Hi Anyone here know some convenient link to scan for listed companies paying stock dividends rather than cash dividends ? I´m interested in the US but also other markets btw, can´t say the list shows up through a quick google search, so would welcome directions. Thanks !
Maybe? https://www.directinvesting.com/search/no_fees_list.cfm https://www.firstshare.com/subpage-available-companies.aspx ***More company specific info on 2nd link.
Thanks Bum, but my understanding is DRIPs are taxable events, to the contrary of stock dividends I remember a scan for the UK market offering that selection but can´t find it anymore
Yes, DRIPs are taxable but what other program is available to receive shares in place of cash from dividends? DRIPs is the only program I'm aware of. Stock dividends are taxable unless it's a retirement account.
Oh...I´m a spanish tax resident and I read they are not taxable here but should double check with a tax lawyer. Looking up the situation in the US, the first info I found is the same a what you said (but not clear whether they mean dividends paid in extra stock or dividends paid from stock, which are most often cash) but than I also find the link below (second link i checked) https://www.hrblock.com/tax-center/income/investments/stock-dividends/ "You get a stock dividend when a company pays you a dividend with extra shares of stock instead of cash. You usually don’t need to include these dividends in your taxable income. When you receive a dividend, the total value (basis) of the stock doesn’t change. Instead, the basis of each share changes. Stock dividends usually don’t have tax implications until you sell the shares. So, the amount paid in cash for the fractional share is considered taxable income. Report the sale of fractional shares onForm 8949. To learn more, see the Fractional Shares tax tip." If they are taxable in the US and not in Spain, I´m wondering how this ends up, also as the tax on dividends is withheld, how would the broker apply the withholding ? Besides I´m looking for stock dividends in US, Europe and other markets as well
First link was from Investopedia, it seems they meant dividends paid in cash, as in another link Investopedia also states stock dividends are not taxable. Actually it is trickier as the dividend apparently becomes taxable if the investor is offered the choice between a cash and a stock dividend, which seems common for the few companies that propose stock dividends : https://www.investopedia.com/ask/answers/011215/if-i-reinvest-my-dividends-are-they-still-taxable.asp "Some companies do not pay dividends to their shareholders in the form of cash, but rather in the form of additional company shares. Stock dividends are generally not taxable until the stock is sold. This exemption is forfeited if the company allows the investor to choose between stock or cash dividends, in which case the investor is taxed even if he or she chooses stock dividends."
just to make the discussion clearer : Astock dividendis adividendpayment made in the form of additional shares rather than a cash payout. Stock Dividend Definition - Investopedia I own a whole bunch of stocks and only aery few of them offer stock dividends afaik, so it´s not very common. On Singapore exchange I got choice a couple of times between a cash dividend and a kind of improved Drip, with the possibly to repurchase shares at a discount, which is most likely a taxable event
I've done my own taxes on stock dividends for decades & have always paid dividend taxes in the year they were distributed but I've never used the DRIP program so not sure when taxes are paid. ***This is from a U.S. taxpayer perspective only.
Thanks Bum for your feedback, I´ll look into it further, it already appears to be more complicated than I first thought. Not a closed discussion though, any link pointing to list of companies that pay stock dividends will be welcome, basically in any market available through IB