Investors wishing to play stocks of non-U.S. companies have long relied on American Depositary Receipts (ADRs)—receipts held by a U.S. bank that represent stock in a foreign company typically traded on U.S. stock exchanges. ADRs make it simpler for U.S. investors to invest in overseas markets.
With the increasing emphasis on non-U.S. stocks—we at S&P currently recommend that investors hold 20% of their portfolios in foreign equities—ADRs have garnered increasing attention. ADRs can be a smart way to play growth in overseas economies and markets, while they can also hold allure for the dividend crowd.
For this week's screen, we searched our database for ADRs that carry a dividend yield of at least 4%—more than twice the average for the S&P 500 index. And to enhance their appeal, we next looked for those with a five-year historical dividend growth rate of more than 20%.
When we finished our search, these five names turned up:
|E.ON AG (EON)|
|HSBC Holdings (HBC)|
|KT Corp. (KTC)|
|Tele Norte Leste Participacoes (TNE)|
|Vodafone Group (VOD)|