Q&A With Gordon Pape: Opening An Account For U.S. Dividends
A reader wants to know: Is it a good idea to open an account for U.S. dividends?
Q – Would there be an advantage to opening a U.S. dollar account to invest in stocks that have to be purchased in U.S. funds and having dividends paid into it? This would eliminate the currency exchange cost once we purchase the U.S. dollars to fund the account with. We do travel to the sunny south occasionally and could use any U.S. proceeds then. – Ann H.
A – Yes, it makes a lot of sense to do that. Most Canadian banks offer U.S. dollar accounts so you should have no problem in setting it up. – G.P.