Canadian Stocks Paying $US Dividends

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Arby
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Canadian Stocks Paying $US Dividends

Post by Arby » 22 Dec 2014 14:53

There are a few Canadian companies that pay their dividends in US currency.The dividends are still considered as eligible Canadian dividends for tax purposes, and will benefit from the Canadian dividend tax credit. In most cases, if you hold these stocks in the US side of your stockbroker account, the dividends will remain as US dollars when they are credited to your US dollar investment account. I have included a list of these companies below.

A few of the companies have an unfortunate policy if the stock is held by a Canadian resident, where they will automatically convert the US dollar dividends to Canadian dollars. Those companies are indicated with an asterisk (*) in the list below. The stocks with an asterisk should not be held in the US side of your broker account, since the dividends will undergo a double currency conversion, (i.e. the company's automatic conversion policy for Canadians will convert the dividend from $USD to $Cdn, and then the stockbroker will convert from $Cdn to $US if the stock is held in the US side of your account). For those companies with an asterisk, it may be possible to receive the dividend in US currency if the shares are held in a Transfer Agent account, rather than in a stockbroker account.

Also note that a few of the companies are structured as Limited Partnerships, and only a portion of their distributions may be in the form of eligible Canadian dividends.

Canadian Common Shares Paying Dividend in $US
Algonquin Power (AQN)
* Agrium Inc. (AGU)
Barrick Gold Corp. (ABX)
* Brookfield Asset Management Inc. (BAM.A)
Brookfield Infrastructure Partners LP (BIP.UN)
* Brookfield Property Partners (BPY.UN)
Brookfield Renewable Energy Partners LP (BEP.UN)
Constellation Software Inc. (CSU)
Dorel Industries Inc (DII.A, DII.B)
* Encana Corp. (ECA)
Goldcorp Inc. (G)
IAMGOLD Corp. (IMG)
Inmet Mining Corp. (IMN)
Intertape Polymer (ITP)
Kinross Gold Corp. (K)
Magna International Inc. (MG)
Methanex Corp. (MX)
Open Text Corp. (OTC)
Potash Corp. of Saskatchewan (POT)
Silver Wheaton Corp. (SLW)
Talisman Energy Inc. (TLM)
Thomson Reuters Corp. (TRI)
WaterFurnace Renewable Energy Inc. (WFI)
Yamana Gold Inc. (YRI)

* Dividends are converted to $Cdn if the shareholder is a Canadian resident.

Canadian Preferred Shares Paying Dividend in $US
AltaGas ALA.PR.U
Enbridge ENB.PR.U, ENB.PF.U, ENB.PR.V, ENB.PF.V

Update: Added Dorel Industries to the list
Last edited by Arby on 22 Dec 2014 19:11, edited 1 time in total.

BRIAN5000
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Re: Canadian Stocks Paying $US Dividends

Post by BRIAN5000 » 22 Dec 2014 15:05

In my case are not shares held in street name in TDW brokerage account for ECA and AGU in a US account? Would that mean no double conversion? If it got paid out in Canadian into my US account TDW would have to show a conversion from Canadian to US in my account, haven't seen one.

Dorel inside a TFSA converting from US to Canadian TDi shows a transaction.

04-Dec-2014
DOREL INDS INC-B-SV
CONVERT TO CAD @ 1.12050

Just checked my US account for Sept and it shows Encana paying a dividend and no conversion by TDi
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little bit longer and wish you would’ve sold early - this is just part of the game.” - Frank Zorilla via Abnormal Returns

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Re: Canadian Stocks Paying $US Dividends

Post by ockham » 22 Dec 2014 15:45

Arby, thx for the list, and the commentary accompanying it. How did you compile the list?? First hand experience?? Grunt work??

A security missing from your list is Molson Coors (TPX.B). Its div is paid in US$$. If held on the Cdn side, the div is converted (I believe by Molson) to CDN$$. I don't know what happens if held on the US side, i.e., whether it would appear on your list with an asterisk or without.

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Re: Canadian Stocks Paying $US Dividends

Post by Arby » 22 Dec 2014 16:40

BRIAN5000 wrote:In my case are not shares held in street name in TDW brokerage account for ECA and AGU in a US account? Would that mean no double conversion? If it got paid out in Canadian into my US account TDW would have to show a conversion from Canadian to US in my account, haven't seen one.

Dorel inside a TFSA converting from US to Canadian TDi shows a transaction.

04-Dec-2014
DOREL INDS INC-B-SV
CONVERT TO CAD @ 1.12050

Just checked my US account for Sept and it shows Encana paying a dividend and no conversion by TDi
It's my understanding that all shares held at discount brokers are always in street name (a.k.a Beneficial shareholders). My info on ECA came from their website which says "Beneficial" Shareholders ....whose shares are held via a broker or investment dealer ...shall be converted into and paid in Canadian funds at the rate quoted for Canadian funds by the Bank of Canada at noon on the Record Date." I don't own ECA, so I don't have first hand experience. I'd be interested to know if you received exactly US$0.07 per share from ECA, or if the amount was slightly different.

My comment about double conversion for the asterisked companies came from a broker's rep.
ockham wrote:Arby, thx for the list, and the commentary accompanying it. How did you compile the list?? First hand experience?? Grunt work??

A security missing from your list is Molson Coors (TPX.B). Its div is paid in US$$. If held on the Cdn side, the div is converted (I believe by Molson) to CDN$$. I don't know what happens if held on the US side, i.e., whether it would appear on your list with an asterisk or without.
I copied most of the list from a post on Canadian Capitalist website, and then I updated and corrected the list based on my grunt work. I own 6 of the stocks in that list.

I looked at Molson Coors, but according to their website, their TSX-listed shares pay their dividend in $Cdn
"Molson Coors Brewing Company (NYSE: TAP) today declared a regular quarterly dividend on its Class A and Class B common shares of US$0.37 per share, payable December 15, 2014, to shareholders of record on November 26, 2014. The quarterly dividend is payable to holders of Class A and Class B common stock of Molson Coors Brewing Company. In addition, Molson Coors Canada Inc. (TSX: TPX.B, TPX.A), declared a quarterly dividend of approximately CDN$0.42 (the Canadian dollar equivalent of the dividend declared on Molson Coors stock)"

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Re: Canadian Stocks Paying $US Dividends

Post by BRIAN5000 » 22 Dec 2014 16:48

I only own ECA and not AGU they paid exactly .07 per share maybe someone can check AGU.

I think you can add Dorel to your list as well.
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little bit longer and wish you would’ve sold early - this is just part of the game.” - Frank Zorilla via Abnormal Returns

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Re: Canadian Stocks Paying $US Dividends

Post by Arby » 22 Dec 2014 17:09

BRIAN5000 wrote:I only own ECA and not AGU they paid exactly .07 per share maybe someone can check AGU.

I think you can add Dorel to your list as well.
Thanks for the update on ECA. Maybe I misunderstood the quote from ECA's website, but it seems to imply that the divi will be converted to $Cdn.

I missed Dorel - it should be added to the list. Thanks.

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Re: Canadian Stocks Paying $US Dividends

Post by ockham » 22 Dec 2014 17:31

Thx for the clarification on TPX.B. So its div is paid as the CDN$ equivalent of a US$ prescribed amount. No point, then, in using it to try to reap divs in US$$.

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Re: Canadian Stocks Paying $US Dividends

Post by DavidR » 22 Dec 2014 17:49

ECA is listed on US stock exchange as well as in Canada.
Perhaps Brian is holding the ECA shares in his US subaccount?

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Re: Canadian Stocks Paying $US Dividends

Post by BRIAN5000 » 22 Dec 2014 18:10

DavidR wrote:ECA is listed on US stock exchange as well as in Canada.
Perhaps Brian is holding the ECA shares in his US subaccount?
Yes I am, well it's not a sub account straight US non registered at TDi but that's not what Eca's website is saying. If I understand what Arby found is that If I'm Canadian, and I am, they should pay me in Canadian no matter what account I hold ECA in.
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Re: Canadian Stocks Paying $US Dividends

Post by IdOp » 22 Dec 2014 19:07

Interesting topic, thanks Arby. Just wanted to add that if a company converts the currency at a pre-determined rate set by BoC then I would not worry about it re cost. I would only worry about cost if the broker converts it due to the account it's in. (Of course, a company-converted dividend may not be in the currency you want.)

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Re: Canadian Stocks Paying $US Dividends

Post by Arby » 22 Dec 2014 19:25

IdOp wrote:Of course, a company-converted dividend may not be in the currency you want.
That's the issue for me. I want an ongoing income stream in US dollars to fund my annual snowbird expenses. That's the reason I like Canadian companies that pay their dividend in $US dollars. I can always get a $US income stream by buying US dividend stocks, but US dividend stocks don't benefit from the Canadian dividend tax credit.

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Re: Canadian Stocks Paying $US Dividends

Post by Peculiar_Investor » 23 Dec 2014 05:35

Back at the beginning of the month I undertook and posted some of the same work. Currently travelling for the holidays, but will use this topic to make further changes as required. Check out Dividend cycles - finiki, the Canadian financial wiki
Imagefiniki, the Canadian financial wiki New editors wanted and welcomed, please help collaborate and improve the wiki.

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Re: Canadian Stocks Paying $US Dividends

Post by OnlyMyOpinion » 23 Dec 2014 08:37

I apologize in advance for a dumb question: We have a 'US Cash' side to our TDW Direct Investing account that we've never needed or used (visible online, 0 balance) because everything is in our Cdn Cash account. If we used that account and held Cdn stocks paying US$, or US stocks listed on US market, our dividends would be paid into it in US$.
But to withdraw some of that US$ cash, I assume we would have to have a US$ banking account to transfer funds into? I don't believe I could walk into a TD Canada Trust bank branch or a TD Direct Investor Centre and withdraw cash from our US$ trading account (or from our Cdn$ account for that matter)? We've always deposited/withdrawn via our chequing acc. Thanks for any insight.

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Re: Canadian Stocks Paying $US Dividends

Post by adrian2 » 23 Dec 2014 08:46

OnlyMyOpinion wrote:But to withdraw some of that US$ cash, I assume we would have to have a US$ banking account to transfer funds into? I don't believe I could walk into a TD Canada Trust bank branch or a TD Direct Investor Centre and withdraw cash from our US$ trading account (or from our Cdn$ account for that matter)?
I have a no monthly fee US$ Daily Interest Chequing Account with TD ($1 per withdrawal). When I need US$ cash, I transfer online cash from the US$ TDW sub-account to the US$ TD chequing account (no fee) and I go to any branch requesting US cash from the teller ($1 fee appears on the statement).
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Re: Canadian Stocks Paying $US Dividends

Post by SQRT » 23 Dec 2014 09:03

Thanks for the list, Arby. It would indeed be convenient for me to have a stream of USD to fund our snowbird expenses. There are 2-3 names on the list I might consider. Would buy the shares with CDN $ then journal them to USD account to receive the divs I guess.

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Re: Canadian Stocks Paying $US Dividends

Post by BRIAN5000 » 23 Dec 2014 10:36

We have a 'US Cash' side to our TDW Direct Investing account that we've never needed or used (visible online, 0 balance) because everything is in our Cdn Cash account. If we used that account and held Cdn stocks paying US$...............,our dividends would be paid into it in US$.
Yes but TDi will immediately convert to the currency of the account see Dorel example above. If you want US dividends to stay in US dollars you need to hold Canadian or US stocks in a US account.

To get Canadian money from TDW I need to phone and ask them to PFT to my Canadian BNS account. (no TD Che/savings accounts) They needed a void check on file. To get US money I need to phone and get them to send a check. Not great but ok for now.
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little bit longer and wish you would’ve sold early - this is just part of the game.” - Frank Zorilla via Abnormal Returns

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Re: Canadian Stocks Paying $US Dividends

Post by OnlyMyOpinion » 23 Dec 2014 11:27

adrian2 wrote:
OnlyMyOpinion wrote:But to withdraw some of that US$ cash, I assume we would have to have a US$ banking account to transfer funds into? I don't believe I could walk into a TD Canada Trust bank branch or a TD Direct Investor Centre and withdraw cash from our US$ trading account (or from our Cdn$ account for that matter)?
I have a no monthly fee US$ Daily Interest Chequing Account with TD ($1 per withdrawal). When I need US$ cash, I transfer online cash from the US$ TDW sub-account to the US$ TD chequing account (no fee) and I go to any branch requesting US cash from the teller ($1 fee appears on the statement).
Thanks for the reply. Sounds like a TD US acc is the cleanest solution for us.

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Re: Canadian Stocks Paying $US Dividends

Post by pmj » 23 Dec 2014 12:17

Are TD US$ chequing accounts accessible from US ATMs - either via a regular Green card, or via some other method?
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Re: Canadian Stocks Paying $US Dividends

Post by adrian2 » 23 Dec 2014 12:45

pmj wrote:Are TD US$ chequing accounts accessible from US ATMs - either via a regular Green card, or via some other method?
Are you asking about ATM's located in the USA, or Canadian based ATM's dispensing US$?
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Re: Canadian Stocks Paying $US Dividends

Post by Arby » 23 Dec 2014 13:10

pmj wrote:Are TD US$ chequing accounts accessible from US ATMs - either via a regular Green card, or via some other method?
To clarify, there is a Canadian-based US$ chequing account from TD Canada Trust, and also a US-based chequing account from TD Bank in the USA. I assume you're asking about the Canadian-based TD Canada Trust US$ chequing account. The answer is yes, according to the cross border banking FAQs here.
Q: Can I access my TD Canada Trust account from a TD Bank location in the U.S.?
A: You can withdraw funds from your TD Canada Trust account through any TD Bank ATM.
I would call the TD cross border number to verify, and also ask them about any transaction fees if you're using a Canadian Access Card in a US ATM.

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Re: Canadian Stocks Paying $US Dividends

Post by pmj » 23 Dec 2014 17:50

Arby wrote:To clarify, there is a Canadian-based US$ chequing account from TD Canada Trust, and also a US-based chequing account from TD Bank in the USA. I assume you're asking about the Canadian-based TD Canada Trust US$ chequing account. The answer is yes, according to the cross border banking FAQs here.
Q: Can I access my TD Canada Trust account from a TD Bank location in the U.S.?
A: You can withdraw funds from your TD Canada Trust account through any TD Bank ATM.
My question was more general - to determine whether there is access to any kind of ATM throughout the US from a Canadian-based US$ account. I thought that TD only has limited geographic coverage - which appears to be true: www.tdbank.com/net/absearch/
You can bank with us at nearly 1,300 locations along the east coast.
... So for a TD US$ account to be "useful" elsewhere - eg an alternative to cash from an Amazon VISA - it would need more than access to just TD ATMs - which the quoted FAQ doesn't address.
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Re: Canadian Stocks Paying $US Dividends

Post by SQRT » 24 Dec 2014 03:34

pmj wrote:Are TD US$ chequing accounts accessible from US ATMs - either via a regular Green card, or via some other method?
Yes, I have a US based checking account at TD USA which I can access at ATM's anywhere in U.S. (Although there are fees if I use a non TD ATM). I also have Canadian based USD accounts which I use to funnel the proceeds of Gambits to this US based account. I have to be careful when I insert my access card into an ATM that I use the right one. If I screw up there are big FX fees to pay
The advantage of having a U.S. based account relate to paying bills, writing checks more than getting US cash out of ATM's

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Re: Canadian Stocks Paying $US Dividends

Post by BRIAN5000 » 30 Dec 2014 13:20

There is also two other Reits but a bit to small

WPT INDUSTRIAL REIT USD (WIR-U.TO) -Toronto
SLATE RETAIL REIT USD (SRT-U.TO) -Toronto
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Re: Canadian Stocks Paying $US Dividends

Post by Springbok » 30 Dec 2014 15:04

pmj wrote: So for a TD US$ account to be "useful" elsewhere - eg an alternative to cash from an Amazon VISA - it would need more than access to just TD ATMs - which the quoted FAQ doesn't address.
My wife & I have just been discussing this subject.
We have the Amazon Chase Visa which is useful for purchasing in USA without fees. But exchange rate will be whatever it is.
Thinking that for major expenses, we should deposit US$ into our BMO US$ account now and lock in the ~1.16 rate. We would sell stock on US side for this. We can write cheques on BMO US$ account. But not sure we could cash them!
Drawing cash is always a problem.
If we deposit cash into Amazon Chase Visa, there is a 1% fee for cash withdrawal.
If we use BMO US$ M/C , we can get cash from some ATMs or by going into bank. But there are fees.
Solution would be to open a BMO Harris bank account, but they have none in area we visit.
Could do same with PNC bank who are associated with RBC, but then we run into problems of transferring between BMO and RBC!

Plan is to deposit good sum of US$ in US$ account for use in writing cheques for rental and for paying US$ M/C bills (fx locked in)
We will watch FX rates and use Amazon card when favourable. The 1% cash back rewards should be considered.
For cash we will have to pay whatever the fee is. But will take enough with us so as to limit withdrawals.
One other source of cash may be Walmart. I am sure they always asked if we wanted cash back. Not sure if there are any fees or if it required debit card.
Last edited by Springbok on 30 Dec 2014 19:00, edited 1 time in total.

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Re: Canadian Stocks Paying $US Dividends

Post by DenisD » 30 Dec 2014 15:28

IIRC, the cash withdrawal fee is 1%, minimum $5.

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