JH: The eligible dividend is the one that investors can qualify for the dividend tax credit. Ineligible dividends are coming from different stream of income from private companies. They are not available with the same significant tax advantages. Eligible dividends are dividends from traditional sources from companies we all know, the banks, the utilities, and the other ones that are quiet interesting are the dividends on preferred shares. Preferred shares are very close to corporate bonds in terms of their risk profiles and so on. So generally they are a lower risk profile, but they still have the dividend tax credit available. So they are quite attractive to income investors right now.
What Is The Difference Between Eligible And Ineligible Dividend Tax Credits?
- October 20, 2015
- 1 min Read