All about Dividends

[Perisher]

Hello!

Can I check if I am going to receive Dividend from a stock that is Domicile in Switzerland, Swiss resident company.
Swiss company listed in London Stock Exchange, LSE.
How can we go about submitting the relevant tax document?
The stock is held under Standard Chartered Equity Trading.

The company that I bought is Ferrexpo. One of large steel company in the world.

https://www.admin.ch/gov/en/start/documentation/media-releases.msg-id-37772.htmlOnly 5% tax base on this article.

https://www.ferrexpo.com/media/qlcngb1i/dividend-letter-2022-interim-dividend-28-jun-2022.pdfThis is their dividend announcement.

But I am not sure how does submitting the swiss or iras document for such company works.
Does anybody have experience on receiving dividend from Swiss or Switzerland company?

Thank you so much!

direct you to the pro who might have some idea.
@Shiny Things

 

[Shiny Things]

direct you to the pro who might have some idea.
@Shiny Things

I've got no idea unfortunately. You might need to have a quick chat with a tax lawyer about this one.

 

[AtheistcumCatholic]

On dividends, anyone found that he/she was shortchanged or didnt received it?
i rarely check, i just glance them over.

 

[sohguanh]

On dividends, anyone found that he/she was shortchanged or didnt received it?
i rarely check, i just glance them over.

For SGX stocks that reside in CDP quite sure won't eat our dividends. For those new brokers with custodian not so sure may need to check periodically

 

[henrylbh]

On dividends, anyone found that he/she was shortchanged or didnt received it?
i rarely check, i just glance them over.

Never short changed before, whether cdp or cpfis. Dividends are duly credited on Pay Date as announced.

Only once, I noted that my account was credited more by $500. Upon checking my records, I found that I have omitted one of purchases for almost a year

 

[soneat]

I am a dividend guy so I receive dividend regularly. All in CDP.

For the past decade, there was only once where CDP did not credit the dividend on the actual pay date.
When I called the following day, they mentioned they knew that specific distribution had some issue and they will credit it once resolved.

 

[homer123]

The only thing to console me about my paper loss is my record dividend received in Sep..If 2023 continue with its current interest rate hike, I bet my dividend income will be cut by 30%..

https://globalincome50.blogspot.com/2022/10/sep2022-finance-update-monthly.html

 

[homer123]

My dividend income hit record high in 2022 after starting dividend investing in 2017

 

[limster]

Same. 2022 was a record year for dividends for me. I achieved Financial Independence through passive income in 2021. Anything extra in 2022 just adds to my 'margin of safety'

 

[Belle69]

Thank you for this thread.

I know an uncle who accumulate/held 50000 DBS shares for 25 years.

His average cost is $15

He rather get divd than rental property

His logic no need to bother find tenant,rental tax,condo maintenance

 

[Nofear40]

Thank you for this thread.

I know an uncle who accumulate/held 50000 DBS shares for 25 years.

His average cost is $15

He rather get divd than rental property

His logic no need to bother find tenant,rental tax,condo maintenance

And no need to pay ABSD

 

[homer123]

And no need to pay ABSD

In Spore, there is no tax for dividend which is another plus

 

[homer123]

This former banker earns over $250,000 a year from dividends​

https://www.businessinsider.com/ban...kets-sf&utm_medium=social&utm_source=facebook

"If you want to live off dividends, you have to start in your mid-20s. If you don't start until you're 40, it gets pretty darn expensive," he said.

Jonen has 101 open positions in his portfolio: 97 stocks and four ETFs. "It takes a bit of work," he said, adding that he spent an average of about two hours a day on his portfolio.

The four ETFs in his portfolio focus on dividends, he said.

They are the Vanguard FTSE All-World High Dividend Yield, which "covers almost everything worldwide that pays dividends," the iShares STOXX Global Select Dividend 100, which picks 100 "promising stocks," the iShares Asia Pacific Dividend, and the iShares Emerging Markets Dividend, he said.

The latter two focus on the Asia Pacific region and developing countries, respectively.

 

[DevilPlate]

From SG investor perspective:
1) 15% tax on dividend income (ETF listed on LSE)
2) Denominated in USD

Stopping me from buying into dividend paying low-cost ETF.

 

[homer123]

From SG investor perspective:
1) 15% tax on dividend income (ETF listed on LSE)
2) Denominated in USD

Stopping me from buying into dividend paying low-cost ETF.

I believe the 15% tax is on US ETF,.. If you buy LSE listed global dividend ETF ex US like VDPX.L or IDAP.L , there might be no WHT.. Better check with @limster

 

[limster]

I believe the 15% tax is on US ETF,.. If you buy LSE listed global dividend ETF ex US like VDPX.L or IDAP.L , there might be no WHT.. Better check with @limster

The ETF manager whose fund is domiciled in Ireland will pay what withholding taxes are due on the shares the fund holds. If the fund holds US stocks, the fund manager has to pay 15% WHT. If the fund holds Australia stocks, there is a 15% WHT which I assume the fund manager in Ireland can reduce through the use of franking credits. If the fund holds China, I believe the WHT is 10%.

Asia Pacific ETFs like VDPX have about 4% dividend yield which is nice. Its one of my largest holdings.

I also hold the Australia domiciled IOZ. The dividend withholding tax payable is around 7% rather than 15% because the fund manager is able to make use of the franking credits to reduce the effective WHT.

The worst thing a SG dividend investor can do is to hold a US domiciled ETF that hold China stocks. The US fund pays the 10% WHT for the China stock, and then you get whacked 30% for US WHT tax. Not to mention the political risks.

 

[homer123]

The ETF manager whose fund is domiciled in Ireland will pay what withholding taxes are due on the shares the fund holds. If the fund holds US stocks, the fund manager has to pay 15% WHT. If the fund holds Australia stocks, there is a 15% WHT which I assume the fund manager in Ireland can reduce through the use of franking credits. If the fund holds China, I believe the WHT is 10%.

Asia Pacific ETFs like VDPX have about 4% dividend yield which is nice. Its one of my largest holdings.

I also hold the Australia domiciled IOZ. The dividend withholding tax payable is around 7% rather than 15% because the fund manager is able to make use of the franking credits to reduce the effective WHT.

The worst thing a SG dividend investor can do is to hold a US domiciled ETF that hold China stocks. The US fund pays the 10% WHT for the China stock, and then you get whacked 30% for US WHT tax. Not to mention the political risks.

Thanks.. so VDPX 4% yield is the exact amount you received?

 

[limster]

Thanks.. so VDPX 4% yield is the exact amount you received?

Yes I received the full amount of dividends that Vanguard declares. The broker doesn't need to withhold anything.

Anyway, apart from foreign ETFs, an easy way for SG investor to gain foreign exposure would be REITs like FLCT or Capitaland Ascott which hold mainly overseas properties. There appears to be zero withholding tax or any additional tax at the moment - compared to holding a REIT listed in UK or US where withholding tax is applicable.

I am vested in both and I feel that Capitaland Ascott looks cheap at the moment, maybe because their properties are recession-sensitive, so I am adding more.

 

[DevilPlate]

Yes I received the full amount of dividends that Vanguard declares. The broker doesn't need to withhold anything.

Anyway, apart from foreign ETFs, an easy way for SG investor to gain foreign exposure would be REITs like FLCT or Capitaland Ascott which hold mainly overseas properties. There appears to be zero withholding tax or any additional tax at the moment - compared to holding a REIT listed in UK or US where withholding tax is applicable.

I am vested in both and I feel that Capitaland Ascott looks cheap at the moment, maybe because their properties are recession-sensitive, so I am adding more.

Alot of our blue chip S-reits has expanded their portfolio overseas (which has been a drag in their DPU performance though)

 

[henrylbh]

Same. 2022 was a record year for dividends for me. I achieved Financial Independence through passive income in 2021. Anything extra in 2022 just adds to my 'margin of safety'

My dividends will hit record high over last year's record. I have 1m Asti shares written off last year due to delisting and suspension with last traded price of 1.4c.

This year it just announced a dividend of 0.45c amounting to $4,500 or 22.44% on my cost There were 2 off market deals this month at 2.8c against my holding cost of 2c. Hopefully the deal would trigger a takeover.