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Canadian banks
#11
Okay, it looks like under the current U.S./Canada Treaty is that your investments will be tax free if held in a ROTH IRA, so, no taxes withheld on your dividends.
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#12
Just posted on my blog: Sector Overview - Canadian Banks
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#13
(09-14-2015, 03:16 PM)Roadmap2Retire Wrote: Just posted on my blog: Sector Overview - Canadian Banks
Great summary of the Cdn banks. These are definitely Buy, Forget & Add stocks in your portfolio, at least they are in mine and I've yet to be disappointed.
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#14
Still worried about the tax aspect of it, for non US companies (CA in this case) in a normal *taxable* brokerage account, how are taxes held and declared?

Any americans with experience in this case?
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#15
(09-15-2015, 10:35 AM)Rasec Wrote: Still worried about the tax aspect of it, for non US companies (CA in this case) in a normal *taxable* brokerage account, how are taxes held and declared?

Any americans with experience in this case?

I do not yet own any Canadian companies, but my understanding is that Canada taxes the dividend when it's paid, but this can reclaimed by using a "foreign tax credit" when filing income taxes.
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#16
(09-15-2015, 10:29 AM)cannew Wrote:
(09-14-2015, 03:16 PM)Roadmap2Retire Wrote: Just posted on my blog: Sector Overview - Canadian Banks
Great summary of the Cdn banks. These are definitely Buy, Forget & Add stocks in your portfolio, at least they are in mine and I've yet to be disappointed.

Agreed. Definitely the "buy and forget" category for most of these banks. I have been adding a few shares regularly through the year and will do doing so. Cant pass up this opportunity when they are trading at PE 10-11 and Forward PE 9-10. EPS growth also looks good for most banks going forward.
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#17
Just posted an article on the threats facing Canadian banks from the US/International investor's perspective

http://seekingalpha.com/article/3819186-...ook-threat
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#18
Thanks for the article!
As Dividend Watcher said in the SA comments section the dividends paid in CAD isn't really an issue when still in the reinvesting phase. I know that I never convert my CAD to EUR, I simply buy more from Canada. This will of course change at some point (in a couple of decades?) when I'll actually need my dividends to provide cash for living expenses. But guessing where currencies will be on such a long term... I'm not even going to try. In fact I'm not even sure where I'll be living then, for all I know I could be in Canada using CAD to buy my food.

Right now I see the weakness of CAD more as a good thing for me as I'm regularly converting EUR -> CAD to fund new purchases.
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#19
Yup, thats the right way to look at things. As DivWatcher said, it all averages out. And you have the right approach - invest for the long term, keep averaging up or down, and take advantage of the current currency trends when its in favor.

We Canadians are on the losing end currently - with our food prices going off the roof and our central bank governor cheerleading the drop in currency.
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#20
(09-15-2015, 10:35 AM)Rasec Wrote: Still worried about the tax aspect of it, for non US companies (CA in this case) in a normal *taxable* brokerage account, how are taxes held and declared?

Any americans with experience in this case?

Taxes are held from the dividend cash distribution in a brokerage account, with the US-CAD Tax Treaty there is no double taxation, as a US investor there is a 15% foreign tax exemption. If CAD investments are held in a retirement account such as a ROTH IRA it's all tax free under the current policies.

In my brokerage account I receive all dividends in cash for later investments, regardless of company-country origin. In my ROTH account it's a mixture of both--all my foreign investments are dripped and currently the US companies are selectively dripped or dividends received in cash unless or until the maximum $5500 is allocated then after that, all dividends are dripped until the new year. In order to be a more disciplined investor I contribute weekly in the ROTH then as monthly dividends come in I allocate the dollars to a stock once the cash reserves hit $1000 to 1500. If I put in $5500 this morning, I won't hold onto it, it will be invested within hours, I have ZERO CONTROL with cash in my account! It's extremely difficult in times like the one we're currently experiencing because I see a lot of great buys and want to invest right now rather then later. Okay, I'll stop now because I went off on a tangent.
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