Q: Hello
I noted in one of your responses that Brookfield Corp pays dividend in USD.
If so, do we have to hold the stock in USD Currency, in order to receive dividends in USD ?
Also, are the USD Dividends received from Brookfield Corp, eligible for Canadian Dividend Tax Credit or the dividends have to be received in CAD, in order to qualify for the Tax Credit ? ( So, we should move the BN to CAD side of the portfolio ? ).
Thank You
I noted in one of your responses that Brookfield Corp pays dividend in USD.
If so, do we have to hold the stock in USD Currency, in order to receive dividends in USD ?
Also, are the USD Dividends received from Brookfield Corp, eligible for Canadian Dividend Tax Credit or the dividends have to be received in CAD, in order to qualify for the Tax Credit ? ( So, we should move the BN to CAD side of the portfolio ? ).
Thank You
5i Research Answer:
The dividend tax credit applies no matter where the stock is held (non-registered account) as BN is a Canadian company. It does pay the dividend in US dollars. We would prefer then to own it in a US dollar account. HOWEVER, we have been told that some brokers automatically convert the dividend. Thus, we would check with one's broker to ensure their policies before deciding which account.