7 Dividend Paying ADRs Worth Considering

International trade is as old as trade itself. It is widely accepted that a diversified portfolio should have some exposure to the international markets. There are three ways to gain this exposure. Perhaps the easiest is to invest in American companies with extensive business overseas. The trouble with this method is that the investor cannot focus on particular markets or areas of the world. The second method is the most difficult; it is the direct purchase of stock on foreign exchanges. The third method is to purchase American Depository Receipts (ADR) of foreign companies. A negotiable certificate issued by a U.S. bank representing a specified number of shares (or one share) in a foreign stock that is traded on a U.S. exchange. ADRs are denominated in U.S. dollars, with the underlying security held by a U.S. financial institution overseas. ADRs help to reduce administration and duty costs that would otherwise... Read more