M&T Bank Corp. (MTB)
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- Dividend Aristocrats Survived September [view article]
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- Finding Relative Value in Financial Services [view article]
- Bank Exposure to Freddie/Fannie Securities: Do Your Homework [view article]
- Allied Irish Banks: With 9% Dividend, This Bank Could Thrive [view article]
- Ten Banks That Will Be Hurt by the Takeover of Fannie and Freddie [view article]
- Dividend Aristocrats Handily Outperforming Main Indexes in 2008 [view article]
- Bank Executive Compensation and the Bailout [view article]
- U.S. Savings Rate To Increase, Finally [view article]
- Well-Capitalized Regional Banks: The Bottom Is In [view article]
loading ...Recent MTB Articles
- Dividend Aristocrats Survived September
- Buffett's Berkshire: 14 Stocks That Have Gone Up
- Friday Options Update: MS, XLF, GFG, MTB, XLB, BMRN, IWM
- 20 Top High-Dividend Growth Stocks
- Bank Exposure to Freddie/Fannie Securities: Do Your Homework
- Ten Banks That Will Be Hurt by the Takeover of Fannie and Freddie
- Allied Irish Banks: With 9% Dividend, This Bank Could Thrive
- Dividend Aristocrats Handily Outperforming Main Indexes in 2008
- Finding Relative Value in Financial Services
- U.S. Savings Rate To Increase, Finally
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Allied Irish Banks: With 9% Dividend, This Bank Could Thrive [view article]
The question raised by Mr. Johnson (i.e. "User 190898") is a fair one which I perhaps should have addressed inside the article.Ireland does withhold 20% as per the EU norm, UK excepted, I believe. Canada does the same. However, it is very easily reclaimed on your tax filing irrespective of your tax bracket or filing status. That is to say, you still get 100% of the dividend, you just get some of it as a credit on your taxes. It takes the form of an entry in box 6 of form 1099-DIV from the brokerage firm indicating the foreign tax paid. This full amount is then entered for a credit on the second side of the standard 1040. On the 2007 verion of the 1040, it was line 51, titled, "Foreign Tax Credit." It is terribly easy to accomplish and, when dealing with publicly traded stocks, as opposed to control stakes in a private, foreign-domiciled businesses, there are no extra supplemental forms.
While easily done, I fully concede that a more rigorous analysis of AIB's pluses and minuses would entail a time value of money calculation taking into account some months of lost interest on that withheld 20%.
The Irish government's tax policy, a matter of remarkable clarity, is outlined in the link below.
Cordially,
DD
www.idaireland.com/upl...
Reply
Allied Irish Banks: With 9% Dividend, This Bank Could Thrive [view article]
The question raised by Mr. Johnson (i.e. "User 190898") is a fair one which I perhaps should have addressed inside the article.Ireland does withhold 20% as per the EU norm, UK excepted, I believe. Canada does the same. However, it is very easily reclaimed on your tax filing irrespective of your tax bracket or filing status. That is to say, you still get 100% of the dividend, you just get some of it as a credit on your taxes. It takes the form of an entry in box 6 of form 1099-DIV from the brokerage firm indicating the foreign tax paid. This full amount is then entered for a credit on the second side of the standard 1040. On the 2007 verion of the 1040, it was line 51, titled, "Foreign Tax Credit." It is terribly easy to accomplish and, when dealing with publicly traded stocks, as opposed to control stakes in a private, foreign-domiciled businesses, there are no extra supplemental forms.
While easily done, I fully concede that a more rigorous analysis of AIB's pluses and minuses would entail a time value of money calculation taking into account some months of lost interest on that withheld 20%.
The Irish government's tax policy, a matter of remarkable clarity, is outlined in the link below.
Cordially,
DD
www.idaireland.com/upl...
Reply
Allied Irish Banks: With 9% Dividend, This Bank Could Thrive [view article]
Does the Irish government levy a withholding tax of 20% on dividends paid by Irish companies, as do most European countries?Incidentally, the tax as levied by European companies is levied on U.S. qualified plans as opposed to U.S. tax policy in the U.S.
In my experience, the 20% withholding tax on dividends is a dead loss to my clients.
Burton A. Johnson, MD, JD
President
Burton A. Johnson Portfolio Management, Inc.
Sandy Spring, MD USA Reply
Allied Irish Banks: With 9% Dividend, This Bank Could Thrive [view article]
Many thanks to the article's author for the clear explanation of AIB's dividend structure. Now I understand why the dividend amount listed on financial web sites for this stock does not match AIB's announcements--the discrepancies are not just a matter of varying currency conversion rates. (And you can't find the same yield for AIB listed on any two financial sites!) AIB is my only long-term investment because the numbers tell me that the share price will eventually rise and because, as the author demonstrates, the generous dividends are safe for the foreseeable future. I too like AIB management's candor about current problems and conservative outlook for the rest of the year. The only troubling comment in the article, and it's right I think, is that much of AIB revenues come from construction loans, and construction is plummeting in Ireland right now. So I'll watch the stock while I continue to add to the position. Great article! I wish that info with this depth and clarity were available on my other positions! ReplyGrowth
Investor
Dividend Aristocrats Handily Outperforming Main Indexes in 2008 [view article]
Great resource David!It's great to see that dividends are cushioning the losses for investors this year. To everyone else who believes that this is a short term phenomenon, please check this link out:
dividendgrowth.blogspo... Reply
Allied Irish Banks: With 9% Dividend, This Bank Could Thrive [view article]
The thing that bothers me is that there does not seem to be much a relationship between incomes and home prices in Ireland, especially in the greater Dublin area. In my view, such a relationship will ultimately return. The problem is:- for that to happen, house prices will have to fall a very long way or incomes will have to rise by many multiples. Since the latter would end all economic progress in Ireland, I assume the former must happen. If that happens there's going to be a very serious home loan default situation and that's going to hit AIB as hard as anyone. ReplyAllied Irish Banks: With 9% Dividend, This Bank Could Thrive [view article]
DOWN THE PIKE WHEN THE BANKS HAVE RID THEMSELVES OF THEIR PROBLEMS AIB SHOULD BE ONE OF THE BEST PERFORMING IN THE GROUP. THE FUNDAMENTALS ARE IN PLACE AND THE IRISH ECONOMY HAS YET TO SEE ITS HIGH.J M PETERS Reply
Allied Irish Banks: With 9% Dividend, This Bank Could Thrive [view article]
You have to ask at this point, what would the ideal bank investment look like? Probably a lot like AIB.But if your answer is "not like a bank, given this volatile financial environment," then the question changes to: what does buying near the bottom look like?
Sometimes, when a stock becomes too unpredictable for the short term traders to make their 1 month investments with any confidence, that lowers the price enough for us long term investors to swoop in. Here we are, in such a scenario. Reply
Allied Irish Banks: With 9% Dividend, This Bank Could Thrive [view article]
Mr. Daly ... Well done and thoughtful analysis covering all bases. The local knowledge information was very interesting. I have been adding to my position in AIB for many of the reasons stated. No one knows how hard the Irish economy will be hit in the end, but AIB seems to be a good haven to deploy some capital at depressed values and collect a generous dividend while waiting the recovery out.I do not believe it is fair to compare WB with AIB in any fashion. The two banks have completely different structures and non comparable situations to this point. WB paid a hefty premium for both Golden West (a sub-prime originator) and A. G. Edwards. Neither of these 100% stakes can be sold or spun off for anywhere near what they are into them for. WB needs some great effort to repair their balance sheet. AIB does not need to do this, thus far, and, are well positioned to do, so if needed.
Mr. McCulley
Reply
Dividend Aristocrats Handily Outperforming Main Indexes in 2008 [view article]
I always get a kick in the pants from people who say that index XYZ performed BETTER than the market, when in reality, they just lost LESS! ReplyAllied Irish Banks: With 9% Dividend, This Bank Could Thrive [view article]
thanks for an interesting & well written article! ReplyAllied Irish Banks: With 9% Dividend, This Bank Could Thrive [view article]
The recent 10th anniversary of the Omagh bombing disaster was greeted with a surge in Irish nationalism. Paraphrasing, the “Real” IRA broke out and used their grenade launchers targeting law enforcement.Locals take an occupying “army” e.g., the Brits as a personal insult and since time immemorial resist with vigor! When the occupiers depart, the all clear signal will sound loud and clear. Until such time??????
Reply
Dividend Aristocrats Handily Outperforming Main Indexes in 2008 [view article]
A non-starter. Replynies.com
Allied Irish Banks: With 9% Dividend, This Bank Could Thrive [view article]
Very good analysis! We entirely concur with the strong outlook for AIB and have actually been recommending the stock since May 2008. Despite an uncooperative market full of uneasy sentiment for the industry and region, Allied Irish Banks is a long-term winner caught in an unfair valuation. You can see our full recommendation here: investingpennies.com/i... ReplyDividend Aristocrats Handily Outperforming Main Indexes in 2008 [view article]
Cherry picked. Reply