O say can you see … all the great dividend stocks south of the border? With about 78 per cent of Canada’s benchmark index made up of just three sectors – financials, energy and materials – many Canadians are looking to the United States to diversify their portfolios. It’s a prudent strategy, given the broad selection of U.S. consumer, health care and industrial stocks – sectors badly under-represented in Canada.
But before you start painting your portfolio red, white and blue, here are some things to watch out for. U.S. stocks don’t qualify for the dividend tax credit, so if you hold them in a non-registered account, the taxman will take his full pound of flesh. Even if you minimize your taxes, pick your stocks carefully and hold through thick and thin, your gains could be wiped out if the currency market moves against you. Brokers love clients who buy and sell U.S. stocks and receive U.S. dividends in registered accounts. That’s because, in addition to charging trading commissions, they collect a hefty currency conversion fee that can range from 0.5 per cent to more than 1.5 per cent on every transaction.
Source: Globe & Mail
Related Articles:
- 7 High-Yield Dividend Achievers With 25 Years of Increases
- There's Gold In Them Thar Dividend Stocks
- 6 Tech Stocks With A History of Growing Their Dividends
- Buy And Hold Is Not Buy And Forget
- 6 Higher-Yielding Consumer Stocks With A History of Rising Dividends
Look before you leap into U.S. dividend stocks
Posted by D4L | Tuesday, November 22, 2011 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
Investors wanting to enjoy steady and consistent income should consider dividend aristocrats. In fact, even in these chaotic times, dividend...
-
The best dividend stocks have one thing in common: resiliency. They can continue increasing their dividends even in the harshest economic en...
-
Higher dividend yields often imply that the underlying company paying the dividend has a higher risk profile. However, that's not always...
-
Dividends and diversification -- those two things can help you achieve a comfortable retirement when combined with the income you will recei...
-
A select group of monthly dividend stocks pays dividends at a rate of 10% or higher. Those are the ones on this list. Investors should be aw...
-
It's hard to beat a sustainable, high-yield dividend paired with a beaten-down valuation. The best dividend stocks offer high yields and...
-
How high is too high when it comes to dividend stocks? Of course, every income investor wants as much yield as possible. However, they also ...
-
When hunting for discounted investments, one excellent starting point is to look for businesses with dividend yields trading above their fiv...
-
Strange but true: seniors fear death less than running out of money in retirement. And unfortunately, even retirees who have built a nest eg...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.