6.12.2013

Investing in Foreign Stocks


Followup to Investing Abroad. Click through to WSJ article. What I've learned (and I am still a learner!). I only have access to United States exchanges (NYSE, NASDAQ, OTC) and so if I have a foreign stock I have it via an ADR.
  • The small chart above has stocks that I either have a position in (clear rows) or would like to have a position (blue rows). The larger chart below (click to enlarge) has greater detail (PE, Yield, Withholding)
  • This WIKI article on ADR's is worthwhile. For example, DANOY is the ADR for Groupe Danone which trades as BN in Paris.
  • Some foreign stocks have withholding taxes on the dividends. This is a problem if one has the foreign stock in an IRA account as there is no provision in the US tax code to recover that tax. This is NOT a problem if one has a foreign stock in a non-tax-deferred account as the withholding tax is easily recovered when one files taxes. The foreign tax is accounted as if it is tax paid to the IRS. Very simple.


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