Trying to undestand what if any percentage of the dividends may be witheld because this is an ADR. I own BP and VOD and I I understand what they do.
What does BP and VOD do? Thinking about investing in them too? thanks
This is interesting. I just posted a question about GSK dividends and what do actually receive in the end.
Basically, two companies:
Company A (US Corp) pays out a 5% yield which equals .50 per share or $50.00 dividend
Company B (Foreign Co's like GSK, VOD, BP) pays out 5% yield which equals .50 per share or $50.00 dividend.
I'm in 25% marginal tax rate.
Are there any hidden costs/taxes subject to foreign divi over US divi? or am I only going to pay the 15% tax on both as an ordinary dividend.
Maybe I need to call Fidelity and ask too.
my bank takes out $2 every time i get a vod dividend but none on gsk
they are both taxed as regular dividends
If you held either for more than 60 days prior to getting the dividend, they should have been "qualified" dividends and eligible to be taxed at the 15 % rate.
It has been a very long time since foreign taxes were withheld on the GSK ADR, and unless your broker withholds taxes on dividends, there will be none withheld.
this is British company, so no withholding by UK Govt..for US residents, they do held back on british REITS