Foreign dividend stocks are based outside of the U.S., but have shares that trade on U.S. exchanges. Normally, these shares will trade ADR (American Depository Receipts).
If you’re looking to invest in foreign dividend stocks, you may also be interested in foreign dividend paying exchange-traded funds (ETFs). These funds offer a diversified basket of foreign country holdings. They are investment structures that are traded on stock exchanges, similar to equities. They’re also similar to mutual funds in that they hold securities of many companies. For example, if you’re interested in investing in India, here’s a list of India ETFs
3 Reasons to Invest in Foreign Dividend Paying ETFs:
- ETFs offer lower fees when compared to other investment funds and vehicles, such as mutual funds.
- They provide diversification in the basket of foreign dividend stocks in the ETF, which lowers portfolio market risk.
- It’s easy to gain exposure to many foreign dividend stocks with just one vehicle (ETF).
Whereas, if you’re interested in investing in individual foreign dividend stocks, the table below lists them all: