a lot of their stores but I was speaking more of the Loblaws brand and all the other stores under their brand such as Valu-mart, Zehrs, superstore, City-Market, etc =)
Absolutely Will! I definitely recommend maximizing your tax sheltered accounts first! But yes for eligible Canadian dividends like Manulife or Telus, I also hold them in my Margin and they are much more tax efficient than regular income! I'll cover the dividend tax credit in an upcoming video =)
Absolute, since tfsa has been maxed for me and my wife, Canadian dividend payers in my non registered just makes sense. Hopefully next year, the contribution room will increase again with the inflation being what it is.
I am new to investing in Canada, so I asked for a Finacial advisor at Sunlife who helped me open and Invesit in stocks through my TFSA and RRSP accounts. and my contribution room for the year 2022 is full. Now should I open another TFSA with QuestTrade for Drips or ask my Financial Advisor for the same?
Which broker did you open your TFSA and RRSP with? If they support DRIPs, then set it up with them! But Questrade is my favourite online broker and if you'd like to transfer your stocks into a Questrade TFSA or RRSP account, check out my tutorial to see how to make that transfer =) ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-Bf1zufNlQSk.html
Remember when you have a "financial advisor" at a bank or a financial institution like Sunlife, they aren't really your advisors. They are ONLY allowed to "advise" you or sell you on their banks products, usually mutual funds which cost you a ton of fees and makes them a ton of money. "Financial Advisors" are often more like glorified salesmen. Listen to their advise and ask them questions but don't blindly do what they tell you. A real advisor who you pay upfront with a fee will give you the actual best solution since they don't have any incentive to push their bank's products onto you.
I met you at the Craft and i just love your content wishing you all the best for 2024 and good investing and thank you for all these videos which has given me the confidence to buy shares thank you so much wishing you all the best Judaline
Hello Adrien, I have a couple of questions. If investing in DRIP stocks do you have to keep a record or cost basis of the various stock price for tax purposes if in a TFSA ?? Can you suggest the most recent low threshold DRIP stocks that I should consider ?? And when is the deadline for 2023 RRSP contributions ?? Thanks very much, love your informative videos.
For a tax sheltered account like the TFSA, you don't have to track the cost basis since the capital gains are 100% tax free. You don't declare them in your tax return
If this was a non-registered account (Margin account) then yes you have to track the cost basis since that will affect the capital gains you pay when you eventually sell
Thanks a lot! I know that you have covered details in another Drip video, but do I understand correctly that those money from dividents spent on buying more stocks are not taxed?
Unfortunately no! You are STILL taxed on those dividends! It does not matter whether you receive the dividend as cash or reinvest it as a DRIP, it will STILL be taxed! However that's only for a non-registered account like a Margin account. In a tax-sheltered account like the TFSA or RRSP, the dividends are 100% tax-free and so are the DRIPs =)
Brilliant! I should have learned all this 20 years ago but better late than never. Can’t thank you enough for your educational videos. Keep doing what you’re doing as you are great explaining and your passion for investing is purely addictive.
I couldn't agree more Enid but still better late than never! I'm glad you found my channel and I'm so happy that my videos have been able to make a difference! Keep it up! =)
I am a new comer to Canada who just earned my first little chunk of money to invest. Apparently I can't buy every investment I want, what do you think is the best investment to start with? A) the safest, most defensive stock B) the one that qualify for DRIP with my small budget C) ETF for diversification (then I won't benefit from $50 commission free trades from your referral link)
I always say diversification is the name of the game, especially when you are just getting started! Even though I love a stock like TD, I never want to put all my eggs into one basket. So spread it out over different sectors and industries and ETFs are a great way to do that! =)
In your case since you are a new Questrade client, you want to take advantage of my $50 referral bonus so I would buy 10 stocks across different sectors. After that point, you might want to invest the rest in some ETFs and depending on how much money you have left, you might want to buy more stocks. With ETFs, you can buy with $20 at a time since there's no commission fees with Questrade but for stocks, I suggest buying in chunks of $500. That way the $5 commission fee is less than 1% which is fine. But for your initial $50 referral bonus, use this time to invest in different stocks to explore and avoid those commission fees. I hope that helps! =)
Hello. Your channel is great! I am not sure what your MARGIN USD and MARGIN CAD stock (AMZN, FB - SHOP, XIC, VCN, BB). I got those values from your excel template. As in the AMAZON stock price today is $92.13. But, in your excel example, you have one share, and it has a value of $3428. And both the AMZN and FB don't have CDN value equivalents. I'm sure I've just missed something in your video.
Way to go Sarah! Make sure you watch my step by step walkthrough on How to OPEN a QUESTRADE Account! ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-uoOBRUY8IXQ.html And make sure you use my referral link to get that $50 bonus! =)
Yes you absolutely can however, US dividends will face a 15% withholding tax in a TFSA! I cover this in detail in my TFSA MISTAKES video here =) ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-s4cBibLATOU.html
I'm wondering if there is any difference in tax owed in a dividend vs price appreciation scenario. Scenario 1: Buy 100 shares @ $10 each, after 1 year you have 200 shares @ $10 each due to a steady dividend drip, no price increase in the stock. Scenario 2: Buy 100 shares @ $10 each, after 1 year you have 100 shares @ $20 each due to a steady increase in the share price. You sell both of these for $2,000 is there any difference in the tax owing in these 2 scenarios?
Absolutely there is! If you're in a tax-sheltered account like the TFSA, RRSP, RESP or FHSA then there are no taxes anyway so you don't have to worry about it. But in a non-registered account (Margin) investment income will be taxed differently. I'll be making a whole video about it since it can be quite complex
Here is the short summary: capital gains will be taxed at HALF of your marginal tax rate on the profit when you sell. US and foreign dividends and taxed at your full tax rate. Canadian eligible dividends will be taxed less due to the dividend tax credit, the effective tax rate will depend on your income. I'll break this all down in an upcoming video =)
Hey Adrian, great video! I’ve just started investing using Questrade for my TFSA. I was wondering for a beginner if it is better to prioritize diversification (buying many different stocks across different industries) or buying a smaller number of different stocks and locking in a DRIP? Please let me know, thanks!!!
I always say diversification is the name of the game! It can be tempting to focus all your attention on one stock to lock in that DRIP ASAP but I think it's safer overall to spread out your investments over different stocks and sectors and work your way up to a DRIP across the board! =)
Im going to start to use Questrade this year mainly because of DRIP feature. When i was a kid, my mom used to say "You cant get anywhere when youre lazy!", well mom, i got DRIP, im rich 🤓 🤣🤣🤣
And make sure you watch my tutorial on How to Open a Questrade account and be sure to use my referral link to get that $50 signup bonus! 😎 ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-uoOBRUY8IXQ.html
Would you recommend a student invest in Plaza even if they don’t have enough money to qualify for drip? Or would it be better to wait for the share price to drop?
Absolutely! Remember a DRIP does NOT have to be locked in all at once! Most of my DRIPs took YEARS to reach! Invest what you can and slowly build up to it, brick by brick =)
All that matters to get a DRIP is to own enough shares so that your dividend you receive is larger than the share price. It doesn't matter when you buy those shares or how long it takes. Also note, I wouldn't wait for a dip, just generally when it comes to investing. I have a whole video on "Buying the Dip vs Dollar Cost Averaging" so make sure you check it out =) ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-h9G1CV-oujI.html
Can you give some suggestions to students who have low income and wants to get into investing earlier. Like monthly investing 100-200$ . Need some advice 🖤
Hi there, I’m a 28 y/o male who recently started investing in ETFs. I really like HDIV, HYLD, Canoe EIT, ZWB, ZWU, FIE. I just have a general question (as there is one looming around the corner) and that would be how do these do during bad market times? Ie: how does the dividend get paid? I am holding a certain amount of capital to DCA on these ETFs when that time comes, I just thought I’d ask if it’s something I should continue worrying about. Thank you so much for your time!
Thanks for the video. I was unaware of the commitment from Telus to increase dividend twice per year. All the more reason to buy Telus. And thanks for the Excel sheet to keep track of DRIPs. I will check it out now
I'm always happy to help! Yes with Telus, it's certainly an aggressive dividend growth campaign but they have the revenue to support it! I'm excited to see those extra DRIPs each quarter! =)
If you invest $900 into PLZ, you will own enough shares so that your dividend can buy an extra share! Now you just have to setup a DRIP with you broker! With Questrade, you just submit a DRIP Enrolment Form, it will take you 2 min. I go over exactly how to do this in my DRIPs EXPLAINED video here =) ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-ouyXwaTOfhU.html
If I'm not mistaken, Wealthsimple has zero trading fees for CDN stocks. If that's the case, despite not having DRIP system, is it not just better to manually buy stocks than to pay ~5 trading fees in Questrade (if you plan to make large and frequent purchases of CDN stocks)?
You are correct, with WealthSimple you don't pay commission fees so you can MANUALLY reinvest your dividends by buying an extra share with that cash, but it won't be done automatically and if you have many dividend stocks with DRIPs, this can be annoying to do manually. I will be making a WHOLE video comparison on WealthSimple vs Questrade. They are both great platforms and I think WealthSimple is fantastic for Canadian beginners but there are a ton of hidden fees and severe restrictions which I will cover. And most importantly, I ONLY recommend WealthSimple for purely CANADIAN stocks. Do NOT use them for US investing, it will cost you a TON of money in the long run in currency conversion fees!
For US investing, use NORBERT'S GAMBIT with Questrade to avoid paying ANY currency conversion fees! This will save you hundreds or thousands in the long run! I have a step by step tutorial on how it's done in this video =) ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-q6Q1dzK8vts.html
Thanks for the videos and all the tips you provide. Learned a lot... I am (hopefully) going to but my first share via DRIP, MFC will be the first attempt. If possible, I would like to ask you about DRIP - If my thinking is correct, at this moment, 85 shares enough for the MFC DRIP. Is that correct? or would you recommend having more margin? If yes, what would be the minimal # of MFCs you would have. Thank very much for all the videos and feedback you provide via comments. it really helps beginners like myself.
Yes your math is correct! Right now with a share price of $27 divided by the dividend per share of $0.33 we get 82 shares required for a DRIP, but it's always safe to bump this up to 85+ just to make sure the DRIP goes through as the share price grows =)
Check out my DRIP EXPLAINED video where I break down my thought process and I provide a FREE Excel DRIP Template that I personally use to manage my DRIPs. I always use an inflated share price called Max_Val in my calculations to give myself that extra buffer and I want to have a DRIP ratio not exactly at 1, I prefer to have something around 1.07 ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-ouyXwaTOfhU.html I also talk about this in detail in my Members-Only videos if you are interested =)
@@CanadianTShirt Adrian, I would like to express my gratitude for your invaluable guidance. Our first DRIP was an unqualified success, thanks in no small part to your informative videos. As a member for over a year now, I have found your insights to be both practical and insightful. I had downloaded your Excel spreadsheet some time ago and customized it to better suit my needs. However, I do have a follow-up question. Is there a specific reason why you keep ETFs separate from stocks? For visualization purposes maybe? While I understand the distinction between RRSP vs TFSA or even separate TFSA accounts, I am curious about this particular differentiation. Your expertise and input would be greatly appreciated.
I already have a whole playlist of videos on my favourite Dividend Stocks and ETFs that I hold in my TFSA and RRSP! =) ru-vid.com/group/PLj8bU3AuW2qFD4sCsCxXdaAADlyiP8bqB
Note that ANYTHING you hold in your TFSA (like the 3 stocks in this video) can also be held in your RRSP. However I do prioritize US dividends in my RRSP since that's the only play to make US dividends tax free! Since US dividends are taxed a 15% withholding tax in a TFSA =)
Nope! That's one of the beauties with a DRIP! When you use a DRIP to buy extra shares, you don't pay ANY commission fees! That's why I say those shares are free! =)
So using a DRIP with Questrade will save you $5 every time versus manually reinvesting those dividends yourself 🙂 Watch my DRIP Explained video where I show you exactly how to setup a DRIP with Questrade. It's very simple, you just have to submit a DRIP Request form and then for the rest of time (unless you change your mind) your DRIPs will go through as long as the dividend exceeds the share price =) ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-ouyXwaTOfhU.html
Basically you need to own enough shares so that the dividend you receive exceeds the share price. So # shares needed = share price / dividend per share My video goes into greater detail and I provide a free Excel sheet to help you calculate these =)
Adrian, quick question: I have a chunk amount of money now and wanted to max my TFSA. But considering the FHSA coming out later this year. Should I wait for that since if I max out TFSA now, I won't have enough for FHSA? Thanks again for a great video as always.
Ideally you want to max out both! But between the two of them, I would prioritize the FHSA! You get the SAME tax-sheltered benefit PLUS the enormous benefit of tax deductions like the RRSP! As it stands right now, the FHSA is set to launch on April 1 but it still isn't confirmed. I'll keep you guys updated! =)
You might also consider putting in some money into your RRSP! Remember if you contribute to your RRSP before March 1, you'll reduce your 2022 taxable income so you'll receive a tax refund in April when you file your taxes. Then you can use that tax refund to invest in the TFSA or the FHSA =)
Great advice. Thanks andrian. Are you replying all comments!? I've never seen people do that when they get more than 100k subscribers. You're such an exceptional RU-vidr. Keep it up Andrian!
@@toantruong2581 thank you so much for those kind words! I try really hard to reply to everyone! Obviously that becomes MUCH harder as my channel grows! 😅 But since day one, my favourite part of this whole RU-vid gig was engaging with you guys and answering your questions! That's why I still spend at least 2-3 hours every day responding to questions! I hope that never goes away! =)
Hi there, appreciate the info! I am super interested in easy drip! I looked into my VSP investment in my tfsa. Though it is supposed to have a quarterly yield of 1.3% for a total of 5.2% per year, my annual yield is only 0.8%. I am not sure where to find the share minimums you need to hold to earn the full yield potential. Would love some help :)
Hi Maria! I hate to be the bearer of bad news but VSP does not have that high of a yield... it tracks the S&P 500, the largest companies in the US most of which don't pay dividends so VSP actually has an ANNUAL dividend yield of 1.3%. In the finance world, whenever you see a percentage like dividends or interest it is always an ANNUAL amount! So the 1.3% yield is 1.3% paid out over the year, it's just divided into quarterly payments, so you can think of it as 0.325% yield every quarter. I hope that makes sense! =)
@@hermileul2297 I suggest watching my MILLENNIAL INVESTING GUIDE playlist! I go over everything you need to know about investing and how to buy stocks and ETFs from the absolute beginning! =) ru-vid.com/group/PLj8bU3AuW2qEVri8g-ErBL65ng98iAf5g
Great video! So the minimum $ invested in order to qualify for a drip must be more than the dividends they are paying you each quarter (or month)? Are there brokers in Canada that allow for ownership of partial shares through DRIP? Thanks.
The minimum amount of $ I list in this video means that if you invest that amount today, you will own enough shares so that your dividend will be enough to cover the price of an extra share =)
