Dividends are taxed as dividends. The rate of taxation depends on your income for that year. Large amounts of dividends may turn out to be taxed at full rate.

If shares are sold at a profit they are taxed according to capital gains regulations which is at regular rate but 50% is non taxable,,,,,,,,,,,,,,,or 19% for the full amount payable at the end of the first fiscal year.

Therefore you lose 19% of the top right away. If you intend on making large purchases right away you may be better having your money non registered to take advantage of 19% tax law.

Rsp accounts work good if you wish to live off the interest since you do not pay any taxation on the balance held in the rsp account as long as you do not take it out. Many investment companies will pay out interest from rsp accounts annually or semi annually but will be taxed at full rate. Beauty of it is that you get a pay check for the rest of your life without losing any principle. There is a time line according to your age as to when you have to take the rsp out.