The shares of this global pharmaceutical company were just upgraded to ‘Buy’ at Citigroup. The shares have a current dividend yield of 2.40%, paid semi-annually.
Novo Nordisk A/S (NVO)
From DRIP Investor
It is extremely easy for any U.S. investor to buy individual foreign stocks via American Depositary Receipts. ADRs are securities that trade on U.S. exchanges and represent ownership in shares of foreign companies. Investors buy and sell ADRs just as they buy and sell U.S. stocks.
ADRs are quoted in U.S. dollars and pay dividends in U.S. dollars. And those dividend payments, in many cases, receive the current preferential tax treatment afforded qualified
dividends paid by U.S. companies.
Investors can buy ADRs in a variety of ways:
■ Via a broker.
■ Via ownership in a mutual fund.
■ Via direct-purchase/dividend reinvestment plans.
The number of ADRs offering DRIPs has grown dramatically since I first started DRIP Investor in 1992.
One of my favorites is Novo Nordisk A/S (NVO). Novo Nordisk, based in Denmark, is a leading provider of diabetes treatments. I’ve been a long-time fan of these shares, partly due to what
amounts to a global epidemic in diabetes and the need for treatments.
The stock’s price action has been impressive relative to a lot of pharmaceutical stocks, as these shares are trading just off their 52-week high. I own the stock and recommend these shares as an excellent way to gain foreign exposure in a portfolio.
Charles B. Carlson, CFA, DRIP Investor, www.dripinvestor.com, 800-233-5922, October 2019