Dividends on OTC Stocks

[Ted28]

Hi All,

If I buy stock in a foreign company who is listed on the OTC market and pays a dividend, would I get the dividend like I would normally with a NYSE or NASDAQ stock?

For example, LVMUY or SMUUY (a Thai bank) both pay dividends but are OTC listed stocks.

Thanks!

 

[OTCkrak]

yes you do.. but the problem is that the depository bank takes a fee and the net tax amount has a much smaller yield than the foreign underlier.

example is a stock that pays a 0.10 dividend and fee is 0.02 +0.015 every distribution. you would be surprised what the net amount ends up credited to you.

so yes you get a dividend, but don't look at the underlier for yield data especially for OTC ADRs

 

[Ted28]

Thanks!

That's unfortunate they take a cut of the dividends, but what can you do...

 

[piezoe]

Buy dividend paying stock in a country whose currency is assured of rising in value relative to the U.S. dollar. When you find out which stock that is let me know.

 

[Blacky]

Buy dividend paying stock in a country whose currency is assured of rising in value relative to the U.S. dollar. When you find out which stock that is let me know.

This is Asia, good luck