I'm generally a more low and slow/ dividend focus investor.
My current portfolio has only SG exposure and I'm exploring dipping my feet in the US market.
But the 30% dividend with holding tax really puts me off especially when I can get comparable dividend yields in Singapore companies.
Is the allure of the US market its potential for explosive growth? (without any capital appreciation tax)
Yes, I would say the US is attractive mostly for its growth. Being the largest market in the world, the exchanges see large flows of capital everyday, which allows for such growth to occur.
Like you've mentioned, there's no capital gains tax and dividends are subjected to 30% withholding tax from the US. Moreover, many SGX stocks are worthy for strong dividend plays as well. As such, few look to the US for dividend stock positions.
Mainly for growth stocks! As you have rightfully pointed out, the attractive part in the US market lies in the capital appreciation of the US stocks which we do not have to pay taxes for.
Actually you have already answered it yourself - the high tax for US stocks vs tax exempt SG stocks! :)
Personally I hold positions in the 3 local banks and REITS to earn some steady dividends and a number of US stocks for growth purposes.
Yes! Usually in the US market, growth stock will be better as they have a 30% tax for their dividend...
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