Q: Posted Nov 19th the 5i Stock Screener Canadian Stocks for Tax-less Selling (2024)
screened PBH as a company that meet the required criteria to sell before the end of 2024. And then on Nov 28 based on a question from a member, PBH was a stock identified for income/ dividends names, as you prefer to stick with high-quality companies with a long-term track record of consistent growth in dividends and a strong balance sheet.
Why do you suggest to sell the stock on Nov 19 and then on Nov 28 you suggest to buy the stock? Given that own this stock, and considering to sell my position for tax loss purposes, can you please clarify your position?
Thank you.
screened PBH as a company that meet the required criteria to sell before the end of 2024. And then on Nov 28 based on a question from a member, PBH was a stock identified for income/ dividends names, as you prefer to stick with high-quality companies with a long-term track record of consistent growth in dividends and a strong balance sheet.
Why do you suggest to sell the stock on Nov 19 and then on Nov 28 you suggest to buy the stock? Given that own this stock, and considering to sell my position for tax loss purposes, can you please clarify your position?
Thank you.
5i Research Answer:
A suggested tax loss sell does not mean a 'sell' in the typical sense. In fact, a tax loss/rebuy suggestion means we like the stock, and it has potential, but just may not do much in the 30-day tax waiting period. If an investor owns PBH and can crystalize a loss, then that loss is a 'guarantee' of tax savings. It is not meant to imply it is a 'bad' company or investment. An investor who does not own it can still buy for future growth. We just mean to imply that in 30 days, the stock is not likely to rise enough to offset the tax benefits realized. New buyers, in fact, can get lower prices simply because of others selling for tax purposes.