[robjan]

I have a feeling that increases in foreign investors also discouraged companies from issuing dividends. For example, I pay 0% capital gains tax but have to pay the US government (where I have never stepped foot) 30% on dividends.

[hnfong]

Agreed. As a non-US tax resident, this factors a lot into whether a buy a stock or not. The 30% flat dividend tax rate pushes a lot of potentially enticing stocks to a bad buy for value.

I wonder whether this sentiment also contributed to the meme stocks popularity, since outside the US nobody really buys US stock with high dividends and are pushed to speculate on volatile stocks ala "stonks go up"..

[murbard2]

Agreed.

In theory you can claim it back, but it's a major pain in the ass. Some ETF issued outside the US and holding US stocks will do it.

Other strategies to avoid this annoyance include:

1. selling on the ex-dividend date and buying the next day.

2. buying a long-date call and selling a put instead of holding the stock

3. simpler version of 2: buy a deep in the money long-dated call, you won't be paying all that much for the convexity, and you don't have to think about dividends.