# BP Dividend hike



## Kaitlyn (May 13, 2011)

http://www.newser.com/article/da27r...rofits-swell-russian-deal-brings-in-cash.html

BP is hiking their dividend 12.5% to 9 cents, but there is the ADR on the NYSE which is $0.48. Does this mean that is also increasing 12.5%, to $0.54?


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## blin10 (Jun 27, 2011)

yes


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## Toronto.gal (Jan 8, 2010)

*Kaitlyn:* you can find a lot of the answers you ask here & much quicker, by simply visiting the company's website. 

'BP today announced a quarterly dividend of 9 cents per ordinary share *($0.54 per ADS)*, which is expected to be paid on 21 December 2012.' 
http://www.bp.com/extendedgenericarticle.do?categoryId=2012968&contentId=7078509

Our patience has been rewarded! :encouragement:


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## Kaitlyn (May 13, 2011)

Toronto.gal said:


> *Kaitlyn:* you can find a lot of the answers you ask here & much quicker, by simply visiting the company's website.
> 
> 'BP today announced a quarterly dividend of 9 cents per ordinary share *($0.54 per ADS)*, which is expected to be paid on 21 December 2012.'
> http://www.bp.com/extendedgenericarticle.do?categoryId=2012968&contentId=7078509
> ...


Ah... I was doing tons of searches but everything was talking about the LON ticker.

Thanks!

I only hold 200 shares, sadly (all I could afford at the time) but I'm up 34% plus the rising dividends


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## My Own Advisor (Sep 24, 2012)

@Kaitlyn,

Nice work!

Where do folks hold this stock, in RRSP I assume? Curious since there are tax implications for ADR stocks.


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## Kaitlyn (May 13, 2011)

My Own Advisor said:


> @Kaitlyn,
> 
> Nice work!
> 
> Where do folks hold this stock, in RRSP I assume? Curious since there are tax implications for ADR stocks.


I hold it in my non-registered USD account. What are the tax implications of ADR?


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## My Own Advisor (Sep 24, 2012)

4) I received the November statement of my RRSP account with BMO InvestorLine and was surprised to find that non-resident tax at 19 per cent was withheld from dividends paid on my shares of Spanish-based Telefonica SA-sponsored American depositary receipts. My questions are: 1) Whether sponsored ADRs on the New York Stock Exchange are covered under the tax treaty between the United States and Canada; 2) If yes, is there anything that I could do with BMO InvestorLine for some remedy; and 3) If not, what is the withholding tax rate on dividends?

The Canada-U.S. tax treaty provides an exemption from the U.S. withholding tax on U.S.-source dividends and interest held within a Canadian RRSP or registered retirement income fund. However, other foreign security distributions are not subject to this Canada-U.S. treaty exemption, regardless of whether the investment is in U.S.-denominated ADRs or in ordinary securities. The withholding tax on other foreign securities is withheld at source at the full rate of the issuing country. There is no facility in the Canadian securities industry for the beneficial owners of other (that is, non-U.S.) foreign securities to receive the benefit of any tax treaty between Canada and the issuing country. The only recovery option is to apply directly to the issuing government tax authority for any potential refund due to the provisions of the relevant tax treaty, if any.

Reference:
http://www.theglobeandmail.com/glob...-beget-oodles-of-tax-questions/article536089/

More reading...thanks to this forum 
http://canadianmoneyforum.com/showthread.php/5866-Best-Place-to-hold-ADRs


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## PMREdmonton (Apr 6, 2009)

This issue has come up before. The US and UK seem to have an agreement in place that results in no withholding taxes on US ADRs. Then the US government also does not tax the proceeds of ADRs directly for Canadians. 

So, if you buy a UK stock ADR in RRSP there is no withholding taxes. If you buy a UK stock ADR in TFSA there is no withholding tax. If you buy a UK stock ADR in a non-registered account there is no withholding tax and you will only pay Canadian income tax on the dividend.

Spain does not have such a treat with the US. So there is a withholding tax on the ADR that is collected in Spain before being distributed. Now for the Spain companies, some will let you take the dividend in an equivalent number of shares and then you can avoid the withholding tax. If you want money instead you sell the extra shares you got back and you basically have your dividend without a withholding tax. I know this worked for me with Santander and Telefonica. However, TEF has suspended their dividend until debt is under better control. I still worry about how much bad property Santander might have so sold out for about a 15% gain in the summer.


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## liquidfinance (Jan 28, 2011)

For thos wondering how the UK Tax system works for dividend income take a look at the following link. 

http://www.hmrc.gov.uk/taxon/uk.htm#4

But what intrigues me is if you can use this information and gross up your dividend when completing your tax return.


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