Anyone Buy Foreign Dividend Stocks in IRA?

[Bogart]

Would you ever consider buying a foreign dividend stock in an IRA even with them withholding 25-30% of the dividend? Would it matter if you had 30 years until retirement and you believed the stock could provide good stock and dividend appreciation?

[rayray]

There are plenty of foreign investments within countries that have U.S treaties to deflect handing over a percentage of your investment dollars. There are also agreements/programs that some companies use that benefit certain shareholders. So, the answer for me, would be a no, unless I was already invested and the said rules above changed then I would have to exit that would benefit me and my family.

Also, with a foreign tax exemption in regular brokerage accounts, why give up dollars when you can have that same investment and keep more for yourself, if you're a U.S. citizen/tax payer.

[ChadR]

The only foreign stocks that I own in my retirement accounts are BP, RDS, and BBL. And only because of the tax treaty with the US. No point in giving away 25-30% of my dividends. Own those in a taxable account so that you get your money back when you file your taxes.

[Robandcindy2]

Sure...

I have Canadian and UK (Bermuda too) stocks in my IRA and 401K (as long as they are ADR's on a US exchange-401K rules).

I keep high taxed companies (NVS, SYG, etc) in a taxable account to recoup some of the taxes.

Some good info here:

http://www.dividend.com/dividend-educati...nd-stocks/

http://seekingalpha.com/article/248039-w...-dividends   (He has some good articles-see his profile at SA)

http://www.morningstar.com/cover/videoce...?id=630131

Happy Dividending!

[DividendGarden]

(03-30-2016, 11:56 AM)ChadR Wrote: The only foreign stocks that I own in my retirement accounts are BP, RDS, and BBL.  And only because of the tax treaty with the US.  No point in giving away 25-30% of my dividends.  Own those in a taxable account so that you get your money back when you file your taxes.

We also own these in taxable IRA's.