This big pharma company just received an FDA panel recommendation for its obesity drug. The shares have a current dividend yield of 1.3%, paid annually.
Novo Nordisk (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:
The number of ADRs offering DRIPs has grown dramatically since I first started DRIP Investor in 1992.
ADRs typically pay dividends either annually or semiannually. Thus, investors who require more regular cash flow from their investments, such as the quarterly payment schemes of most U.S. companies, may be turned off by the infrequent dividend payment schedules.
ADR dividends will be impacted by currency exchange rates, so future dividends can fluctuate significantly.
A portion of dividends paid on ADRs may be withheld for foreign tax purposes although investors can recoup that money by filing for a foreign tax credit when they file their taxes. The foreign dividend tax issue may seem complicated. However, I have owned foreign dividend-paying stocks and can assure you that the tax implications of owning them are really no big deal.
Novo Nordisk (NVO), which has been a long-time favorite and has put up great return numbers over the years, rising fivefold over the last five years. The company is a world leader in diabetes treatments.
Novo Nordisk’s Overall Quadrix score is a healthy 70 (out of a possible 100).
Charles A. Carlson, CFA, DRIP Investor, www.dripinvestor.com, 800-233-5922, October 2014