Dividend-growth stars, Buffett-style value pick and big-name stocks dropped from TSX indexes: What you need to know in investing this week

Two legendary names of Canadian business that have seen better days – Bombardier and BlackBerry – will be removed from the blue-chip S&P/TSX 60 later this month, David Milstead writes. They will be replaced by Algonquin Power & Utilities and Canadian Apartment Properties REIT, known as CAPREIT. S&P Dow Jones Indices also removed Bombardier from the S&P/TSX Composite Index, the broadest measure of the Canadian market.

With the growth of index funds and other passive investing strategies, whether a stock is part of a major index can have a meaningful effect on share prices. Fund managers who track an index need to hold shares in the companies. Canadian stocks added to the composite, which has about 230 to 240 members can see a price bump before and even after inclusion. Similarly, companies removed from the index lose a source of demand for their shares.

If you transfer shares with unrealized losses, however, you are not permitted to use those losses for tax purposes to offset your capital gains. That’s because, when you maintain ownership of the shares, the Canada Revenue Agency considers it a “superficial loss."

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