Investing

TSX Stocks that Pay US Dividends

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  • Jan 11th, 2020 11:25 am
[OP]
Newbie
Jan 19, 2016
63 posts
12 upvotes
Calgary, AB

TSX Stocks that Pay US Dividends

Hi,

I'm fairly new to investing and wanted to know how it works for companies in the TSX that pays dividends in US $ like Brookfield (BPY.UN, BEP.UN) or Nutrien (NTR)?

My account in the brokerage is a TFSA.

Thanks!
2 replies
Deal Addict
User avatar
Oct 14, 2015
1147 posts
762 upvotes
Brokers and currency conversion
Most Canadian discount brokers now offer Canadian dollar and US dollar sub-accounts. When holding a USD paying dividend paying stock in a CAD denominated account, there is no consistent method of handling the USD-CAD conversion and the imbedded foreign exchange charge that results.[3] Your first step should be to understand how your broker handles the conversion and at what, if any, cost of conversion exist for stocks that pay their dividends in USD.[4] One method to eliminate the currency conversion cost is to hold stocks paying dividends in USD in the US dollar sub-account.
https://www.finiki.org/wiki/Dividend_cycles
Deal Addict
User avatar
Nov 28, 2007
3115 posts
1008 upvotes
Whitehorse, YT
Your account would be CAD so your bank will convert the currency at their exchange rate. I have Methanex in a BMO account with a USD side and leave the USD dividend there so I have foreign cash on hand.

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