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?

Thanks.

2 Answers

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  • Jerry
    Lv 7
    8 years ago
    Favorite 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 L
    Lv 7
    8 years ago

    It's per ADR, converted from the foreign currency into dollars.

    Source(s): experience
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