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  • If I Were Starting All Over Again [View article]
    Dividend Mantra - A great discussion. But half a cake. I would also focus on salary income. Not just yours, but your potential spouse's and the boy's future. Living in a state where they tax everything else to make up for the lack of state tax (especially if your salary is low) may not be a net savings. What kind of school district do you live in for the kids upcoming school? Education=income (in general) so that's a consideration. It would be best to live in a place where job and educational opportunities are good, get a good job (one that you enjoy) and max out you enjoyment of life. Its better to look at the whole picture rather than sqeezing on the balloon.

    May 22, 2014. 05:12 AM | Likes Like |Link to Comment
  • Best S&P 500 Dividend Stocks According To Piotroski Principles [View article]
    For US taxpayers, Switzerland is a tax treaty state. So its 15%. Unless you get a lot of foreign dividends, its just one line on the 1040. Not a big deal.
    May 6, 2014. 04:48 AM | Likes Like |Link to Comment
  • Portfolio Management For Retirees: Frothy Market [View article]
    You may want to hold foreign stocks in a taxable account rather than a 401K or other retirement account because of the foreign tax withholding. The Swiss withhold 15% for US taxpayers (a tax treaty country). You get it credited back against Federal taxes. But I would guess in a 401K its not recoverable.
    Feb 19, 2014. 06:19 AM | 1 Like Like |Link to Comment
  • Washington REIT: Putting Your Eggs In One Basket (Unless It's The Goose That Lays The Golden Egg) [View article]
    More on the height restrictions - article in today's Washington Post

    I do not see them raising the height limit. Washington area will remain an employment magnet - especially compared to surrounding cities such as Baltimore/Richmond/Phil (I call them 3 "R" cities). Good schools, no jobs - so all the schools there can teach you are the 3 R's - reading, writing and the road to Washington. So the city will continue to grow.
    Jul 20, 2012. 05:14 AM | Likes Like |Link to Comment
  • Washington REIT: Putting Your Eggs In One Basket (Unless It's The Goose That Lays The Golden Egg) [View article]
    The height restriction in DC itself has nothing to do with any monuments, original plan, etc. It was solely a response back around 1900 to the building of what was considered an overly tall apartment building. As a practical matter, the height of office buildings is restricted to about 12 stories and apartments about 14 stories. Thats the max - of course in much of the city the zoning is for smaller buildings. Because much of the city is either federally owned, parks, residential, or land owned by churches and universities, there is not a lot of room for new office buildings. The new construction around NOMA and the Nats stadium is focused on residential. Part of the reason for this is an effort to increase the DC population to get voting representation in Congress. So I would think that DC office space may tend to be a good long hold for WRE. That being said, I don't think they have much in DC itself, focusing on areas around DC - where a lot of agencies and their supporting contractors are located.

    Why do I like WRE?

    One of my favorite DC stories is about the Landsburg family who immigrated from Germany in the mid 1800s and later started a local chain of Department stores. When they arrived in America, the Landsburgs were asked by the the immigration officer where they intended to settle. They asked him "Where does the king live?" The immigration officer told them that, in America, we have a president who is elected by the people. "Then where does he live?" they asked. "In Washington" they were told. "Then that were we will live" was the Landsburg's said. "Why?" the immigration officer asked. They responded "Because where the KING lives, that's where the MONEY is."

    About 175 years later their words still ring true.
    If its good enough for the Landsburg family its good enough for me.

    Jul 14, 2012. 06:47 AM | 5 Likes Like |Link to Comment
  • Novartis: The Market Is Wrong About This Pharma Stock [View article]

    When you get your brokers statement you will see they deducted 15% from your dividend proceeds for the Swiss tax. (US has a tax treaty with the Swiss and are not subject to the normal 35% Swiss tax). The dividend is paid once a year and not quarterly.

    At tax time, when you fill out your 1040, line 47 (on the 2011 form) deals with the foreign tax credit. In general, you would get the full amount of Swiss 15% tax you paid as a credit against your US taxes. I would take a few minutes to look at the rules and reporting requirements to see how it fits your particular situation. But the bottom line for many is that its a wash for NVS held in a taxable account.
    May 26, 2012. 07:57 AM | Likes Like |Link to Comment
  • Dividend Focus: Novartis [View article]
    So why wouldn't you want to hold NVS less than 2 more months to get the additional 4.5%?

    NVS is certainly no short term growth stock. I also like MRK and PFE and intend to pick up some of one or the other later this year when I am hoping the prices come down some. Holding NVS long term because its a highly profitable, solid, plain old, boring, low key, Swiss company, pays in Swiss currency and should be around in some form or other for many years - a cash machine but not spectacular. They are well positioned to play on the developed countries' demographics as well as the emerging world's increasing demand for high quality drugs. Here we have the second largest pharma in the world and hardly anyone in the US even knows they exist - the Swiss at their best - God bless them!
    Apr 14, 2012. 07:59 AM | 1 Like Like |Link to Comment
  • Dividend Focus: Novartis [View article]
    I don't know why they would not do this for Switzerland - this is not some third world country. My brokerage was Schwab and they only subtracted the 15% plus a small ADR management fee.
    Apr 12, 2012. 12:34 PM | Likes Like |Link to Comment
  • Dividend Focus: Novartis [View article]
    But not for US taxpayers. For US taxpayers the rate is 15% per tax treaty between the United States of America and the Swiss Confederation. See the IRS web pages for details.

    I received the NVS dividend into my account on April 5 and there were 3 related transactions - the full dividend, a subtraction of 15% of the full dividend for the Swiss tax and a small fee (under $10) for ADR management.
    Apr 11, 2012. 04:58 PM | Likes Like |Link to Comment
  • Dividend Focus: Novartis [View article]
    the tax is 15% by tax treaty with the Swiss and is FULLY offset for most US taxpayers that hold it in a taxable account. The yield in an IRA would therefore be about 3.8% which compares favorably with the 3.5% of JNJ.
    Apr 11, 2012. 03:52 PM | Likes Like |Link to Comment
  • Why I Am Buying These Global Dividend Stocks Now [View article]
    While I agree that once a year dividend payment for some (like NESN) and NVS may turn a few investors off - the foreign tax withholding issue is more complicated. The Swiss tax is 35% but the tax treaty rate for US taxpayers is 15% - which is also the amount of the US tax credit. So if you hold NVS in a taxable account the foreign taxes are not a big issue. Even in a 401K the over 4% rate dividend may still make it be attractive.

    Its too bad that SA is allowing a lot of articles on NVS with the incorrect dividend info.
    Mar 22, 2012. 04:27 AM | 1 Like Like |Link to Comment
  • Novartis' Pipeline Spells Out Strong Growth Potential [View article]
    You may also want to include, in your calculation of return, the fact that they have paid about $15 in dividends in the past 10 years.
    Mar 10, 2012. 06:57 AM | Likes Like |Link to Comment
  • More Sobering Views Of Housing Market [View article]
    A good rule of thumb for mortgage paydowns is that during the first 10 years of a 30 year mortgage you pay down 20%, the next 10 years 33% and the last 10 the remainder. So you may want to push back the recovery date.
    Mar 4, 2012. 08:30 AM | 1 Like Like |Link to Comment
  • 5 Innovative Healthcare Companies With Histories Of Strong Growth [View article]
    If the NVS dividend is $2.45 for 2011 (an increase over 2010) and the stock price is $56.50 how is this 2.9%?
    Feb 18, 2012. 04:35 AM | Likes Like |Link to Comment
  • 8 Foreign Stock Picks For 2012 [View article]
    Your welcome - Actually, for many of us, its 0%

    I'm long NVS and would also like to pick up some Nestle. People are scared off when they read about the withholding for Swiss stocks but should not be. For those of us in the US that hold our stocks in a regular (non tax deferred) account, the 15% taken out by the Swiss is given back as a Foreign Tax Credit (line 47 in the 2011 1040 tax form). Even if you held NVS in a tax deferred account and the 15% is taken out, your return still may be superior to a US stock such as JNJ. As a very conservative investor who is looking for some reasonably secure dividends there's a lot to like about this company.
    Jan 6, 2012. 04:51 AM | 1 Like Like |Link to Comment