Foreign stocks usually pay higher dividends. Five of the foreign ADRs that pay more than 6% dividends as of the market close on November 20th are listed below:
1. Company: Tor Minerals (NASDAQ:TORM)
Current Dividend Yield: 13.38%
2. Company: Administradora de Fondos de Pensiones Provida SA (NYSE:PVD)
Sector: Investment Services
Current Dividend Yield: 8.31%
3. Company: Magyar Telekom Nyrt (MTA)
Current Dividend Yield: 8.89%
4. Company: Hellenic Telecommunication Organisation SA (OTE)
Current Dividend Yield: 6.38%
5. Company: Telecom New Zealand (NZT)
Country: New Zealand
Current Dividend Yield: 9.90%
It must be noted however that tax treatments of foreign company dividends may vary depending on the reciprocal tax treaties with the U.S.
Denmark-based TORM was hit pretty hard during the credit crunch last year when global trade collapsed. However in the long-term it offers value and pays consistently high dividends. The traditional telecom companies listed above also have high yields with Telecom New Zealand offering nearly 10%.