Q: Good morning, What are the pros and cons of purchasing a Canadian company such as Stantec in U.S.? If I purchase it on the NYSE on my portfofio analysis it it considered U.S. ?
5i Research Answer:
The domicile of a company does not change with a different listing. STN is a Canadian company and investors get the dividend tax credit regardless of where they trade the shares. There are not really big advantages/disadvantage. Arbitrage takes care of price and currency differences, and the C$ price will be similar to the US$ converted price. We are largely indifferent to which exchange if trading liquidity on both markets is sufficient, EXCEPT......when a Canadian company pays its dividend in US dollars we prefer to hold it in a US account so that one doesn't pay f/x conversion fees on every dividend. But STN pays in Canadian $$ so we would prefer it to be held in a Canadian account.