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This is a very boring investment. But the value of shares I bought in 2009 tripled, in 2012 doubled. Here is a link to a very interesting article showing how they operate. I like it.
http://www.canadianbusiness.com/business-strategy/brookfield-asset-management-a-perfect-predator/
The dividend is small, this is true.

I also got some Brookfield Infrastructure Partners UN in my registered account. They also pay small dividend, split into several components: return of capital, interest, US interest, foreign dividend and US dividend.

On the other hand, thanks to owning exciting and large-dividend paying Yellow Pages I now have a capital loss I will carry well into the future. So boring is good.
 

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^^^
That does indeed appear to be the case;
although some here will likely not believe it! :untroubled:


as i mentioned upthread, FX fees on USD dividends from canadian companies are a complicated picture across hundreds of brokers, there are all kinds of micro-exceptions, brookfield itself is a special exception.

zylon should identify whether he is talking about a registered or non-registered account. Just this distinction makes a big difference. During the past 2 years there have been massive changes in broker practices regarding registered accounts. These have been encouraged, one might almost say enforced, by the IIROC, since brokers are acting as trustees for registered accounts & fiduciary duty binds them to fair dealing.

however, although brokers have cleaned up most of their registered account FX fees over the past 2 years, the same is not happening in non-registered accounts, where brokers have a lowered responsibility as trustees.

in addition, zylon should identify the broker involved with his account, particularly if it's a non-registered account, since individual broker practice may be part of the story, as i mentioned upthread.

if non-registered, we now travel into territory that splits hairs into nano-particles. I could write a book on the subject but it would be useless, this world is changing so fast that a book would be out of date in 6 months.

a feature of non-registered accounts is how each broker records settlement currencies. Some don't record at all. Settlement data may or may not have an effect on whether a broker charges FX fees; this depends upon each broker's profile.

furthermore, among the 21 canadian companies paying dividends in USD, brookfield is already an exception, also as i mentioned upthread.

in general, though, it's true today that brokers are charging FX fees on millions of USD dividends paid by 21 important canadian companies to hundreds of thousands of unsuspecting canadian investors who hold these stocks in canadian dollar investment accounts.

it's also true that the broker industry is being pushed by the IIROC - which in turn has been pushed by a few journalists exposing the damage & by a few investors who have complained - the broker industry is beginning to consider how to improve the situation(s) in the clients' favour.

anecdote suggests to me that scotia iTrade may be a leading broker in this regard. (Q1 to zylon, Is your broker scotia iTrade? this would explain the fair deal you're getting. Q2 to zylon, is your account, at any broker wheresoever, a registered account? this would also explain the fair deal.)

within a few years, there will likely be much greater transparency. The fact that more & more companies will be converting to USD dividends will help to push the broker industry towards full & fair disclosure. Although this will only happen if more & more investors inquire specifically about FX fees on their dividends.

(aside to advisor) please do not try to summarize an extraordinarily messy, fragmented & unwieldy situation into one or 2 overly-simplified generalities in order to write up some kind of snap rule. This is a giant issue that is only now being probed for the first time. In my view, it's fine for a cmf poster to help with the probing (zylon's expose) but it's misleading for any cmf poster to publish snap rules based on one non-typical fragment of information.
 

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Thinking to start a position in my RRSP, I knew that they pay dividends in USD, but just double-checked on their website - and apparently "Registered shareholders who are Canadian residents receive their dividends in the Cdn. dollar equivalent, unless they request to receive dividends in U.S. dollars."

I know the dividend is tiny, but still - a question if I may to those who hold the stock: do you receive dividends in CAD or USD? If the latter - did you have to request it (and how if yes)?

I'm with Questrade, a dual currency account.

Thank you in advance! :)
 

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Thinking to start a position in my RRSP, I knew that they pay dividends in USD, but just double-checked on their website - and apparently "Registered shareholders who are Canadian residents receive their dividends in the Cdn. dollar equivalent, unless they request to receive dividends in U.S. dollars."

I know the dividend is tiny, but still - a question if I may to those who hold the stock: do you receive dividends in CAD or USD? If the latter - did you have to request it (and how if yes)?

I'm with Questrade, a dual currency account

you'll note that the company is specifying "registered shareholders."

no company can control how brokers handle dividends for shares that are held in street. These days, nearly all shares are held at brokers in street form. Certainly RRSP shares in particular are always held by a broker as trustee, never by the beneficiary in registered form.

street holding means that brokers have most of the control over dividends, although investors who understand what's happening can intervene & request that a canadian company that pays its dividends in USD be held on US side of an account in order to prevent broker FX charges.

here's a nano-detail that moneyToo would be a good person to investigate (ie she's bright, accurate & reliable :peach:)

a year or 2 ago a friend set up an RRSP at questrade precisely so he could monitor what they're doing with USD dividends. In this account, he bought Potash as an experiment - POT is a canadian that pays a relatively high dividend in USD. After settlement, he asked questrade to journal the stock to USD side of the registered account, so he could receive POT dividends in USD with no FX fee.

what happened next was interesting. Keep in mind that the "settlement currency" was CAD, in this example. He'd paid in CAD. He found that questrade's system kept migrating his shares from the USD side of account, back to the CAD side. Each day that this happened, the questrade representatives would say they couldn't explain why. They'd journal the potash shares back to USD side, but then overnight the same migration back to CAD side would occur again.

i do know from experience that other broker systems are able to handle the "settlement currency" issue on a permanent basis. IE investor buys a canadian stock paying USD dividends on canadian market, investor pays in CAD, then investor journals stock to USD side & the stock will stick there permanently.

but the questrade mainframe, as is well-known, was custom-built upon an older model. My friend speculated to me that the undesirable migration of his potash shares back to their original settlement currency - despite his continued efforts to keep them on USD side - kept re-occurring because of a small glitch between the older questrade mainframe & the newer one that's presently being used.

i don't have any update on this year-old story. It's possible questrade has been able to cure the problem. It's possible that canadian stocks such as Brookfield can now be bought in CAD, then journalled to USD side of an RRSP where they will remain. Certainly this manoeuvre will work at brokers TDDI & BMO.

moneyToo - if you've been patient enough to read this far - might you be charged with a mandate to update this story? what will happen if you buy Brookfield, which definitely has a USD dividend, in CAD, then ask to journal/hold this stock on USD side of the account in order to shelter the USD dividend from FX fees?

another possibility - which might happen to you - is that questrade will convert Brookfield's USD dividend to CAD at favourable spot or bank of canada rates. This would also be an acceptable solution to the problem. Alternatively, they might convert a USD dividend to CAD at a rate that includes a punishing FX fee. If this happens, it will take perseverance on your part to identify whether a CAD dividend payment for Brookfield does or does not contain an FX fee.
 

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This is a very boring investment. But the value of shares I bought in 2009 tripled, in 2012 doubled. Here is a link to a very interesting article showing how they operate. I like it.
http://www.canadianbusiness.com/business-strategy/brookfield-asset-management-a-perfect-predator/
The dividend is small, this is true.

I also got some Brookfield Infrastructure Partners UN in my registered account. They also pay small dividend, split into several components: return of capital, interest, US interest, foreign dividend and US dividend.

On the other hand, thanks to owning exciting and large-dividend paying Yellow Pages I now have a capital loss I will carry well into the future. So boring is good.
That was a beautiful article I read in a while. Thanks for sharing. I am going to keep Bruce Flatt’s name in my mind.
 

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you'll note that the company is specifying "registered shareholders."

no company can control how brokers handle dividends for shares that are held in street. These days, nearly all shares are held at brokers in street form. Certainly RRSP shares in particular are always held by a broker as trustee, never by the beneficiary in registered form.

...
Thank you, HP, for such a detailed reply! :) I called Questrade this morning on the way to work, and the representative assured me that the USD dividends of any Canadian stock will be paid in USD in both our RRSPs (where we have Currency settlement set to "Currency of transaction") I recently bought MG for my husband and BPY.UN for myself, and just entered a limit order for BAM.A, so will be keeping an eye on them (but thank you for reminding me that I can just journal the interlisted stocks to USD if for whatever reason the dividends are converted!)

As for POT, I have it in my TFSA (where Currency settlement is set to "CAD" - as I didn't plan to have any USD holdings there) I'm pretty sure the dividends are converted to CAD at the spot rate without any additional charges, but I'll double-check with the next dividend. I have enough shares for a DRIP, so don't mind the conversion (especially at higher rates :)) But with the other 3 stocks I won't have enough shares to DRIP them, so would rather collect dividends in USD - and reinvest in US ETFs...
 

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I am with Questrade and originally bought POT in C$. After learning about the currency skimming for forex I journaled over to POT in US$. Every divvy since has been paid in US$ and the shares have never reverted. Just another example of how CMF has increased my returns because of the wisdom and advocacy of some great members.

Cheers
 

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I am with Questrade and originally bought POT in C$. After learning about the currency skimming for forex I journaled over to POT in US$.
Maybe I'm blind, but I went trough my account activity - and don't see any currency skimming. Last dividend for example:

May 4, 2015

FX rate: $1.00 USD = $1.2092 CAD

Dividend reinvestment REI
POTASH CORP OF SASKATCHEWAN INC CANADIAN LISTED [email protected]$32.60 REC 04/13/15 PAY 05/04/15

It DRIPed 1 share for $39.42 CAD which is exactly $32.60 x 1.2092. Market price of POT on that day in CAD was $39.37 (in 'Balances and Positions"), but, as we know, stock prices fluctuate, so I wouldn't blame Questrade for not buying a share for 5 cents cheaper at the closing price :)

Dividend itself also looks kosher, but is a bit off: 46.08 vs. 46.33 (it was paid on May 5th when FX Rate was lower, 1.2072)

Upd. Now I see it lol If they charge 0.5% for conversion, then it adds up: 101 shares x 0.38 USD = 38.38 x 1.2072 = 46.33 - 0.5% = 46.09. But the same formula doesn't work for any of the three previous dividends (received vs expected: 43.86 vs 43.92, 39.33 vs 40.33, 37.52 vs 38.24)

Anyways, sorry for derailing the thread - I'll check the next POT dividend on July 31st (and hopefully my BAM.A order will get executed before then :))
 

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Dividend itself also looks kosher, but is a bit off: 46.08 vs. 46.33 (it was paid on May 5th when FX Rate was lower, 1.2072)

Upd. Now I see it lol If they charge 0.5% for conversion, then it adds up: 101 shares x 0.38 USD = 38.38 x 1.2072 = 46.33 - 0.5% = 46.09. But the same formula doesn't work for any of the three previous dividends (received vs expected: 43.86 vs 43.92, 39.33 vs 40.33, 37.52 vs 38.24)

that divvy at 46.08/46.33 does look like it was FX'd at prevailing (ie profitable) broker rates, is that what you're saying?

in general, with respect to USD dividends, brokers have recently begun acting more transparently & more fairly in registered accounts, although not yet in non-registered. Presumably as trustees for reg'd accounts, brokers weere badgered by the IIROC.

questrade seems to be a special case, since its mainframe was custom-built, not leased, & they do seem to change their practices frequently, which is what one would expect from a small, privately-held, entrepreneurial firm that is able to move nimbly, unlike the lumbering bank-owned dinosaurs.

(not that you asked mToo, but hairline broker/bank of canada differences in converted dividend amounts occur because the actual spot rate varies every 60 seconds, whereas the BOC rate is usually the picture fixed at noon each day) (thus it's possible, at a broker using spot, to obtain an FX rate that's even better than the BOC noon rate for the same day)

in any event, if both moneyToo & londoncalling are monitoring questrade FX conversion rates, then cmf forum can rest assured that every single decimal place will be scrutinized, dissected & accounted for :peach:
 

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I can continue to attest that Scotia iTrade is still converting dividends in CAD RRSP A/Cs at BOC rates as of the dividend payment date.
Not sure about non-registered accounts.

Questrade is converting CAD to USD using BOC closing rate + 1.99% markup.
I have verified this a couple of times recently and their conversion was accurate right down to the cent.
 

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Thank you for updates! :)

Any word about business partners spinoff? Can't find anything since original announcement in October: https://www.brookfield.com/content/2015_press_releases/brookfield_asset_management_to_create_brookfield_b-43019.html (Was debating whether to sell BAM or buy more... so far my experience with spinoffs via a special dividend wasn't good - getting a few odd shares of a new stock that clutter the account and don't justify the commissions to sell them, with original shares going down :))
 

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I know what you mean about "clutter".
I'll just be dumping the spinoff shares as soon as they arrive.
Haven't heard anything new on that topic.
 

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Any news as to why the dip today? Cannot seem to find any information. Otherwise, looks fairly attractive at its 52 week low.
 

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Bidding war for Australia's Asciano heats up as Qube trumps Brookfield

http://www.4-traders.com/ASCIANO-LTD-6499720/news/Bidding-war-for-Australia-s-Asciano-heats-up-as-Qube-trumps-Brookfield-21817451/

Asciano added that it has given the Canadian firm until Feb. 15 to match the Qube offer. It also published a letter from the Canadian's Chief Executive Officer Sam Pollock promising to raise its offer to A$9.28 per share from A$9.10 and make it all cash.

However, Asciano said, its board determined that "at this stage there was no certainty that a new Brookfield Infrastructure proposal would be made or the timing of such a proposal".
 
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