Finding Large Cap Foreign Stocks on the Pink Sheets

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Includes: AKZOY, BASFY, DTEGY, MAKSY
by: David Hunkar

According to a recent article in Bloomberg BusinessWeek, 108 reputable, foreign large cap companies now trade on the OTC market - also known as the Pink Sheets. Some of the firms that have recently moved to this market include France’s banking giant BNP Paribas (OTCQX:BNPQY), Germany’s Deutsche Telekom (OTCQX:DTEGY) and UK’s pay-TV operator British Sky Broadcasting Group. Some of the reasons for the exodus of foreign companies from the traditional exchanges are:

  • The cost of listing on OTCQX is $15,000 a year, while an initial listing on the NYSE costs $125,000 to $250,000.
  • OTCQX companies need not follow the costly U.S. rules and reporting requirements, including those in the Sarbanes-Oxley law.
  • OTC foreign stocks can use international accounting rules instead of the US rules.

Many of the large-cap foreign firms that are listed on this market still follow the strict reporting requirements of their home countries. So US investors are able to find adequate information on these companies.

The OTCQX designation is awarded to companies that have annual revenue of $2 million and a market value of $5 million.Out of the 9,622 stocks listed on the Pink Sheets just 129 meet this criteria.

Five OTCQX stocks with their current dividend yields are listed below:

1.Company: Akzo Nobel N.V. (OTCQX:AKZOY)
Sector: Chemicals
Country: The Netherlands
Current Yield: 4.69%

2.Company: BASF SE (OTCQX:BASFY)
Sector: Chemicals
Country: Germany
Current Yield: 4.00%

3.Company: Marks & Spencer Group Plc (OTCQX:MAKSY)
Sector: Retail
Country: UK
Current Yield: 5.28%

4.Company: Deutsche Telekom AG (OTCQX:DTEGY)
Sector: Telecom
Country: Germany
Current Yield: 7.82%

5.Company: AXA SA (OTCQX:AXAHY)
Sector: Life Insurance
Country: France
Current Yield: 4.17%

Disclosure: None