ADRs as a Dividend Investment

For those of you unfamiliar with the term ADRs, it stands for American depositary receipt. An ADR is a stock that trades in the United States but represents a specified number of shares in a foreign corporation. ADRs are bought and sold on American markets just like regular stocks, and are issued in the U.S. by a bank or brokerage company. For dividend investors looking for diversification, ADRs can offer diversification benefits by allowing us to invest in companies outside of the U.S. and Canada.

Do I invest in dividend-paying ADRs?

In a word, no. The reason I don’t is because I have enough trouble following the stocks that I currently own.  Read More…

This article has 5 Comments

  1. Amiya C.

    With so many options out there i just avoid adrs all together.

  2. Amrit Titus

    It should be better made clear that these receipts were created to allow international companies access to U.S. capital markets over-the-counter or through exchanges like NYSE.

    Interestingly OTC adrs are less regulated and hence where most of them are. That in itself should be a redflag in what you should pick for your portfolio.

  3. Rocio Maltbie

    It’s difficult to monitor these foreign companies and the dynamics of their markets ontop of ones here.

  4. Konnor Coswell

    I have Nintendo (NTDO.YK) and they pay dividends. Because they are a Japanese company their quarterly reports that i get are in Japanese which is a bit of a problem at times. I just rely on american news sites to get my details.

  5. German H

    ADRs are perfectly safe and i have them in my collection of holdings. Not sure why anyone would be concerned.

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