SCHD is an ETF that tracks the performance of U.S. companies that pay dividends on a regular basis. It is a good option for investors looking for a steady stream of income from their investments.
Are you looking for income?
However, since you are living outside of the US, and if you are considering adding SCHD to your portfolio, it is worth noting that there is a 30% withholding tax on the dividends paid by the fund. This means that 30% of the dividends paid out by the companies in the fund will be withheld and paid to the US government as taxes, and you will only receive the remaining 70%.
So, if you are living outside of the US, it may not be worth investing in SCHD due to the high withholding tax on dividends. Instead, you may want to consider other investment options that are better suited to your tax situation.
Did you know there other ETFs that track the performance of other countries' dividend-paying stocks which might be more suitable for you as it may have lower withholding tax or even none at all.
Here are some:
- iShares Asia High Dividend Yield ETF (IAHD): This ETF tracks the performance of high-dividend paying companies in the Asia-Pacific region, including countries such as Japan, Australia, and Hong Kong.
- iShares MSCI ACWI ex U.S. Dividend Growers ETF (DGRW): This ETF tracks the performance of companies outside the United States that have a history of consistently growing dividends.
- iShares Global Dividend 100 ETF (IHDV): This ETF tracks the performance of 100 global companies that pay dividends on a regular basis.
- iShares MSCI Singapore Dividend Opportunities ETF (DVND): This ETF tracks the performance of companies in Singapore that pay dividends on a regular basis.
PS: It is always important to do your own research and consult with a financial advisor before making any investment decisions
SCHD is an ETF that tracks the performance of U.S. companies that pay dividends on a regular basis. It is a good option for investors looking for a steady stream of income from their investments.
Are you looking for income?
However, since you are living outside of the US, and if you are considering adding SCHD to your portfolio, it is worth noting that there is a 30% withholding tax on the dividends paid by the fund. This means that 30% of the dividends paid out by the companies in the fund will be withheld and paid to the US government as taxes, and you will only receive the remaining 70%.
So, if you are living outside of the US, it may not be worth investing in SCHD due to the high withholding tax on dividends. Instead, you may want to consider other investment options that are better suited to your tax situation.
Did you know there other ETFs that track the performance of other countries' dividend-paying stocks which might be more suitable for you as it may have lower withholding tax or even none at all.
Here are some:
PS: It is always important to do your own research and consult with a financial advisor before making any investment decisions