When you invest in a dividend paying ADR, do you receive dividends per share or per ADR receipt?
Suppose that one receipt is equivalent to 10 shares. Is the dividend on each share or per receipt?
- JerryLv 78 years agoFavorite Answer
The dividend is per ADR.
There is one complication. You do not receive the full value of the underlying dividend. Foreign tax is withheld at that country's applicable rate.
At year end, your brokerage statement will note an amount for "Foreign Taxes Paid". You claim that foreign tax amount as an offset on your tax return.
- John LLv 78 years ago
It's per ADR, converted from the foreign currency into dollars.Source(s): experience