Foreign Investors

Many companies available through the Temper Enrollment Service allow foreign investors to participate in their dividend reinvestment plans. All funds must be in U.S. currency. The enrollment procedure is the same as for U.S. citizens, except that a W-8 tax form must be filed so that taxes are not withheld from dividend distributions. Foreign investors should keep in mind, though, that they may face tax obligations in their own country on the dividend and company-paid fees, just as U.S. investors do here. Also, if their local bank charges for currency conversions, they should factor in this cost in making their investment decisions.

As you may already know, avoiding brokerage commissions can be very meaningful for foreign investors who want to purchase U.S. stocks.

At this site, you will find a complete and current List of Companies available to foreign investors through the Temper Enrollment Service. These companies permit you to invest directly, bypassing brokerage commissions. Please note that these companies include the bluest of the blue-chip companies, the very cream of the corporations that are most widely followed by the investing public.

Which are the best plans for you? Figuring that out is a lot easier when you subscribe to the online version of the Guide to Direct Investment Plans or you may wish to purchase a copy of the print edition of the Guide. The Guide brings you detailed information about over 1,300 plans--transfer agents, investment dates, minimum and maximum investments, discounts, service fees--and, of course, which companies accept direct investments from foreign investors.

Please refer to the information about the Temper Enrollment Service before you use that service to become enrolled in the plans for which you qualify. Once you've decided which plans to enter, simply send your order to the address shown, and the Temper Enrollment Service will do the rest. The directions on the Customer Account/Stock Order Form assumes U.S. dollars drawn on a U.S. bank account.

Accounts without Social Security (or Taxpayer) number are subject to withholding tax on dividends. Foreign investors should request a form W-8 so that taxes are not withheld from dividend distributions.

W-8 Form
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