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Anonymous
Given the 30% withholding tax on dividend income, is it still worth investing in US dividend stocks? US stocks generally seem to have a longer track record of dividend growth, a better chance of capital appreciation, and your income is in USD. Might it be better to just buy stocks closer to home with slower growth but higher yields?
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Yu Qi Tan
09 Dec 2020
Student Ambassador 21/22 at Seedly
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Jonathan Chia Guangrong
01 Dec 2020
SOC at Local FI
Frankly, they are not really worth it as better yielding counters are available here (like s-reits). Not to mention the 30% withholding tax as mentioned by others.
If you are really keen to buy into US dividend stocks, research the list of dividend aristocrats and kings. Then sell put options at a price you are willing to pay to own the stock. This helps to reduce the cost of the stock purchase. If the option contract expires worthless, open a new one and repeat until you get assigned the stock.
You'll need to hold the stock position for the extreme long term to negate the effect of the withholding tax via increasing dividends.āāā
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For dividend, SG is a much better market!
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Sharon
01 Dec 2020
Life Alchemist at School of Hard Knocks
US market is for capital growth. In 3 months, the profit I get with my growth stocks is 2.5x my whole year SG REITs/Trusts dividends. Capital gains are not taxed, but dividends are.
If you still prefer dividends, one workaround that I discovered by accident, was when I bought NetEase on HKEX, the quarterly dividends are in USD and these are not taxed.
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Generally no since there is a 30% witholding tax and local dividend stocks can provide equivalent di...
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Generally speaking, the 30% withholding tax will eat into your gains. Usually for dividends, singapore market would be ideal since capital gains is tax free and dividends from reits is tax free as well. The ideal plan would be to grow your portfolio size through capital gains via overseas markets such as the US and once it gets big enough you can take a portion of it to invest in dividend generating companies or reits in singapore. This is because a 5% dividend yield on 10k is $500 but a 5% dividend yield on 500k would be 25k... Hope it helps!