Dividend Withholding Tax Rates By Country 2017

The Withholding Tax Rates for Foreign Stock Dividends for 2017 are shown in the table below. As some countries change the withholding tax rate every year this list can be a valuable tool for investors holding or planning to invest in foreign stocks. Since this tax can take a huge chunk of dividends sometimes it is important to review the tax impacts before going abroad. For example, among developed countries Switzerland charges one of the highest dividend withholding taxes for non-residents. Others such as Canada give favorable treatment to Americans by waving the tax if the investments (excluding REITs) are held in qualified retirement accounts such as 401Ks.

The Dividend Withholding Tax Rates by Country for 2017 :

Click to enlarge

Source: Deloitte

Download: Dividend Withholding Tax Rates By Country 2017 (in pdf format)


The World’s Top 100 Non-Financial TNCs Ranked by Foreign Assets 2015

The World’s Top 100 Non-Financial Trans-National Corporations (TNCs) ranked by Foreign Assets as of 2015 are listed in the table below:

RankCompanyCountryIndustryForeign Assets (in millions of dollars)Total Assets (in millions of dollars)
1Royal Dutch Shell plcUnited KingdomMining, quarrying and petroleum288 283340 157
2Toyota Motor CorporationJapanMotor Vehicles273 280422 176
3General Electric CoUnited StatesIndustrial and Commercial Machinery257 742492 692
4Total SAFrancePetroleum Refining and Related Industries236 719244 856
5BP plcUnited KingdomPetroleum Refining and Related Industries216 698261 832
6Exxon Mobil CorporationUnited StatesPetroleum Refining and Related Industries193 493336 758
7Chevron CorporationUnited StatesPetroleum Refining and Related Industries191 933266 103
8Volkswagen GroupGermanyMotor Vehicles181 826416 596
9Vodafone Group PlcUnited KingdomTelecommunications166 967192 310
10Apple Computer IncUnited StatesComputer Equipment143 652290 479
11Anheuser-Busch InBev NVBelgiumFood & beverages129 640134 635
12Softbank CorpJapanTelecommunications125 485184 325
13Honda Motor Co LtdJapanMotor Vehicles125 270162 268
14Enel SpAItalyElectricity, gas and water124 603175 806
15Daimler AGGermanyMotor Vehicles123 881236 874
16Eni SpAItalyPetroleum Refining and Related Industries118 319147 024
17CK Hutchison Holdings LimitedHong Kong, ChinaRetail Trade118 250133 280
18Glencore Xstrata PLCSwitzerlandMining, quarrying and petroleum114 941128 485
19Siemens AGGermanyIndustrial and Commercial Machinery113 020134 995
20Telefonica SASpainTelecommunications110 879134 134
21Nissan Motor Co LtdJapanMotor Vehicles109 475154 651
22Nestlé SASwitzerlandFood & beverages101 977124 590
23Deutsche Telekom AGGermanyTelecommunications100 140156 981
24Mitsubishi CorporationJapanWholesale Trade100 095132 777
25Allergan PLCIrelandPharmaceuticals99 535135 841
26BMW AGGermanyMotor Vehicles97 843187 799
27Johnson & JohnsonUnited StatesPharmaceuticals96 802133 411
28EDF SAFranceElectricity, gas and water94 538304 255
29Iberdrola SASpainElectricity, gas and water94 453114 163
30Rio Tinto PLCUnited KingdomMining, quarrying and petroleum91 20991 564
31Fiat Chrysler AutomobilesUnited KingdomMotor Vehicles90 275114 572
32EngieFranceElectricity, gas and water89 504175 238
33Microsoft CorporationUnited StatesComputer and Data Processing81 790176 223
34Pfizer IncUnited StatesPharmaceuticals81 431167 460
35Mitsui & Co LtdJapanMining, quarrying and petroleum81 26597 120
36E.ON AGGermanyElectricity, gas and water74 746124 011
37ArcelorMittalLuxembourgMetals and metal products74 16176 846
38SanofiFrancePharmaceuticals72 545111 607
39China National Offshore Oil CorpChinaMining, quarrying and petroleum71 090182 282
40Ford Motor CompanyUnited StatesMotor Vehicles68 366224 925
41Altice NVNetherlandsTelecommunications68 35470 678
42Airbus Group NVFranceAircraft68 234116 362
43Novartis AGSwitzerlandPharmaceuticals67 533131 556
44Procter & Gamble CoUnited StatesChemicals and Allied Products64 498129 495
45Hon Hai Precision IndustriesTaiwan Province of ChinaElectronic components64 04070 244
46Roche GroupSwitzerlandPharmaceuticals62 79176 128
47Samsung Electronics Co., Ltd.Korea, Republic ofCommunications equipment62 294205 860
48BHP Billiton Group LtdAustraliaMining, quarrying and petroleum62 274124 580
49GlaxoSmithKline PLCUnited KingdomPharmaceuticals62 00479 285
50Statoil ASANorwayPetroleum Refining and Related Industries61 854109 596
51International Business Machines CorporationUnited StatesComputer and Data Processing60 069110 495
52Lafargeholcim LtdSwitzerlandStone, Clay, Glass, and Concrete Products59 44479 950
53Wal-Mart Stores IncUnited StatesRetail Trade58 309199 581
54Orange SAFranceTelecommunications56 58999 727
55ConocoPhillipsUnited StatesPetroleum Refining and Related Industries55 52397 484
56BASF SEGermanyChemicals and Allied Products55 11577 264
57General Motors CoUnited StatesMotor Vehicles52 490194 520
58Mondelez International, Inc.United StatesFood & beverages51 75362 843
59BG Group plcUnited KingdomMining, quarrying and petroleum51 71059 676
60Marubeni CorporationJapanWholesale Trade50 38163 358
61Robert Bosch GmbHGermanyMotor Vehicles50 30884 278
62Repsol YPF SASpainPetroleum Refining and Related Industries50 23168801
63Anglo American plcUnited KingdomMining, quarrying and petroleum50 05952 013
64Unilever PLCUnited KingdomFood & beverages49 50157 044
65Sony CorporationJapanElectric equipment48 942148 418
66Christian Dior SAFranceTextiles, clothing and leather46 54367 170
67Petronas - Petroliam Nasional BhdMalaysiaMining, quarrying and petroleum45 572153 770
68Imperial Brands PLCUnited KingdomTobacco45 45545 713
69AstraZeneca PLCUnited KingdomPharmaceuticals45 41260 124
70China Ocean Shipping (Group) CompanyChinaTransport and storage44 80557 875
71Sumitomo CorporationJapanWholesale Trade44 25169 590
72Bayer AGGermanyPharmaceuticals44 17280 625
73RWE AGGermanyElectricity, gas and water43 60286 534
74Schlumberger LtdUnited StatesMining, quarrying and petroleum43 47568 005
75Schneider Electric SAFranceElectricity, gas and water43 24146 441
76SABMiller PLCUnited KingdomFood & beverages43 19543 589
77Liberty Global plcUnited KingdomTelecommunications41 78564 610
78SAP SEGermanyComputer and Data Processing41 52245 146
79Hewlett-Packard CoUnited StatesComputer and Data Processing41 39181 270
80ITOCHU CorporationJapanWholesale Trade41 27371 536
81British American Tobacco PLCUnited KingdomTobacco40 86846 751
82United Technologies CorporationUnited StatesAircraft39 92587 484
83Heineken NVNetherlandsFood & beverages39 91141 137
84National Grid PLCUnited KingdomElectricity, gas and water39 24084 761
85Oracle CorporationUnited StatesComputer and Data Processing38 520110 903
86Amgen IncUnited StatesPharmaceuticals38 39271 576
87AP Moller - Maersk A/SDenmarkTransport and storage37 92462 408
88Renault SAFranceMotor Vehicles37 76598 827
89WPP PLCUnited KingdomBusiness Services37 16942 648
90Linde AGGermanyChemicals and Allied Products36 76238 555
91Diageo PLCUnited KingdomFood & beverages36 68640 585
92Teva Pharmaceutical Industries LimitedIsraelPharmaceuticals36 35754 258
93Vattenfall ABSwedenElectricity, gas and water36 11358 969
94Volvo ABSwedenMotor Vehicles36 10544 445
95América Móvil SAB de CVMexicoTelecommunications35 79074 624
96Fresenius SE & Co KGaAGermanyHealth care services35 38747 324
97Caterpillar IncUnited StatesIndustrial and Commercial Machinery35 36078 497
98Vale SABrazilMining, quarrying and petroleum35 33887 251
99Hitachi LtdJapanComputer Equipment35 140111 723
100Alphabet IncUnited StatesComputer and Data Processing35 128147461

Source: UNCTAD

A few observations:

  • Oil and auto firms dominate the top 10 this ranking based on foreign assets with Royal Dutch Shell (RDS-A, RDS-B) taking the first spot.
  • Apple(AAPL) which is ranked number 10, had more than half of its total employees in foreign countries.
  • Some of the firms outside of developed Europe and the US include drug maker Teva(TEVA) of Israel, oil giant Petronas of Malaysia, Vale(VALE) of Brazil, etc.
  • Many of the firms in this list are world-class leaders in their respective industries. For example, BASF SE(BASFY) is the world’s top chemical company and US-based Johnson & Johnson (JNJ) is one of the world’s best pharma companies.
  • Though Alphabet(GOOG) is the last in the ranking, it shows the scale of worldwide presence and foreign assets of Google.
  • From a long-term investment perspective, firms like Nestle(NSRGY), National Grid (NGG), Novartis(NVS), Imperial Brands (ITYBY), etc. are excellent picks.

 Download List:

  1. The World’s Top 100 Non-Financial Trans-National Corporations (TNCs) by foreign assets as of 2015 (in Excel format)

See also:

Disclosure: No Positons

FTSE Italy Index – Revenue by Geographic Region

Many of the large-cap Italian firms in some sectors generate a large portion of their revenues from markets abroad. This is similar to the UK market where the FTSE 100 firms are dependent on foreign countries than the local market. So Italian multi-nationals may offer opportunities for investors when politics and other issues lead to short-term decline in stock prices.

The following chart shows the revenue of FTSE Italy index firms’ revenue by geographic regions:

Click to enlarge

Source: Where next for the value rally in Europe?, Schroders

According to the above chart only 39% of revenues come from Italy for FTSE Italy Index companies.

While sectors such as banking are most exposed to the domestic market, investors can focus on sectors such oil, luxury goods markers, etc. who are more impacted by the state of the foreign countries than the local economy.

For a list of Italian ADRs trading on the US markets go here.


How Much Has Apple Stock Grown Since March 2009 ?

Last week marked  the 8th anniversary of the bull market that began in 2009 at the peak of the Global Financial Crisis. Since then the SS&P has soared by more than 260% with an annual average return of about 18% with dividends reinvested.

Apple(AAPL) stock has had a fantastic run that beat even the S&P 500’s 260%. Apple has surged more than 1,080 percent from early 2009 thru now.

Click to enlarge

Source: U.S. Global Investors

By any measure this is an extraordinary growth. However the question now is: Can this type of growth occur in the future? Or was this a one-time wonder that may or may not happen moving forward.

Disclosure: No Positions

How To Obtain Real Diversification Benefits With Equities?

Diversification means holding various asset classes such as stocks, bonds, gold, cash, etc. across various geographical regions like developed, emerging, frontier markets. One cannot try to gain from diversification by simply owing an index fund or holding a bunch of stocks of the same asset class or type. For instance, owing a large-cap index fund or a portfolio of only large cap stocks is not the right way to diversify a portfolio. Large-cap stocks do not always perform better and earn a higher return than mid and cap stocks. So in order to diversify one’s portfolio it is wise to hold assets of all these types for the equity portion. In a recent article Jason Hollands of Tilney Group, UK discussed one way to obtain real diversification using the example of the benchmark indices for the UK equity market.

An excerpt from the piece:

I am however a big believer in genuine diversification, whether that is across asset classes, geographic markets, companies of different sizes and stages of development and indeed investment styles. Over the long run, both small and mid-cap shares have beaten the FTSE 100, convincingly so in the case of mid caps.

When you deconstruct the FTSE All Share index, the breakdown between its exposure to large, medium-sized and smaller company constituents by number of individual companies is radically different to what you end up with once market-cap weighting is applied as the following tables shows.

Index No. of companies FTSE All Share constituents (%) FTSE All Share market cap (%) Five-year total return (%)
FTSE 100 101 15.9 80.4 +51
FTSE 250 250 39.4 16.0 +93
FTSE Small Cap 284 44.7 3.6 +104
FTSE All Share 635 100 100 +57

Now here is a quick back of a fag packet piece of analysis: imagine if you had invested across these three parts of the market (large, mid sized and small) over the last five years in proportion to the number of constituents rather than based on market capitalisation.

Well, instead of getting the 57 per cent return delivered by the market-cap weighted FTSE All Share Index over this period, you’d be looking at something more like a 91 per cent return!

Source: The dangers of thinking FTSE 100 shares are safe, Money Observer, Feb 22, 2017

Note: All the returns shown above are in local currency (GBP)

Three reasons why small and mid-caps beat large caps in the long run are:

Large companies are generally considered safer than their smaller peers. Hence smaller companies grow faster and their stocks perform well as more risk means more rewards.

Many large firms are market leaders in their areas and they have been around for a long time. So they tend to be behind in innovation and usually are a huge bureaucratic mess.

Small companies can react to market changes quickly and hence reap the benefits whereas large companies cannot adjust to market changes fast.

So the key takeaway is that investors should not avoid mid and small cap stocks since large stocks alone can seem to offer plenty of diversification. But to generate a higher return and to benefit from the process of diversification it is important to hold all of the asset classes.

Related ETF:

  • iShares MSCI United Kingdom ETF (EWU)
  • iShares FTSE 250 UCITS ETF (MIDD)
  • iShares MSCI United Kingdom Small-Cap ETF (EWUS)

Disclosure: No Positions


But see: Big Machine: Why Large Caps Are Likely to Outperform, Schwab