Questions tagged [dividends]

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2
votes
2answers
122 views

Why [qualified] dividends are taxed differently from current income?

I am wondering what was the motivation to decouple taxation (USA) of short-term gains/income from dividends in 2003. Before 2003, dividends were mostly taxed as current income, at a significantly ...
0
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1answer
89 views

Why the tax on stocks dividends differs between the types of companies?

Why some types of companies, like a limited partnership LP deduct more percentage on the dividends (for me it was 37%) than the regular percentage (30% for inc,lmt for example)?
5
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3answers
669 views

When is it worth it to buy dividend-bearing stocks?

TLDR: Is it ever worth investing in stocks to make profit off of dividends? I did some research on dividends. It seems like it has a reputation for stable income, irrespective of the market ...
0
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1answer
105 views

Is it a negative sign for a company when it reduces its dividends, even when it is still relatively high/good dividends? [closed]

Is it a negative sign for a company when it reduces its dividends, even when it is still relatively high/good dividends compared to others?
0
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1answer
128 views

Why do companies bother paying dividends below some threshold?

There are companies out there paying dividends of fractions of a percent. Why do they bother doing that? There isn’t much an investor can do with a yield of 0.1%, even if their holdings in the company ...
0
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1answer
145 views

Calculating Dividends paid out and Div ratio from finance sheets

So I was trying to calculate the dividends a company paid out from the balance / income sheet and the retained earnings (the delta between this and last period). I thought the dividends paid could be ...
4
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1answer
234 views

What are "Tax Relief Fees" on American Depositary Receipt (ADR) dividends?

I noticed that a "Tax Relief Fee" is usually deducted from ADR dividends. Consider AXA ADR's (OTC: AXAHY) 2020 cash dividend announcement, which includes a "Tax Relief Fee" of $0....
8
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5answers
21k views

ETF S&P 500 with Reinvested Dividend [closed]

All ETFs tracking the S&P 500 Index I know (SPY, VOO, IVV) pay dividends several times per years. Is there any ETF that tracks the S&P 500 Index but instead of paying dividends they reinvest ...
0
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1answer
94 views

Finding the share price of a company couple years from now using the dividend discount model (practice)

A company is growing at a constant rate of 8%. Last week it paid a dividend of $3.00. If the required rate of return is 15%, what is the price of the share three years from now? My initial thought was ...
1
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2answers
90 views

Misnomers in comparing stock buybacks to dividends

I found this question particularly helpful:Are stock buybacks similar to dividends? Not too far off from this angle, my textbook has this as an introduction to stock buybacks: Share repurchases are ...
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2answers
2k views

If I buy a preferred stock before ex.dividend, will I get the dividends from the first time or there is more time should I hold it before getting it?

If I buy a preferred stock before ex.dividend, will I get the dividends from the first time or there is a longer period of time should I hold the preferred shares before getting its dividends?
1
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0answers
50 views

What tax do I pay when I close a limited company?

I used to be an IT contractor for many years. With recent IR35 changes, I have decided to take up a permanent/FTC job. Over the past year my contract has been under IR35, so I am paying paye tax etc. ...
0
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0answers
28 views

How much more tax will I pay on dividends for US stocks as an Irish tax resident?

I'm a Canadian citizen living in Ireland. I'm an Irish tax resident. I bought some US-based stocks on Degiro and eToro. e.g. Apple, Microsoft, Coca-cola. Ireland has a double taxation treaty with the ...
1
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1answer
47 views

High dividends implied by high depreciation allowance?

Why could a high depreciation allowance imply a payment of high dividends? For example, in a course example, it is said that: British Energy would pay dividends out of cash flows. These were expected ...
0
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1answer
114 views

Can a company announce to give dividends (quarterly) and after two quarters decides not to give dividends?

Can a company announce to give dividends quarterly and after two quarters decides to stop giving dividends? Or it is obligated to do for the remaining two quarters?
0
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1answer
147 views

Is it possible to sell a stock on the ex-div date and not receive the dividend?

A company I owned declared a dividend and on the ex-date I could see the dividend amount pending to be paid on payment date. Late in the ex-date I sold half my shares and when the payment date came, ...
10
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1answer
669 views

Does "cash in lieu of dividend" incur any tax consequences in an IRA?

My broker has a program that I can participate in which can lend out my fully-paid stocks for others to borrow (typically for shorting.) In exchange for my borrowed stock, they provide cash ...
0
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3answers
76 views

Where is the share price located once Apple releases its Form 10-K? Using for dividend yield calculation and need the price they used

I need to find dividend yield for Apple at the release of their 2020 annual report, Form 10-K. That's it. I can't find it anywhere.
0
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0answers
32 views

Will orders be adjusted on the ex-dividend date if the stock "will not be quoted ex-dividend"?

Consider a stock that will soon pay a dividend, but the dividend announcement says that the stock "will not be quoted ex". Will the prices in the order book be adjusted on the ex-dividend ...
0
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1answer
71 views

Do I need to file a tax return if my only income was from dividends and I am a foreigner?

I am not a US person for tax purposes. I do however own stocks in the US and therefore am subject to a dividend tax rate of 30% (1). If the total amount of my dividends (my total taxable income) was ...
0
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0answers
18 views

Are the Depository Trust Company (DTC) fees paid on American depositary receipts (ADR) tax-deductible?

Are the Depository Trust Company (DTC) (mirror) fees paid on an American depositary receipts (ADR) tax-deductible (mirror)? I am a US tax resident owning some ADRs (e.g., AXAHY) via a US brokerage ...
1
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1answer
149 views

What is the difference of buying Coca-Cola shares from the NYSE vs Xetra?

What is the difference of buying Coca-Cola shares from the NYSE vs Xetra? I understand that the NYSE is in USD and Xetra is in EUR but the question here is about risks, dividends, and any other ...
2
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1answer
91 views

Are taxes on dividends marginal based on tax bracket like regular income?

For income, the tax rate is marginal (or "staggered"), meaning that the actual (effective) tax rate is not the same as the tax bracket you fall into. In other words, income "fills up&...
2
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1answer
68 views

How to figure basis for XOM (ExxonMobil) shares when XON (Exxon) was bought in 1985

I bought Exxon (XON) in March of 1985, 39.6649 shares @ 49.35/share with reinvestment of dividend income. I'm attempting to determine my basis of 100 shares deposited with Fidelity in 1992. I was ...
4
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1answer
3k views

How is a dividend amount that is a fraction of a penny handled?

If I own 15 shares of a stock that makes a cash dividend payment of 0.635/share for a total dividend payment of $9.525, who determines how the half-penny is handled? I couldn't find any documentation ...
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0answers
39 views

What stops the depositary banks of American Depositary Receipts (ADR) from charging the maximum possible fees?

Depositary banks of ADRs periodically charge depositary fees (custodial fees) to the owners of the ADRs by subtracting from ADR dividends. The maximum fees that the depositary bank is allowed to ...
-3
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1answer
188 views

Theoretically, does it stifle competition to allow companies to offer shares without a dividend?

Disclaimer; I know it would never happen but I am just curious about how and why the stock market has been chosen to work the way it does - this is just hypothetical. Companies say they don't offer ...
0
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1answer
143 views

I sold off my NVDA stock on June 21(record date) in after hours trade

I sold off my NVDA stock on june 21 after hours trade. I did not get any stock as dividend yet. will I not get it ?
1
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1answer
63 views

What happens to the dividends when you enter into a securities-based line of credit or "portfolio loan"?

For this example let's say you have a stock portfolio that is paying you dividends and you take out a securities-based line of credit against the portfolio from your local bank. What happens to the ...
1
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1answer
36 views

WPK.TO dividend date

Winpak's press release notes: Winpak Ltd. (TSX: WPK) announces that at a meeting on June 23, 2021, the Company's Board of Directors declared a special one-time dividend of three dollars (Canadian ...
5
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5answers
11k views

Is it better to miss the dividend and buy the undervalued stock?

I understand that if you buy a stock on or after the ex date you wont receive the dividend. But as the stock will drop on the ex date, Is this not an excellent opportunity to buy the stock at a ...
3
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2answers
10k views

Ex-dividend date: How long do I have to hold a stock in order to get the next dividend?

I want to be a stockholder on record for a dividend. So lets assume I bought stock before the ex dividend date. Can I immediately sell the stock after the ex-dividend date to collect the dividend, or ...
50
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11answers
25k views

Why do people buy stocks that pay no dividend?

Before recently, Apple Inc. did not give dividend to shareholders. This makes me curious why people buy Apple Inc. stocks; while it might be due to the expectation of selling stocks at a higher price,...
1
vote
1answer
155 views

Why does the IRS require US taxpayers to report dividend income per country when seeking foreign tax credit?

I read in the Turbotax instructions in the section "Deductions & Credits" -> "Income From Foreign Countries" for dividend income: When you have foreign income from multiple ...
1
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0answers
34 views

US taxation of dividends for non-resident aliens: corporation vs master limited partnership

A US non-resident alien wishes to invest in a company: Brookfield Infrastructure. Two securities are available for this purpose: Brookfield Infrastructure Partners L.P. (NYSE: BIP), and Brookfield ...
4
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3answers
586 views

Are investors' preference for dividends justified?

Think about it. Before you get the dividend, you own the stock of the company. The amount to be distributed to you as dividend is in the coffers of the company. After you get the dividend, the money ...
1
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0answers
43 views

How much of a bond ETF's dividends are tax-free for US non-resident aliens?

Normally, for US non-resident aliens, the withholding tax on dividends is 30%. However, dividends that qualify as "portfolio interest" are not taxed (i.e 0% tax). When a US domiciled bond ...
4
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1answer
506 views

What happened in 1926 that made data on stock dividends reliable?

I read in Boglehead's Guide to Investing (second edition): Stock dividends can be a major source of fund returns. Since 1926, when reliable data first became available, dividends have accounted for ...
1
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1answer
158 views

Dividend tax for Non Resident Alien owning US domiciled international stocks ETF

What is the US dividend tax rate for a non-resident alien owning a US domiciled ETF holding non-US companies? Assume no tax treaty so the tax rate for the SPY ETF would be 30%. An example would be a ...
1
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2answers
75 views

Double taxation between Germany and US for dual citizen

Suppose I am a dual citizen of the US and Germany. Suppose further, that I currently live and work (employed by a german company) in Germany, and this will stay like this for the foreseeable future. A)...
2
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2answers
2k views

Are dividends the same as capital gains?

Is dividends the same as capital gains? If not, what is the difference?
0
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1answer
224 views

How can I know the exact Depository Trust Company (DTC) fees on an American Depositary Receipt (ADR) before buying the ADR?

How can I know the Depository Trust Company (DTC) (mirror) fees on an American depositary receipts (ADR) before buying the ADR? For example, let's say I want to purchase some AXAHY ADR via my ...
2
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0answers
27 views

Do non-resident aliens have to pay US taxes on dividends from ADRs?

If a US non-resident alien owns some shares of an ADR that pays dividends, does the US government collect any tax on those dividends? I understand that, for non-resident aliens, there is a 30% tax on ...
0
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2answers
99 views

What makes expensive shares worth it when the dividends are so low? [duplicate]

I'm new to the stock market and was wondering why stocks are so expensive when the dividends are so low. One share of apple costs 127 and its dividend is .22$. What exactly makes it worth so much? I ...
1
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1answer
86 views

How to calculate how much of dividends will be earned for an ETF?

Let's say that I have 100 shares of the SPYD ETF. The current Annual Dividend/Yield is $2.27/5.47%. Is that the case that after a year I'm going to get paid 100 * 2.27 = $227.00?
3
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2answers
109 views

Price on dividend reinvestment

I started doing dividend re-investment and as my spouse's brokerage account was at a different brokerage, so I noticed the different price for same ETF e.g. QQQ. One of the brokerage gave reinvestment ...
2
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1answer
74 views

Futures and dividends

Let's say I have a portfolio of futures for a long period (let's say 2000-2020). All of my underlyings are equity indices. I am always invested in the next maturity futures (thus I never wait for the ...
0
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3answers
246 views

Will a stock always correct itself on the ex-div date?

I have a position in a stock (oil company) which has already announced a ~7% dividend with the ex-div date set to 13 May and payment date to 7 June. I am looking to double my position in this stock ...
0
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0answers
92 views

Non-resident alien: Why did I pay no tax on dividend income? [duplicate]

I have a US stock brokerage account, and I am a non-resident alien. From my understanding, dividend income of non-resident aliens is taxed at a flat 30% rate (assuming no applicable tax treaties). I ...

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