Canada withholds 15% on dividends.. will appear as foreign tax paid on 1099 tax schedule.. Bank of Canada cut interest rate by 1/4% recently, so CAD is at 6 year low.. Central Bank said Canada is in a recession.Also the DXY is soaring.. and Oil is tanking.. all these are big negatives for Canada stocks especially if held by US citizens.
If you want to recapture the withholding don't put them in an IRA or tax sheltered account. I know from experience when I tried to get a rebate. The Canadian tax authorities make you do a fill-in-the-form tap dance that make American bureaucracies look simple to navigate! After my third form submission back and forth with them about my one stock holding I was informed that one set of forms was not enough for the duration of my holding but that I would have to file for each dividend, each quarter.
Considering further diversification into financials except REITs. Maybe insurers and (non-US) banks. BNS, RY and CINF ?
Anyone here with thoughts before I start digging into due diligence ?
Royal Bank of Canada (TSE:RY) insider Alex Douglas Mcgregor sold 12,012 shares of the company’s stock in a transaction dated Friday, June 19th. The shares were sold at an average price of C$77.28, for a total transaction of C$928,259.73.
A number of research firms have recently commented on RY. Analysts at National Bank Financial raised their price target on shares of Royal Bank of Canada from C$82.00 to C$83.00 in a research note on Wednesday, June 3rd. Analysts at TD Securities raised their price target on shares of Royal Bank of Canada from C$88.00 to C$90.00 and gave the company a “buy”
Sentiment: Strong Sell
Yes, Canadian tax will be withheld from RY dividends. But it's a wash, because the withholding counts against your US taxes. You don't have to file a Canadian return. Are the "UK" stocks you own actually American Depositary Shares? I think that the UK does the same as Canada if you own UK shares directly.
Does Canada make you pay a income tax on your Divs. ? UL and VOD and other UK stocks I own do not. There is an agreement between the countries I hear. Are there any current owners of RY in the US who have been receiving Div payments who can answer this question?