Earnings for this Ireland-based airline are forecasted to grow at an annual rate of 58.4% over the next five years.
Ryanair Holdings plc (RYAAY)
From DRIP Investor
When investing overseas, I prefer a “hybrid” strategy, which considers funds and ETFs along with individual foreign stocks. Think of it as a “hub-and-spoke” approach to international investing. The hub of the portfolio consists of mutual funds and ETFs. The spokes represent individual stocks.
The good news is that 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 own ADRs in a variety of ways:
- Via a broker.
- Via ownership in a mutual fund.
- Via direct-purchase /dividend- reinvestment plans.
Based in Ireland, Ryanair is Europe’s largest airline group, carrying 149 million guests (pre-Covid) on more than 2,500 daily flights from over 80 bases in 37 countries, primarily Europe.
I’ve never been a huge fan of investing in airline stocks. However, I made Ryanair an exception because of its low-cost approach and its play on increased mobility in Europe. The stock is roughly flat so far this year, but I expect these shares to benefit as travel and leisure restrictions loosen in Europe.
Minimum initial purchase in the Ryanair direct-purchase plan is $200. There is an initial enrollment fee of $10. Subsequent minimums are $50. Purchase fees are $5 plus $0.10 per share. Dividend reinvestment fee is 5% of amount reinvested ($5 max) plus $0.10 per share. Selling fees are $10 plus $0.10 per share. The plan administrator is Computershare/Bank of New York Mellon. For enrollment information call (877) 373-6374 or visit computershare.com.
Charles B. Carlson, CFA, DRIP Investor, dripinvestor.com, 800-233-5922, October 2021