Process for payment of dividends to ADR holders looks kinda f***ed up LMAO https://www.novartis.com/investors/...tly-asked-questions#tabadr-shareholders-28331 There is some soft of taxation, with a process for claiming a tax refund, that causes a significant delay, and then there is a currency conversion process. So ADR holders will not know the exact amount of the dividend they receive until several weeks after the dividend is paid to regular shareholders.
Obviously the Swiss government doesn't want US investors. If they did they would register it directly on the NYSE. I own 2 Argentinian bank ADRs (BMA GGAL) and I don't think I ever received any of he stated dividends. ADR investing is strictly caveat emptor. What do you own when buying the Chinese ADRs?
I think the uncertainty surrounding the value of the dividend for ADR holders may be distorting the price of the March 21 options. The ex-divided date is March 11. You definitely do not want to be short an ITM call on March 10.
it has to do with tax treaties between different countries. I’m sure this will get worse before it gets better.
Foreign dividends on quasi-derivative instruments (such as ADRs) will always involve some FOREX risk (and ADR issuer fee). For even more fun times, there are Japenese companies, with US-traded ADRs, where the dividend amount is declared, ex-date defined, future pay-date defined but subsequently cancelled!
I believe some of those Japanese dividends have to do with new laws in Japan. It's how their pension plans are structured...