$EURN People keep moaning about the 30% Belgian tax. Guys USA taxes non-us share holders on dividends too. I get taxed 37% on mlps like $ET, $EPD etc. I think a lot of you guys are spoilt. I live in the UK, I also get 30% taxed on EURN dividends. We get taxed left right and centre.
@Jabba_Hutt @Sandobando @jasear $9 stock with $1 dividend drops by $1 on the ex-dividend date. With 30% withholding tax, you only receive $0.70 but the stock price is now $8. You could've have sold at $9 then buy back at $8 and avoid the dividend withholding tax completely. You have a margin of safety buying back from $8 to $8.30 and still be better off than if you had not sold if they stock didn't drop so much.
@washingpole @Sandobando @jasear if market were perfect, that rationale would be great. May 6 was ex-div and look how price action worked. Closed May 6 at 7.56 and closed May 7 at 7.49. Dividend was 0.30. I would rather take a 15% p.a. dividend (10% p.a. net of withholding tax) instead of relying on a theoretical decline in share price that doesn’t always translate in real life.
2 Likes