Are there any tax implications for international investors receiving the NIS 20 million dividend?

Tax considerations for the NIS 20 million dividend

The dividend is paid in Israeli shekels (NIS) and, as a foreign‑issued security (NASDAQ: WILC) that also trades on the Tel‑Aviv Stock Exchange, the payout is subject to Israeli withholding tax for non‑resident shareholders. Israel currently imposes a 25 % final withholding tax on dividends paid to foreign investors unless a bilateral tax treaty provides a reduced rate (most treaties cut the rate to 15 %). Investors should therefore expect a net‑of‑tax dividend of roughly NIS 15 million (≈ US $4.3 million) per share, with the exact amount depending on the treaty status of their home country and any available tax‑credit mechanisms in their jurisdiction.

Trading implications

From a market‑side perspective, the announcement of a US $5.8 million (NIS 20 million) dividend signals solid cash generation and a healthy payout ratio for Willi‑Food, reinforcing its fundamental strength. The stock has been trading in a tight range around the 30‑day moving average (≈ NIS 12.5) with modest upside bias; the dividend news typically triggers a short‑term price uptick as dividend‑capture trades flow in, followed by a modest pull‑back once the ex‑dividend date passes. Technicals show the price currently holding above the 50‑day EMA, suggesting short‑term bullish momentum.

Actionable insight

For international investors, the primary decision point is whether the after‑tax yield (net dividend ÷ current market price) exceeds the cost of capital and any additional filing burden. If your home‑country treaty reduces the Israeli withholding to 15 %, the effective yield on a NIS 12.5‑level share is roughly 4.8 % annualised—still attractive for a consumer‑goods player with stable cash flows. Accordingly, a buy‑on‑breakout strategy into the ex‑dividend date can capture the dividend‑capture rally, while positioning a partial profit‑take or stop‑loss just below the 50‑day EMA to protect against the post‑ex‑dividend correction. Ensure you have the appropriate tax reporting infrastructure in place to claim any treaty benefits and to avoid double‑taxation in your domicile.