Get U.S. dollars from Canadian dividend paying stocks
You can get U.S. dollar income from owning Canadian stocks.
It’s true – no currency exchanges to worry about. No commissions paid to your broker. U.S. cash, into your account, via Canadian stocks. I know this is possible. I do this.
Canada has a number of stocks that declare and pay out their dividends in U.S. dollars. For all the reasons they do that, you’d have to talk to their Board of Directors. One reason I can think of is because when most of the company revenues are in U.S. $$, it makes sense to pay out dividends from the company’s cash flows based on those revenues.
When it comes to whether the Canadian company would pay out dividends in Canadian or U.S. funds, or even still, when that dividend is converted on your behalf into Canadian dollars by your brokerage (who may or may not be taking a cut on the foreign exchange to do that) – you’re best to speak directly to the company’s investor relations team and your brokerage.
In many cases with my list below, dividends paid in U.S. dollars by Canadian companies are eligible for the dividend tax credit – for taxable investing. This might be important to you because the tax rate on dividends that qualify for the enhanced dividend tax credit will be lower than the tax rate on your regular income. You can read about my Dividend Tax Credit 101 article here.
By owning some Canadian stocks that pay dividends in U.S. dollars, I can “journal” shares back and forth between the U.S. and Canadian portions of my investing accounts as I wish. Basically, it’s an easy way to get U.S. dollar income: buy stocks on the Canadian-side and journal them to the U.S.-side.
Holding Canadian stocks that pay U.S. dollar dividends, in a taxable account after your RRSP is full, is also a good way to generate ongoing U.S. income for any foreign travel, especially any “snowbirding”. Taking your dividends in U.S. dollars gives you more control over your cash.
Even if you don’t want to withdraw/take any U.S. dividends in cash for spending purposes, you can let those U.S. dollars accumulate. Saved up U.S. dollars can be used to invest in more U.S. stocks or ETFs.
You can also build up the U.S. cash and then convert it to Canadian dollars when the CDN-U.S. exchange rate might become more favourable.
There could be the odd discrepancy of course (I hope to avoid those on this site whenever possible(!)), but with a big thanks to “agent99” on Canadian Money Forum, input from others, along with my own research, here is a list of Canadian dividend stocks that pay U.S. dollar dividends.
|Agnico Eagle Mines Ltd.||AEM||AEM:US||Quarterly|
|Alamos Gold Inc.||AGI||AGI:US||Semi-Annual|
|Algonquin Power & Utilities Corp.||AQN||AQN:US||Quarterly|
|American Hotel Income Properties REIT LP||HOT.UN||Monthly|
|Barrick Gold Corp.||ABX||ABX:US||Quarterly|
|Brookfield Asset Management Inc.||BAM.A||BAM:US||Quarterly|
|Brookfield Business Partners LP||BBU.UN||BBU:US||Quarterly|
|Brookfield Renewable Partners LP||BEP.UN||BEP:US||Quarterly|
|Brookfield Infrastructure Partners LP||BIP.UN||BIP:US||Quarterly|
|Brookfield Property Partners LP||BPY.UN||BPY:US||Quarterly|
|Colliers International Group Inc.||CIGI-T||CIGI:US||Semi-Annual|
|Constellation Software Inc.||CSU||Quarterly|
|Dorel Industries Inc.||DII.B||DIIBF:US||Quarterly|
|Fairfax Financial Holdings Ltd.||FFH||FRFHF:US||Annual|
|Gildan Activewear Inc.||GIL||GIL:US||Quarterly|
|Intertape Polymer Group Inc.||ITP||ITPOF:US||Quarterly|
|Magna International Inc.||MG||MGA:US||Quarterly|
|Nevsun Resources Ltd.||NSU||NSU:US||Quarterly|
|Nutrien (POT and AGU merger 2018)||NTR||NTR:US||Quarterly|
|Open Text Corp.||OTEX||OTEX:US||Quarterly|
|Pan American Silver Corp.||PAAS||PAAS:US||Quarterly|
|Polaris Infrastructure Inc.||PIF||PII:US||Quarterly|
|Restaurant Brands International Inc.||QSR||QSR:US||Quarterly|
|Ritchie Bros Activewear Inc.||RBA||RBA:US||Quarterly|
|Tahoe Resources Inc.||THO||TAHO:US||Monthly|
|Thomson Reuters Corp.||TRI||TRI:US||Quarterly|
|Waste Connections Inc.||WCN||WCN:US||Quarterly|
|Wheaton Precious Metals||WPM||WPM:US||Quarterly|
|Yamana Gold Inc.||YRI||AUY:US||Quarterly|
Disclosure: I own some of these companies above. Regardless, these are not recommendations for purchase. Before making any major investment decision all investors are advised to complete their own due diligence, ensuring decisions are aligned to their goals and risk tolerance.
Notes: Dividend information above is based on third-party research and my own. For some companies above (e.g., Tahoe) there may have been recent declaration changes; payments of dividends can change at any time at the discretion of the company. Any discrepancies in the information above are appreciated via comments and sources for your data; to keep this post current and accurate for all. Thanks!