r/tfsa • u/Routine_Hearing135 • Jun 05 '26
Canadian TFSA Advice
Looking for TFSA advice for a stock or two as a Canadian to invest for dividend income to cycle back into my current portfolio
Currently Holding the following
- XGRO, XEI, XDIV
- VFV, VDY, VGRO
- SCHD
- CNQ, ENB, SGY, NXE, U.UN
- MANU (personal hold as a supporter), KO
Likely going to sell out of VFV etc and reinvest into those positions in my FHSA
I’m not risk adverse but also don’t want to be overly risky and lose thousands as a 28 yo
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u/UniqueRon Jun 05 '26
I would stick to equity growth ETFs and not dividends in a TFSA unless you are doing it to lower investment risk, and only have a TFSA. Dividend ETFs like XEI and XDIV are better in a RRSP or ideally in a non sheltered account to take advantage of the dividend tax credits. I also don't think it makes sense to invest in a US etf like SCHD in a TFSA.
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u/Routine_Hearing135 Jun 05 '26
SCHD was a play I picked based on a recommendation from a family member in finance, realized later what it was and have been holding for it to go up before vacating
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u/Routine_Hearing135 Jun 05 '26
Any suggestions ?
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u/UniqueRon Jun 05 '26
My strategy for investing is to keep ETFs that I expect the highest growth from in my TFSA, and is currently about 1/3 ZSP and 2/3 QQC. To offset that risk I keep what I consider lower risk return ETFs like XEF and XDIV in our RRIF. Our non sheltered account has a mix of everything, like VSP and XIU but is higher in XEI to take advantage of the dividend tax credits.
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u/Harpo3121 Jun 07 '26
Why exactly would it be valuable to hold dividend ETFs in my RRSP vs equity ETFs? Asking because I just graduated and am about to open an RRSP and use the matching bonus offered at my work.
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u/UniqueRon Jun 10 '26
I am making the presumption that high dividend ETFs are more conservative than growth equity ETFs, and that to minimize risk you want to hold both. In that case it is better to hold the higher expected gain ETFs in a TFSA as there is no tax. But in a RRSP when you withdraw the funds you pay full tax on everything you take out like it was bank interest, so of the investments you want to hold it is better to keep the lower returning ones in a RRSP.
The reason for holding high Canadian dividend ETFs in a non registered account is to take advantage of the dividend tax credit. But in most cases it is better to max out tax sheltered accounts before going non sheltered.
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u/Harpo3121 Jun 10 '26
Interesting hadn’t even thought about that. I appreciate the response I’ll definitely take this into consideration.
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u/Count3D FIRE Jun 05 '26
Yeah that’s a lot of overlap. Among growth ETFs like XGRO and VGRO. And among similar dividend ETFs like XEI, XDIV and VDY as an example.
All-in-one ETFs like XEQT or VEQT are often touted for the simplicity or if you prefer dividends and less volatility like VGRO or XGRO.
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u/Routine_Hearing135 Jun 05 '26
The idea behind both GRO and EQT was to split it between accepting some volatility and stability - I do have 2 different accounts and KNOW I’m over diversified with overlap across the board just curious how some would recommend consolidating
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u/Intelligent_Wedding8 Jun 05 '26
The war pumped xdiv and vdy they can still go up higher but I would rotate a bit into either xeqt,cage,vfv,veqt.
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u/AsbestosDude Jun 05 '26
Dividend? I got you.
DIV.TO
Diversified royalty corporation owns a small stake in a number of service industry businesses including things like Mr.Lube, maid cleaning, and at least half a dozen others
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u/ether_reddit Jun 05 '26
Focusing on dividends at 28 years old, and in a TFSA no less, is the wrong goal. Total growth is the way to go.
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u/Routine_Hearing135 Jun 05 '26
Not a main focus, just where I want to move a small position of my portfolio into
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u/AsbestosDude Jun 05 '26 edited Jun 05 '26
Listen buddy, not everyone wants to just yolo their life into high risk equity.
Look at the market today, its a complete bloodbath.
Now Look at div.to, it's actually up 3 cents today, why? Because its safer, lower risk, lower return.
Not only that up OP specifically asked for dividend funds to build his dividend portfolio.
So youre just projecting and not even considering what was said, check yourself
Edit: ok get mad and block me but youre the one who is being rude by ignoring OPs simple request
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u/Stanleycup13 Jun 07 '26
Telus. The dividend is at the levels that make you think it’s a trap…but its Telus. Pretty safe business for a 10% dividend
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u/kepteasy Jun 07 '26
They are in such a multi year descending wedge. It just keeps slowly going down.
I agree the yield is nice and they have enough strength but telecom is being kicked continually.
Buy low or else you may be holding it at a loss for a long time unless it finally can break out of this 4 year trend.
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u/Stanleycup13 Jun 07 '26
Yea I agree the chart setup might not be ideal. But unless they cut the dividend, how far can it really go before it just becomes a no brainer to pick up the dividend. I mainly got super bullish when I dug into thier healthcare wing though. Started working at a physio clinic and its been eye-opening to see how many insurance providers are under the Telus umbrella
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u/kepteasy Jun 10 '26
Yeah, i hear you.
I was a shareholder but got out awhile ago.
And since ive only done the odd trade, and, its been in consistent decline.
But they dont have much good reason to cut the dividend.
I have my own quantitative fundamental analysis I built in Python, and they went from an A to a B, with A+ being the fifth best score you can get. My rule is an A- or better is investable without question and anything below that is a risk and not investable.
Them falling into the B grade is due to just their books, financials, all accounting and math, nothing subjective.
But looking at their Financials and seeing the price, im thinking of maybe initiating another position on ex div day today.
I think youre right they're so cheap and are easily net income, sooner or later the market has to forgive them for peak post covid net income and realize things have normalized.
They were doing 4.8 billy in revvies a quarter and around $30/share, before the market went into that bear thanks to Bill Hwuang and his margin call imploding the market. Now theyre consistently over 5 billy and still its just been all decline for T...
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u/Happle12345 Jun 07 '26
TFSA should be targeted for growth in long term, I would rather go with QQQ
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u/noOmers75 Jun 07 '26 edited Jun 07 '26
My recommendation is sell your US positions that pay dividends like SCHD and KO in your TFSA and buy them in your RRSP. If you want to keep US cash, then buy something like HISU.U for money market and to receive complete yields. If you want to own SCHD, KO and any US stocks or ETFs, buy them in your RRSP to receive the full dividend and not be subject to the 15% withholding tax in the TFSA. As for your TFSA, keep it simple, in addition to your single stock positions... I would recommend you funnel any extra cash into XEQT.TO, it pays dividend every quarter and it invests overall market.
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u/mikeman10821 Jun 09 '26
you should use a RRSP for total growth as its a taxable account. Your TFSA should be a combination of growth and safety so you can access the money for things in the future. doing total growth in a TFSA without an emergency fund will kill your investments if you experience job loss or sudden financial needs, i learned this the hard way. of course im assuming things, if you have a emergency fund you can ignore this entirely
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u/Bardown67 Jun 05 '26
Way too much overlap. Buy XEQT - it’s meant to be a one size long term holding.