An American Depositary Receipt (ADR) is an issued certificate that represents shares of a foreign stock. While these certificates represent shares of foreign stocks, they trade on U.S. exchanges and are not subject to foreign taxes or fees.
ADRs were first traded on U.S. exchanges in 1927.These investments help American investors invest globally easily by avoiding currency exchanges and fluctuating prices.
Investing abroad can be very complex for investors. Some securities cannot be purchased through U.S. based brokers. In some cases, investors need to open a brokerage account in another country.
ADRs can offer a lot of flexibility for investors. They are typically easy to buy and sell, just like U.S. based common stocks. However, they do have less liquidity than common stocks. Another added bonus for investors with ADRs is that they are priced in U.S. dollars and dividends are paid in U.S. dollars.
Top ADR Dividend Stocks
GlaxoSmithKline ADR (NYSE: GSK) is a UK-based healthcare company. The stock has a dividend yield of about 5%. The company’s biggest challenge is dealing with the expiration of its respiratory drug Advair. It has been attempting to gain market share by cutting prices. GSK ranks 3 on our Top 100 Dividend Stocks list.
Teva Pharmaceutical ADR (NYSE: TEVA) is an Israel-based pharmaceutical company that focuses on generic drugs. Teva has a dividend yield of about 3%. The company’s stock has fallen due to a weak outlook, but the company could be ready for a comeback. TEVA ranks 7 on our Top 100 Dividend Stocks list.
Diageo PLC ADR (NYSE: DEO) is a UK-based alcoholic beverage company.The company has a dividend yield of approximately 3%. The company has been making efforts to expand its business in North America, which is an area that accounts for a significant amount of its bottom line. DEO ranks 12 on our Top 100 Dividend Stocks list.
Infosys ADR (NYSE: INFY) is an India-based IT company that offers business services, such as outsourcing. The stock currently has a dividend yield around 2.5%. The company is one of the most well known companies in the industry, but has struggled to keep up its guidance. INFY ranks 18 on our Top 100 Dividend Stocks list.
Nestle SA ADR (NSRGY) is a Switzerland-based health and nutrition company. The company offers a dividend yield of 3%. The company is down this year, but the diversity it has in its businesses should benefit the company. NSRGY ranks 27 on our Top 100 Dividend Stocks list.
Novartis ADR (NYSE: NVS) is a Switzerland-based healthcare company that focuses on the R&D and marketing of products. The stock currently offers a dividend yield of 4%. The company has been trying to grow its business by considering potential M&A opportunities. NVS ranks 28 on our Top 100 Dividend Stocks list.
Siemens AG ADR (NYSE: SIEGY) is a Germany-based energy conglomerate. The company currently has a dividend yield of about 3.4%. Siemens has done a good job diversifying its businesses and plans to expand further in its digital business. SIEGY ranks 60 on our Top 100 Dividend Stocks list.
Total ADR (NYSE: TOT) is a France-based oil and gas company. The company currently has a dividend yield of 5.5%. The company is directly impacted by the price of oil, which causes volatility during oil price swings. TOT ranks 94 on our Top 100 Dividend Stocks list.