Can you invest in us stocks in tfsa

I hold blue-chip stocks that pay a dividend in my TFSAs.

I have been told by a friend that I will be penalized for this. What does he mean?

Canadian dividends are taxed favourably: Holding your stocks in the TFSA also means all the capital gains will be tax-free. If your blue chip stocks are U.

However, if you hold your U. And if you hold them in a non-registered account, you can recover it by claiming the foreign tax credit on your return.

With that in mind, it might be better to hold U. But again, you need to consider the big picture.

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If your registered accounts are not maxed out, it is certainly better to hold U. Yes, you will lose the withholding tax, but the remaining dividends and all of the capital gains will be tax-free forever.

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What's the penalty for holding dividend stocks in a TFSA?

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