Questions from our Subscribers
From time to time, we’ll publish questions from our readers that may apply to many of your individual situations. Please don’t hesitate to write us for clarification on any of our recommendations or general investment questions. However, we are unable to give specific individual investment advice or opinions on investments not recommended in our pages.
Question: Is the BP plc dividend qualified?
Nancy: I contacted BP Investor Relations and received this reply:
US federal income taxation:
A US holder is subject to US federal income taxation on the gross amount of any dividend paid by the company out of its current or accumulated earnings and profits (as determined for US federal income tax purposes). Dividends paid to a non-corporate US holder in taxable years beginning after 2012 that constitute qualified dividend income will be taxable to the holder at a preferential rate, provided that the holder has a holding period in the ordinary shares or ADSs of more than 60 days during the 121-day period beginning 60 days before the ex-dividend date and meets other holding period requirements. In the case of a non-corporate US holder whose taxable income does not exceed $400,000 ($450,000 in the case of a joint filer), such dividends will be taxed at a maximum rate of 15%. Such dividends paid to a non-corporate US holder whose income is above these dollar thresholds will be subject to tax at a rate of 20%. These dollar thresholds will be adjusted for inflation for tax years after 2013. Dividends paid by the company with respect to the shares or ADSs will generally be qualified dividend income.
Question: I found your Dundee REIT (D-UN.TO) recommendation in Yahoo Finance ($29 REIT) but couldn’t find the symbol in my Scottrade account. I called Scottrade and they gave me a different symbol but when I went to place the trade it was only $9 not $29.
Nancy: This is a Canadian stock, and not all brokerage companies use the same stock symbols. To make sure you’re receiving the right stock, I recommend that you speak to your broker directly. That way, there won’t be any confusion.
Question: What’s the difference between AQN recommended now and AQUNF recommended previously? I have 3,000 shares of AQUNF and I generally buy more of a stock you recommend that I already own.
Nancy: AQUNF is traded over the counter in the U.S., and AQN is on the Toronto exchange. The recommendation came from a Canadian advisor and he used the Toronto version. However, they are the same company.
