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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…

Replies to this Post

  1. Amiya C. says:

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

  2. Amrit Titus says:

    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 says:

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

  4. Konnor Coswell says:

    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 says:

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

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