With everything in the world going crazy affecting the stock market in a huge way, I feel that now may be a good time to talk about the dividend portfolio I’ve been building and some of the opportunities that you can still take advantage of over the next little while.
I’ve been investing now for over a year with a major focus on dividend stocks. I’m building a dividend portfolio for passive income in the future which below I will explain is also taxed extremely low compared to other income streams you’ll have. I go through the strategy I use for looking for stocks and why I prefer dividend investing and feel it’s the least stressful way to invest.
I also talk about the market opportunities we have currently with the Bitcoin halving, quantitative easing, stocks being so down, and everything else amongst the uncertainty. It seems we may feel a lot more certain going forward and already hit the bottom, though many feel it’s yet to come.
This is a great article giving you some pros and cons about dividend investing, but one thing that I wanted to make clear is why I said I only want Canadian dividends for tax purposes: https://www.theglobeandmail.com/globe-investor/investor-education/the-pros-and-cons-of-us-dividends/article24226463/. To summarize, for Canadian dividend income, I receive a dividend tax credit and given I’m making below $44,000, they’re not taxed and if I’m making say $70,000 I would only have to pay about 8.5% tax on my dividends versus 31% for income. The point here is that for the majority of ways that you will earn money in Canada with dividends, you’ll be taxed the least. More importantly, dividends from the US don’t qualify for the dividend tax credit and you’ll have to pay the full tax amount as it were regular income.
If this was something you really enjoyed, please let me know so I know to continue working on stock videos and talking about dividend investing like some of my favorite YouTubers who are also great financial minimalists like Andrei Jikh, Stephen Graham, Joseph Carlson.
Are you investing right now? What do you think of dividend portfolios versus growth investing portfolios? Do you just invest in crypto? Let me know what you think about this in the comments below and don’t forget to subscribe!