Should You Compare GIC Rates with Dividend Yield? | Value Investing News

Should You Compare GIC Rates with Dividend Yield?

  • “A 2-year GIC currently yields about 2.6%.
  • But I’m not sure it’s fair to compare investing $10,000 in Microsoft (MSFT) at 1.66% vs investing in a GIC for 2 years at 2.60%.
  • In other words, they rather have a portfolio paying 6% yield and showing a total return of 7% than having a portfolio paying a 2.85% yield but showing a total return of 10%.
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