Questions tagged [dividends]

This tag is to be used for any dividends related question. When appropriate it should be accompanied by country tag.

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0 votes
1 answer
94 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 ...
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1 vote
1 answer
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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 ...
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2 votes
1 answer
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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&...
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2 votes
1 answer
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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 ...
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1 answer
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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, ...
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1 vote
0 answers
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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 ...
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-3 votes
1 answer
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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 votes
1 answer
161 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 vote
1 answer
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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 vote
1 answer
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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 ...
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1 vote
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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 ...
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1 vote
2 answers
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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)...
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0 answers
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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 ...
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2 votes
2 answers
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Are dividends the same as capital gains?

Is dividends the same as capital gains? If not, what is the difference?
2 votes
0 answers
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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 ...
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1 vote
1 answer
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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 ...
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2 answers
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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 ...
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2 votes
1 answer
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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 votes
2 answers
112 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 ...
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3 answers
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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 ...
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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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3 answers
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When To Use High Dividend Funds

I recently heard that one way to retire is to accumulate enough wealth and then invest in a high dividend portfolio. That way, you can live off the dividends and not have to sell your stocks. So you ...
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0 answers
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Help on calculating national insurance obligations as a director of a UK based limited company

For the Jan 2020 to Jan 2021 I was working and being paid in the US. All tax etc. was paid in the US. I came back to the UK and started a business - a limited company where I am director and only ...
1 vote
4 answers
201 views

Does S&P 500 average 10% with or without dividends

I've heard that the S&P 500 gets an average 10% every year, not accounting for inflation. Does this number include dividends reinvested or not? If not, what is the average return without any ...
0 votes
4 answers
210 views

What is the benefit of buying a share

Absolute beginner question? Why should I buy a company's share? What am I entitled for? In a parallel universe I have managed to buy apple's 100 shares at $10 costing me 10X100 = $1000 and I came home ...
1 vote
1 answer
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Ascertaining the distribution yield of a dividend ETF

My understanding is that a stock ETF's distribution yield is not the same as its dividend yield, since the former is net taxes and fund fees and might also include "other distributions" than ...
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3 votes
1 answer
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Why is my former employer matching dividends in my 401k?

Here's a screenshot from the recent transaction history (this December) from the 401k from an employer that I haven't been employed by for many years. The index fund in question pays out a dividend ...
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2 votes
2 answers
539 views

Not going to receive any tax form from robinhood - where to report the dividends earnings

I got the following email from Robinhood: Since my dividends were less than $10 (around $5), I am wondering where exactly I should report it while filing taxes as I won't be getting 1099-DIV this ...
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15 votes
7 answers
4k views

If an investor does not need an income stream, do dividend stocks have advantages over non-dividend stocks?

My limited understanding is that a stock's share price typically goes down on its ex-dividend date by the amount of the dividend. If that's true, why are dividend equities generally considered good ...
4 votes
3 answers
608 views

Are distributing ETFs always better than accumulating ones?

I am trying to decide between investing in a distributing ETF or an accumulating ETF and to me the distributing ETF seems clearly to be the better option. Since so many people invest also in ...
0 votes
3 answers
267 views

If I owe £100k as a directors loan, do I have to pay back £100k

If I have a directors loan of £100k taken out in the UK and I am now look to pay this back. Would I be looking to pay the full £100k or is it calculated differently? I am slightly confused here, when ...
4 votes
5 answers
2k views

Is it correct to think a stock has risen 300% and it is as if it is giving out 20% dividend and never sell it?

Suppose a stock is at $10, and it is giving out $0.50 dividend, which is 5%, and you bought it. Then a couple of years later, it rose to $20, and is giving out 5% dividend, which is $1.00, but to you, ...
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1 vote
2 answers
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How Do I Reflect Dividends and Stock Profit in 2020 USA Federal Taxes

In 2020 I had stocks which gave dividends. I sold those stocks in 2020. How do I reflect this in 2020 USA Federal Taxes?
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2 votes
1 answer
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Robinhood - should I expect to receive a tax document?

I started investing last year with a small amount so my dividend earnings for 2020 is only about $5. Robinhood says that my tax document should be available on or before Feb 16. Should I expect to ...
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3 votes
1 answer
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The dividend yield of AMC is reported differently on different financial info websites. How do I know which is correct?

Google Finance says the dividend yield of AMC is 2.68%, Yahoo Finance says it's "N/A", Marketwatch says it's "0.00%", and Robinhood says it's 17.95%. I'm very surprised to see that ...
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3 votes
0 answers
67 views

Is personal allowance used up by being paid in America?

I have just started a limited company in the uk and I’ve been contracting my services since jan 1st 2021. Previously I was being paid by an American company. All tax etc. was done in America and I was ...
6 votes
4 answers
1k views

Are dividends an actual gain value?

Dividends from stock or funds are obviously considered to be an earnings benefit or a gain or a plus, but I'm wondering how that is monetarily computed? I know it is added to the gain income, but I ...
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1 vote
0 answers
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Accounting for dividends of stocks held for 3rd party

Assuming I hold a number of stocks in a brokerage account for a 3rd party which pays dividends. The broker automatically deducts taxes and debits the remaining money in the account. How do I ...
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2 votes
1 answer
189 views

Setting up a LLC in Wyoming as a non-resident to invest in stocks

I would like to open a LLC in the US in order to have access to some online brokers, like Interactive Brokers and Robinhood. I understand I will need to file an annual report with the state (Wyoming ...
1 vote
0 answers
50 views

Has Sharesight calculated my dividend's foreign source income correctly?

I recently received my first dividend from the ASX:IVV S&P 500 ETF. In the Components of Distributions announcement it says that the Foreign Sourced Income is 99.9998% of the cash distribution. I ...
11 votes
2 answers
1k views

Why don't all dividend-yielding companies offer dividend reinvestment plans (DRIPs)?

My uneducated guess is that dividend reinvestments seem to be a win-win situation between companies and shareholders. As a result, I wonder why some dividend-yielding companies do not offer dividend ...
2 votes
1 answer
106 views

Dividends and Number of shares owned

For stocks in companies that pay dividends, is this just for holding any share, or is the dividend paid per share? For example, a dividend of $10: is that $10 for holding 200 shares of stock or $10 ...
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0 votes
3 answers
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Question about this nasdaq table

I'm a complete amateur when it comes to investing but lately I have been thinking of investing my money so I did a little digging. I've found out about dividends and I want to achieve some long term ...
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1 vote
2 answers
67 views

How to calculate the value of an asset that yields royalties, given its past performance?

Let's say I have an asset that I created, such as a music copyright. Each year it yields some royalties. Maybe year 1 it's $1000, year 2, $1200, year 3, $600. If I wanted to sell it, how much ...
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0 votes
1 answer
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How can I know if a market index includes dividends yield when calculating its value? (with examples)

I'm trying to find out if some indexes are calculated including dividends (specifically, S&P 500, FTSE 100, DAX 30 and IBEX 35). I have read here that S&P 500 does include dividends. That ...
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1 vote
1 answer
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Short selling stocks, Dividends and Tax

If I short sell a stock XYZ to Buyer B and I am short the stock on the ex-dividend date, I pay the lender the dividend. The dividend tax rate is 20%. Does the lender have to pay the dividend tax on ...
2 votes
1 answer
75 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 votes
1 answer
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Cash flow and dividends

I am learning about dividends and read that the free cash flow of a company is the money it can payout to investors through dividends. Free cash flow is the cash left over after a company pays for its ...
1 vote
1 answer
101 views

Canadian tax calculation for a sample income

Is the tax calculation below for a hypothetical Canadian resident living in Ontario correct? Gross income - CAD 100K Foreign capital gains - USD 20K Dividends - USD 2K Assume 18% (CAD 18000) is ...
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1 vote
3 answers
321 views

How do shareholders benefit from stock dividends?

Dividends could be paid out to investors through cash dividends or stock dividends. In terms of the stock dividend, besides tax advantage when they don't sell out the shares compared to cash dividends,...

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