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Six Canadian Banks That Should Reward Long Term Investors

Whatever you do, remember that the Canadian government will withhold 15% of your dividend for taxes. To recoup at least a portion of it as a foreign tax credit you may have to file IRS form 1116 with your 1040 tax return, and that may complicate the preparation of your U.S. federal income tax return a little bit. People who promote foreign stocks seldom say anything about the tax consequences.

Notes from Maxim Integrated's Annual Shareholder Meeting

This is an excellent, well thought out report. I wish we had more of them.

TD Bank - Too Good to Pass Up

I hate to throw away 15% of my TD dividend as Canadian withholding tax. Moreover, when the value of Canadian currency goes down in relation to the U.S. currency, the dividend goes down. On a more personal basis, when I last went to a TD bank (Canada Trust) in Canada to exchange U.S. dollars for Canadian dollars, while on vacation last July, the bank refused to do it because I did not have an account with them. I explained I was a TD shareholder, and it make no difference. I had to change my money at the hotel.

Dividends - The Ultimate Bird in the Hand

Periodic sales of small portions of one's stock can serve just as well as dividends. The advantages include control of the timing and the amount, and also the tax treatment when capital gains are taxed at a lesser rate than dividends (which have heretofore been generally treated as ordinary income). It takes a bit more effort, and there may be a selling commission ($10 or less) to pay, but controlling one's taxes is an important advantage which most financial advisers seem to overlook.

Wal-Mart Kept Estimated $60 Million in Sales Taxes

Someone who owns WMT put options can be expected to welcome, if not generate, bad news about Wal-Mart. Retailers like Wal-Mart collect the great bulk of their sales receipts through credit and debit card transactions for which they must pay a fee to the company that provides the service. So it is reasonable that the merchant be compensated for that, because the states expect to receive a check from Wal-Mart, not a credit card charge. This article is unfair to merchants like Wal-Mart.

Buffet's Investment in Wachovia Is Unlikely

Jacobsen, have you forgotten to take your med again?

Four Reasons to Invest in TD Bank

Let me correct that! It's not the annual dividend that has to be under $600 (USD), it's the Canadian tax. Thus until the TD annual dividend reaches $4000 (USD), the investor loses 15% to the Canadians but gains it back from the IRS. I might add that TD seems to be an extremely well managed bank. One interesting aspect of this stock is that on days when all the U.S. stocks go down it will quite often go up, providing a contrarian glimmer of hope.

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).