text: are non-u.s. citizen living overseas obligated to pay tax to the irs on stock dividend  from a u.s. company?   stock dividends are generally not taxable. the following is from the irs web site:  distributions of stock and stock rights distributions by a corporation of its own stock are commonly known as stock dividends. stock rights (also known as “stock options”) are distributions by a corporation of rights to acquire the corporation's stock. generally, stock dividends and stock rights are not taxable to you, and you do not report them on your return.