Based on US stock regulations, foreign individuals purchasing US stocks will have a 30% dividend tax withheld directly. If you prefer not to pay taxes, here are three suggestions:
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Invest in companies that don't pay dividends and focus on earning price differentials. There is an increasing number of US tech companies and listed companies that do not pay dividends. Because companies can reinvest the earnings to generate greater benefits, making the company more growth-oriented and providing shareholders with greater profit differentials!
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Invest in companies with continuously growing dividends. Find stocks with continuous dividend growth every year and with liquidity and trading volume. You can refer to articles about "companies with continuous dividend growth for over 25 years."
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Invest in ADR stocks. ADR (American Depositary Receipt) stocks are issued by companies listed outside the United States but traded on US stock exchanges. Therefore, the tax on ADRs is based on the taxation method for foreign individuals in the listed company's local jurisdiction. For example, buying Taiwan Semiconductor ADRs incurs a 21% dividend tax, while buying stocks from the UK incurs no dividend tax (0%). Note: ADR tax rates may be adjusted annually.
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