This software company is forecasted to grow at a rate of 13.8% next year.
SAP SE (SAP)
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.
ADR direct-purchase plans operate much the same as their U.S. counterparts. Investors obtain enrollment information either by calling toll-free numbers or downloading enrollment information from transfer agent Web sites. Transfer agents are the entities companies hire to administer their plans.
SAP is a foreign investment worth highlighting. It is a German-based technology company. Per-share profits and revenue should show nice growth this year and next. The stock has done well of late in line with the tech sector. These shares provide a nice way to play the tech space while gaining exposure to international equities.
Minimum initial purchase in the SAP direct-purchase plan is $200. The firm will waive the minimum if an investor agrees to automatic monthly investment via electronic debit of a bank account of at least $50. Purchase fees are $5 plus $0.06 per share. Selling fees are $10 plus $0.10 per share. The plan administrator is AST Financial. For enrollment information call (866) 706-8374 or visit www.astfi nancial.com.
Charles B. Carlson, CFA, DRIP Investor, dripinvestor.com, 800-233-5922, October 2020