Q: I am hoping you can shed some light on the best way to receive dividends from Brookfield. I have used BAM in my example but I think all their companies work the same way.
The dividends are paid in US dollars. As a Canadian resident but holding the shares on a US exchange, it seems that I will be paid first in Canadian dollars and then the dividends will be converted to $US. That is unless I write my broker and ask for the dividends in US dollars directly. However, if I hold the shares on the TSX, the dividend will still be paid in US dollars and then converted unless I ask the company to pay me in Canadian dollars!
What is not clear is if there are any conversion fees attached to any of these options. What is the best/cheapest /easiest way to receive Brookfield dividends? Can it be done without having to contact either my brokerage or the company?
I tried to ask the company but their response was quite unclear.
Appreciate your insight.
Paul F.
The dividends are paid in US dollars. As a Canadian resident but holding the shares on a US exchange, it seems that I will be paid first in Canadian dollars and then the dividends will be converted to $US. That is unless I write my broker and ask for the dividends in US dollars directly. However, if I hold the shares on the TSX, the dividend will still be paid in US dollars and then converted unless I ask the company to pay me in Canadian dollars!
What is not clear is if there are any conversion fees attached to any of these options. What is the best/cheapest /easiest way to receive Brookfield dividends? Can it be done without having to contact either my brokerage or the company?
I tried to ask the company but their response was quite unclear.
Appreciate your insight.
Paul F.
5i Research Answer:
Typically, when a company pays in US dollars and the stock is held in a US account, there are no fees. However, with some companies and some brokers, conversion is done automatically anyway, unless one notifies the broker. Anytime there is a conversion there will be an embedded fee. This generally comes from the fact that the broker gets a better f/x exchange rate than the one they use for the client's conversion. The only way we know around this is to contact the broker and have US dividends kept in US dollars in a US account.