Recently, I wrote an article on short selling. In it, I mention one problem of short selling: that someone can short your shares and thus, you wouldn’t receive the dividends.
I was looking at my statement today when I noticed this:
To the person who is shorting my Canadian bank stocks: seriously, F U.
Because of you, I won’t receive the tax credit for eligible dividend. This means 100% of the amount above will be taxed.
Thank you very much. Sincerely, it is much appreciated. I love when I invest in a company specifically because I want to receive a tax credit and then I don’t receive it.
Who the hell shorts Canadian banks anyway? This is perhaps the worst thing in the world you can short. They go up all the time, they pay a stable dividend and barely anything safe for a massive crisis can affect them. And if a massive crisis is about to happen, there’s far better things to short than Canadian banks.
Go short Valeant or something like that. Go short blackberry or Metro or even Dollarama for all I care. Leave my canadian banks alone!
How do I know my shares have been borrowed? Simple: the “payment in lieu” above. This means I am not receiving dividends, but a “payment in lieu.” A payment to compensate me for the dividend I don’t receive since someone borrowed my shares and sold them. On $1,000 of dividends, I would normally pay $200 in taxes maximum, but now I’ll pay $350 or potentially even more.
Seriously, F U. I hope canadian banks soar and ruin you, asshole!