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SDS (Seductive Dividend Stocks)
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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-)? /... More
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  • 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.
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