Regarding ADR shares in US market?

Some ADR or {American Depositary Reciepts} stocks listed in the US stock exchange pay dividend.

Does this mean that if i buy those stocks i will recieve dividend??

Example: AngloGold Ashanti Limited is listed at five stock exchanges. Does this mean that i will recieve the dividend if i buy the stock from any of those exchanges??


3 Answers

  • Jerry
    Lv 7
    9 years ago
    Favorite Answer

    If you own an ADR, you receive dividends net of foreign taxes.

    The annual 1099 form from your broker will note "Foreign Taxes Paid".

    When you file US taxes on Form 1040, you take a credit for the amount of Foreign Taxes Paid.

  • Raysor
    Lv 7
    9 years ago

    Yes. With an ADR the Depository buys ordinary shares and issues ADRs against them. So if there is a dividend on the shares then there will be a dividend on the ADRs. Most ADRs consist of more than one ordinary share.

  • 9 years ago

    Yes you will. Even though I believe you are exposed to currency risk technically.

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