Taxes

Selecting the right investment should not be made on the basis of taxes .. but for many, you should not ignore it.  Marginal tax rates vary according to the type of investment.  And depending on your income, some marginal taxes rates are negative - yes! - you pay negative tax on earned dividends if your income is low, and if the dividends are eligible.  So holding eligible dividend paying stocks may be right for you.

Check out this link for the marginal tax rate in your province:
Marginal Tax Rates

You can see that in Ontario eligible Canadian dividends are taxed at a rate of -1.89% in 2013 if you earn less than $39,723.  So $1000 of dividends gets you get back $18.90 from the government.  Compare that to Other Income like earnings from a GIC or interest paying account - for $1000 of Other Income you pay $20.05.