What are the tax implications for US‑based investors despite the disclaimer?

Tax take‑away for US investors

Even though the press release is stamped “Not for distribution in the United States,” any US‑based shareholder who actually receives the dividend is still subject to U.S. tax rules. The cash payout from Rogers Sugar (a Canadian issuer) will be treated as ordinary dividend income on your 2025 Form 1040 and, if the dividend qualifies as a “qualified dividend,” it can be taxed at the reduced 0 %/15 %/20 % rates rather than the ordinary 37 % top rate.

From the Canadian side, a non‑resident withholding tax is applied at the statutory 15 % (reduced to 0 % for a portfolio‑interest‑dividend, if the company meets the “qualified dividend” criteria). The amount withheld can be claimed as a Foreign Tax Credit on IRS Form 1116, offsetting your U.S. tax liability on the same income. If you receive a 30 % U.S. backup withholding (e.g., because the payer could not verify your W‑9), that amount is also creditable on your U.S. return. In short, the net after‑tax yield will be:

[
\text{Net dividend} = \text{Gross dividend} \times (1 - 0.15_{\text{Canada}}) \times (1 - \text{U.S. marginal rate (qualified)})
]

Trading implication

Because the dividend is subject to a 15 % foreign‑tax drag, the effective yield is lower than the headline rate, which can cap upside in the short‑term. Expect the ex‑dividend date to trigger a modest price adjustment roughly equal to the pre‑tax payout, but the post‑tax cash flow to many U.S. holders will be smaller. If you are a high‑income investor (marginal U.S. rate > 20 %), the after‑tax return may still be attractive relative to comparable U.S. equities, especially given Rogers Sugar’s solid balance sheet and stable cash generation.

Actionable insight – confirm you have a valid W‑9 on file with your broker to avoid unnecessary 30 % U.S. backup withholding, and be prepared to file Form 1116 to capture the foreign‑tax credit. The dividend’s net‑of‑tax yield remains a modest but reliable income stream; incorporate the 15 % Canadian withholding into your position‑size calculations before taking a new long or adding to existing holdings.