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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Ditchdigger who wrote (48121)	5/25/2012 10:07:30 AM
From: Spekulatius	2 Recommendations Read Replies (1) \| Respond to of 78744

Yes , the withholding tax is an disadvantage for foreign stocks, but even after withholding 25% of the German dividend, SI yield is 3.2% while GE is at 3.5%, not exactly a large dividend. If you hold SI in a taxable account, you get credit for the foreign taxes too. British stocks are interesting for dividend investors because there is no withholding tax for British companies and some pay very well. Also, if you really are interested in accumulating stock in one company, it's better buy stock in companies buying back there own shares from a tax perspective, since with dividends, you pay Uncle Sam 15% (+ state taxes) on your dividend, which is avoided if the company does not pay a dividend and directly invest the funds to buy back their own shares. This assumes reasonable asset allocation skills from management of course, which is not a given. but with companies like L or BRK, management are also large owners and buy their stock when it's cheap, while most companies buy back stocks while it is pricy, which makes the value of those buybacks very suspect for LT shareholders.

To: Ditchdigger who wrote (48121)	5/29/2012 9:57:37 AM
From: Spekulatius	1 Recommendation Read Replies (3) \| Respond to of 78744

LEY.PA @ 35.7Euro - i bought some shares of this European mid-cap industrial. This company manufactures components and systems for the railroad industry and is family controlled. They have a good track record but hit a earning pothole due to problems with the business in China, I assume it is due to railroad accidents there that temporarily (imo) stopped new rail investments. Faiveley's order book is very strong though, so I am hoping that this is a temporary setback. The stock has suffered quite a bit already and seems very cheap. investing.money.msn.com