Quote:
Originally Posted by Slava
^ I feel like the US dividend withholding tax is blown out of proportion. Depending on the account you have in Canada, it's a non-factor. But even so, let's say you buy a company that pays you a dollar in dividends. The IRS holds back $0.15 and you get $0.85...which isn’t an enormous deal for the added diversity and opportunities south of the border.
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Withholding tax does provide another level of tax drag. If you want US stocks (and most people should), it's part of the deal. However, persuing a dividend strategy with US stocks does face a pretty significant headwind.