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Dividend Reinvestment Calculator
See how reinvesting dividends (DRIP) compounds your wealth over time.
CDZ ETF ~3–4%, ZDV ~4–5%
Results update automatically as you type.
Popular Canadian Dividend ETFs
CDZ (iShares Cdn Dividend)— Dividend Aristocrats
~3.5%ZDV (BMO Cdn Dividend)— High dividend
~4.5%VDY (Vanguard FTSE Cdn High Div)— High dividend
~4.3%XEI (iShares S&P/TSX Equity Income)— Equity income
~4.8%PDC (Invesco Canada Dividend)— Balanced dividend
~3.8%Hold dividend ETFs in your TFSA — zero tax on dividends or growth. Use code NLX83A.
Open TFSA — Get $25 Free →Where to Hold Dividend Investments
Dividend income is taxed very differently depending on which account holds the investment. The account you choose can mean the difference between paying 40%+ on dividends vs. paying zero — and it compounds dramatically over decades of reinvestment.
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TFSA — Best choice for dividendsBest
All dividends received inside a TFSA are 100% tax-free, no matter how large. Even foreign dividends grow without tax (though foreign withholding tax may apply). DRIP inside a TFSA is the most powerful combination.
RRSP — Good for US dividendsGood for US
The Canada-US tax treaty exempts US dividends from withholding tax inside an RRSP (but not a TFSA). Growth is tax-deferred, not tax-free — you pay tax on withdrawals in retirement.
Non-Registered — Tax-advantaged for Canadian dividendsCanadian div credit
Canadian eligible dividends receive a dividend tax credit, making them taxed more favourably than interest income. The gross-up and tax credit system effectively reduces your tax rate on Canadian dividends significantly.