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iTrade and Brookfield Companies

  • Last Updated:
  • Jan 14th, 2019 6:41 pm
[OP]
Member
Jul 17, 2011
263 posts
86 upvotes
TORONTO

iTrade and Brookfield Companies

I am trying to resolve an issue whereby I was not paid my last distribution from Brookfield Infrastructure Partners in US dollars, even though I hold my shares on the US side of my iTrade account. After many conversations, the customer service people are all telling me that because I am a Canadian resident, I must be paid the distribution in Canadian dollars (which they have converted back into US dollars, while taking their cut for a FX fee). They say this is the case for all their customers holding Brookfield stocks.

I would like to fact check this assertion. If you are a Scotia iTrade customer (Canadian resident) who holds shares in a Brookfield company on the US side of your account, would you let me know please if you receive the original US distribution amount, or some converted (and lesser) one?

I should also point out that I own other Brookfield companies in a competing brokerage, always on the US side of my account, and I have never had an issue receiving the original US dollar dividend.

Thank you in advance.
1 reply
Member
Jun 28, 2018
422 posts
229 upvotes
Toronto
Not a Brookfield entity holder (except for BAM.PR.E). That is really weird, but it may be due to the way the companies are structured with their tax sheltering plays.


From the BIP website that is what happens. You get paid in the Canadian dollar equivalent, BUT you can request that you receive it in US Dollars. Loophole? I guess the brokerage can run it through a conversion?
Registered unitholders who are U.S. residents receive their dividends in U.S. dollars, unless they request the Cdn. dollar equivalent. Beginning with the Q4 2016 distribution, registered unitholders who are Canadian residents and beneficial unitholders whose units are registered in the name of CDS or a name other than their own name (i.e., generally those holding their LP Units with a Canadian brokerage),will receive their dividends in the Canadian dollar equivalent, unless they request to receive dividends in U.S. dollars. The Canadian dollar equivalent of the quarterly dividend is based on the Bank of Canada closing exchange rate on the record date for the dividend.
https://bip.brookfield.com/en/stock-and ... on-history
The Distracted Investor

Dividends through quality companies 😃 Though I usually lose money with trades :facepalm:

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