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re: Your best dividend stocks?
Posted on 1/3/16 at 12:59 pm to Htown Tiger
Posted on 1/3/16 at 12:59 pm to Htown Tiger
quote:Capitaloneinvesting (old Sharebuilder) will re-invest dividends for you with no charge, for any of your stocks.
Side question: It looks like Scottrade only allows you to select 5 stocks to include in their DRIP program. Is that right? Does anyone know if TD Ameritrade or others allow more?
Posted on 1/3/16 at 1:08 pm to TigerTatorTots
quote:
If you are in the US, make sure its RDS-B, not A...for tax purposes
RDS-A = ADR (American Depository Receipt) of RDS.B...avoids foreign taxes.
I have many RDS-A shares with no greater concerns over taxes than I do with any American company in portfolio.
Posted on 1/3/16 at 3:19 pm to BayouSizzle
RDS-A is the Netherlands based section of Shell. RDS-B is the UK based section. Because of Dutch law, RDS-A withholds taxes on a portion of its dividend. RDS-B does not. RDS-B generally trades at a slightly higher price because of this.
quote:
The short answer:
The two share classes are essentially equivalent except for withholding tax on dividends.
RDS.A with dividends paid in cash or reinvested via a broker's own DRIP - 15% Dutch withholding tax on dividends.
RDS.A with dividends reinvested via Shell's Scrip Dividend Programme - no Dutch withholding tax on dividends.
RDS.B - no Dutch withholding tax on dividends.
Investors who reinvest dividends via Shell's Scrip Dividend Programme should own A shares (yes, even in an IRA). This is not only because A shares are cheaper, but also because the SDP pays dividends only in A shares. If you are interested in this program, call your broker and ask if they participate and how to sign up.
Investors in tax-deferred or tax-exempt accounts such as IRAs should own B shares unless they are enrolled in the Scrip Dividend Programme. This is because there is no practical way to recover foreign tax withheld in an IRA.
Investors in taxable accounts not enrolled in Shell's SDP can often recover all or a major portion of the Dutch withholding tax via the Foreign Tax Credit. Small investors with total foreign taxes of $300 or less ($600 if married filing jointly) who are not subject to the Alternative Minimum Tax and who have at least $300/$600 in U.S. tax liability get 100% recovery via a single line item on Form 1040; otherwise Form 1116 is usually required and your recovery may be limited. Investors in taxable accounts who can recover all or almost all of their foreign tax withholding should own A shares since they are cheaper. If recovery is significantly limited, B shares may be the better choice. See IRS instructions for the Foreign Tax Credit or your tax advisor for more details.
This post was edited on 1/3/16 at 3:30 pm
Posted on 1/3/16 at 4:37 pm to tokenBoiler
quote:
tokenBoiler
Thanks, just opened up an account there. Trade fees are on par with Scottrade as well.
Posted on 1/3/16 at 9:49 pm to Htown Tiger
quote:
Curious to get people's feedback on this portfolio make-up for 2016. Going to invest in these 6 dividend stocks quarterly; goal is long-term hold of at least 20 years:
Stock Name Yield Price
MCY Mercury General Corporation Com 5.22 $46.57
XOM Exxon Mobil Corporation Common 3.69 $77.95
OHI Omega Healthcare Investors, Inc 6.33 $34.98
ETP Energy Transfer Partners, L.P. 12.8 $33.73
T AT&T Inc. 5.5 $34.41
HP Helmerich & Payne, Inc. Common 5.08 $53.55
Can comment on some of those:
XOM and CVX are the two best of the big oil companies; have owned both, may buy back one or both soon
OHI and HCP are the two best ETFs in healthcare office rentals; I own HCP but OHI just as good
ETP is a subsidiary of ETE. I own ETE, it has been beaten up badly but likely has hit bottom. For the long term should be fine
ATT pays great dividends and their purchase of Directv gives them extra security. I have owned it for many years.
You might consider adding MO or RAI. Both solid companies. I have owned MO for years it has been my top performer.
I am just an individual investor. Please consult other sources before making your decisions.
Posted on 1/3/16 at 10:11 pm to Tigertracks
quote:
Tigertracks
Thanks for the feedback
I'm also considering PM.
Posted on 1/4/16 at 8:40 am to BayouSizzle
quote:Well, if you are OK with not receiving your entire dividend, then sure. A portion of RDS-A's dividend is taken out as a tax before it is paid out to you.
I have many RDS-A shares with no greater concerns over taxes than I do with any American company in portfolio.
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