Dividends on OTC Stocks

Discussion in 'Stocks' started by Ted28, Jun 20, 2013.

  1. Ted28

    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! :)
     
  2. 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
     
    artak likes this.
  3. Ted28

    Ted28

    Thanks! :)

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

    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. :D
     
  5. Blacky

    Blacky

    This is Asia, good luck