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Four Reasons to Invest in TD Bank

The problem with TD bank stock is that it's a Canadian stock whose dividends to U.S. stockholders are subject to a Canadian withholding tax of 15%. Thus American stockholders see only 85% of their dividend. It is true that the U.S. allows a foreign tax credit which can alleviate that burden, but unless the annual dividend is under $600 (USD, joint return) the credit is much less than the tax and requires the completion of yet another tax form (form 1116).