Given there's a 30% dividend withholding tax, could it still make sense to buy US stocks for the dividend?
Given US dividend-paying companies usually have a longer track record of dividend payments and dividend growth, as well as stock price appreciation, some with high enough yields may still seem attractive for their dividends despite the 30% cut for uncle sam. For example, just looking at dividends and ignoring for now all other financials:
MO
- Current yield: 7.5%
- Effective yield (-30%): 5.25%
- Consecutive years of dividend growth: 52
- Consecutive years of dividend payments: 52
- Dividend growth rate for the past 5 years: 8.42%
ABBV
- Current yield: 4.17%
- Effective yield (-30%): 2.92%
- Consecutive years of dividend growth: 8
- Consecutive years of dividend payments: 8
- Dividend growth rate for the past 5 years: 17.93%
3M
- Current yield: 3.33%
- Effective yield (-30%): 2.33%
- Consecutive years of dividend growth: 63
- Consecutive years of dividend payments: 63
- Dividend growth rate for the past 5 years: 5.92%
GIS
- Current yield: 3.03%
- Effective yield (-30%): 2.12%
- Consecutive years of dividend growth: 2
- Consecutive years of dividend payments: 32
- Dividend growth rate for the past 5 years: 1.86%
MCD
- Current yield: 2.06%
- Effective yield (-30%): 1.44%
- Consecutive years of dividend growth: 45
- Consecutive years of dividend payments: 45
- Dividend growth rate for the past 5 years: 7.78%
Am I crazy for considering a 30% cut to be acceptable? Or should I focus more on finding dividend stocks that yield more than 2.5% in other countries, even if they don't have such a strong track record? Any other non-US dividend investors picking US stocks?