SDS (Seductive ...'s  Instablog

SDS (Seductive Dividend Stocks)
Send Message
Sorry I hide my true identity but I'm a physicist/engineer, native contrarian and idea generator. I am an eclectic dividend investor with motto "In God We Trust, All Others Pay Cash" applied to companies I invest in. I like to read /and read a lot - did you look on my SA photo 8-)? / including... More
My blog:
SDS blog in Seeking Alpha
  • A note on foreign taxes on dividends (Dec 16, 2011) 0 comments
    Dec 17, 2011 11:28 AM

    Some investors dislike foreign stocks (ADR) because foreign taxes widthdrow. I think that for well diversified dividend investor this concern is not rellevant for taxable (non-IRA) account.

    US qualified tax rate now (I wish in future) is 15% for most folks with regular (non-IRA) accounts. Any smart investor must diversify. Let say 1st investor holds 4 US companies and 1 foreign with "terrible" 31% tax and each pays 100$ dividends. Let's say 2nd investor holds 5 USA companies each pays 100$ dividends. Both investors suppose to pay 75$ taxes. The 2nd investor takes 15$ from each company dividends and 1st investor takes 31$ from non-US company dividends and 11$ from each US company dividends. SO FOREIGN TAXES ARE IRRELEVANT IF STOCKS ARE IN TAXABLE ACCOUNT.

Back To SDS (Seductive Dividend Stocks)'s Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers


More »

Latest Comments

Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.