RDS.B (RDS-B on Yahoo)

[hendi_alex]

This stock has a long history of moderate but steady dividend increases. Shares are moving closer to the low end of their yearly trading range. Yield is over 5%. RDS.B has no foreign taxes withheld. I bought shares recently and plan to slowly accumulate. RDS has less exposure to volatile production areas than is the case with many of the big producers.

[ChadR]

This is on my short list of potential purchases. I like the company and the industry. With a yield of over 5% and a P/E under 10, there's not much to dislike. I will hopefully be starting a position in it before the end of the year.

[rapidacid]

For anyone who owns RDS.B and is on TD Ameritrade / TOS ... does your position accurately show up in the TOS platform? I bought RDS.B earlier this week but had to actually use the web version of TDA because RDS.B is recognized on TOS but doesn't have any data ( bid / ask, latest price ) associated with it

When I plug in RDS/B into TOS it pulls up as "Royal Dutch Shell PLC ADS Class B" and has price and bid / ask and everything

The line item for RDS.B on my account listing has a market value of $0 and a P/L% of -100%



My account value actually lists as about $9K lower ie. $0 value for RDS.B

I'm not afraid that the value of what I bought is $0, but, did I buy the wrong instrument? I'm in America.

[rapidacid]

Pretty sure all Americans buying class B pay 0% tax withholding

http://www.joshuakennon.com/royal-dutch-...-b-shares/

Quote:To summarize again, all in one place, this means if you wanted to buy stock in Royal Dutch Shell, your options were:

Class A shares in Amsterdam, quoted in Euros, dividends in Euros (but you can ask for Pound sterling, instead), 15% dividend withholding tax.
Class B shares in Amsterdam, quoted in Euros, dividends in Pound sterling (but you can ask for Euros, instead), no dividend withholding tax.
Class A shares in London, quoted in Pound sterling, dividends in Euros (but you can ask for Pound sterling, instead), 15% dividend withholding tax.
Class B shares in London, quoted in Pound sterling, dividends in Pound sterling (but you can ask for Euros, instead), no dividend withholding tax.
Class A ADR in New York, representing 2 shares of the Class A stock, quoted in U.S. dollars, dividends in U.S. dollars, 15% dividend withholding tax
Class B ADR in New York, representing 2 shares of the Class B stock, quoted in in U.S. dollars, dividends in U.S. dollars, 0% dividend withholding tax
The Class B shares were subject to no withholding from the Dutch Government, while the Class A shares were unless you were exempt through some special loophole.

This effectively lets an investor in Royal Dutch Shell select whichever is most beneficial for him or her. You can receive Euros, Pound sterling, or U.S. dollars. You can have Dutch withholding taxes taken out of your dividends or not.

[EricL]

These questions are why I choose to invest in American companies. Is RDS really that much better of an option than XOM, CVX, OXY, COP that its worth the headache?

K.I.S.S. all day for me.

[rapidacid]

Response from TDA:

Quote:Thank you for your email. Due to differences in our back-end system between thinkorswim and the TD Ameritrade website, this symbol reads differently. If you are interested in looking up the security on thinkorswim, you will need to enter RDS/B in the symbol look up section. For the position you currently hold, the P/L and cost basis will not be displayed since it cannot read RDS.B on thinkorswim. To view the accurate P/L, please feel free to visit your Positions or Gain/Loss section on the TD Ameritrade website.

[rayray]

I own RDS.B shares and there are no foreign tax implications; however, when you receive shares in lieu of cash you will get RDS.A shares which does have foreign tax consequences. It all depends on your brokerage, sign up for the Scrip Programme (that's how they spell it) in order to exclude the foreign tax. If you don't want to deal with this Scrip Programme, purchase RDS.B shares and receive your dividends in cash. Again, brokerages may be different, in other words, even though a Scrip Programme is available a brokerage does not have to participate or offer the program to the investor.

This is in regards as a U.S. investor.

And might I add, if this purchase is in a regular brokerage account and not a retirement account of any sort then the purchase of RDS.A vs RDS.B shares does not really matter for the fact there is a U.S. foreign tax exemption that nullifies the 15% foreign tax. But, this foreign tax exemption does not work if shares held in a retirement account of any sort--that's when you have to sign up for the Scrip Programme.

[rayray]

As an U.S. investor


RDS.B shares are UK based and therefore no foreign tax withheld, if held in a retirement account such as a ROTH IRA, no taxes due. However, if RDS.B shares are held in a brokerage account you are liable to pay your taxes on dividends received.

RDS.A shares are Dutch based and carries a 15% foreign tax that can be loop-holed by utilizing the U.S. Foreign Tax Exemption agreement as long as the RDS.A shares are held in a brokerage account. If held in a retirement account you loose the ability to use the Foreign Tax Exemption.

If RDS.A shares are held in a retirement account the 15% Dutch tax can be nullified if you take advantage of the Shell Scrip Programme, you have to sign up through your Brokerage and unfortunately not all Brokerages participate in the program.

In short as a U.S. investor it's easier to own RDS.B shares and receive the dividends in cash.

If you decide to drip the divi's you'll end up with RDS.A shares complicating matters whether held in a retirement or non-retirement account. As an investor your foreign tax loop-holes are the RDS Scrip Programme and the U.S. Foreign Tax Exemption, it just depends on your Brokerage and what kind of account used.

[rayray]

My RDS.B shares are held in a ROTH IRA, so it's a no brainer during tax time, assuming the shares are held in a brokerage account and treated as ordinary dividends I would have to agree that the dividends would be treated as such during tax time just as any other ordinary dividend.

[rapidacid]

(08-27-2015, 07:52 AM)rapidacid Wrote: For anyone who owns RDS.B and is on TD Ameritrade / TOS ... does your position accurately show up in the TOS platform? I bought RDS.B earlier this week but had to actually use the web version of TDA because RDS.B is recognized on TOS but doesn't have any data ( bid / ask, latest price ) associated with it

When I plug in RDS/B into TOS it pulls up as "Royal Dutch Shell PLC ADS Class B" and has price and bid / ask and everything

The line item for RDS.B on my account listing has a market value of $0 and a P/L% of -100%



My account value actually lists as about $9K lower ie. $0 value for RDS.B

I'm not afraid that the value of what I bought is $0, but, did I buy the wrong instrument? I'm in America.

FYI for TOS / TDA users, if you have RDS.B as $0 value in your TOS app you have to write to TDA and have them upgrade you from Basic to Advanced Active Trader ... doesn't cost anything and you get a few more valuable bells + whistles on TOS ... they upgraded me last night and now my RDS.B value is showing correctly in TOS