ADR stands for American Depository Receipt, which is a certificate that lets investors invest in a foreign company on U.S. stock markets.
ADRs are sponsored by banks and brokerage firms in the U.S.
An ADR may represent one or more shares of the foreign stock. But if the stock is expensive, it may represent a fraction of a share. That way, the ADR will start trading at a moderate price, or be in range of similar stocks on the exchange where it trades. The price usually stays close to the price of the foreign stock in its home market.
ADRs make it practical for increasingly global-minded investors to invest in foreign companies, despite language barriers, shifting foreign exchange rates and the difficulty of trading on a foreign stock market.
Foreign firms benefit from ADRs by letting companies offer dollar-denominated shares and raise capital in the U.S. Issuing ADRs also raises a non-U.S. firm’s liquidity and visibility in the United States and around the world.
Depositary banks that issue ADRs sometimes charge fees for their services, and deduct these fees from the dividends and other distributions on the ADRs. The depositary bank also incurs expenses for services such as converting foreign currency into U.S. dollars, and passes these costs on to ADR holders.
We believe most investors could benefit from holding some foreign investments in their portfolios for added diversification—and that ADRs are a good way to do it.
At TSI Network, we recommend using our three-part Successful Investor philosophy:
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Shortages of computer chips and other components are weighing on Toyota and Honda’s profits. However, the easing of COVID-19 lockdowns in China and other countries should improve the flow of these parts. Investors will also benefit from consumers’ embrace of electric vehicles.
TOYOTA MOTOR CO. ADRs… Read More
PROCTER & GAMBLE CO., $142.97, New York symbol PG, is a buy.
The company is one of the world’s largest makers of household and personal-care goods. Major brands include Tide (laundry detergent), Pampers (diapers), Gillette (razors), Crest (toothpaste) and Vicks (cold remedies).
In its fiscal 2023 second… Read More
PROCTER & GAMBLE CO. $152 (www.pg.com) is a buy. The personal and household products maker continues to benefit from its 2014 decision to shed about 100 of its less-important brands and focus on about 65 core brands. Between 2018 and 2022 (fiscal years end June 30), its sales… Read More
DIAGEO PLC ADR $181 is a hold. The company (New York symbol DEO; Conservative Growth Portfolio, Consumer sector; ADRs o/s: 577.6 million; Market cap: $104.5 billion; Price-to-sales ratio: 5.5; Dividend yield: 2.2%; TSINetwork Rating: Above Average; www.diageo.com) is a leading maker of premium alcoholic beverages. Top brands include… Read More
An easy way for investors to gain international exposure is with well-established foreign firms whose shares trade as American Depositary Receipts on the New York exchange. Here are updates on three of our favourite ADR stocks (including Diageo, see box).
ABB LTD. ADRs $30 is a.. Read More
A: An American Depositary Receipt, or ADR, is a U.S. traded proxy for a foreign stock and represents a specified number of shares in that foreign corporation.
ADRs are bought and sold on U.S. stock markets, just like regular stocks, and are issued or sponsored in… Read More
SONY GROUP CORP. ADRs $82 is a hold. The Japanese conglomerate (New York symbol SONY; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 1.3 billion; Market cap: $106.6 billion; Price-to-sales ratio: 1.3; Dividend yield: 0.3%; TSINetwork Rating: Average; www.sony.com) reported 9.1% higher sales in its fiscal 2023… Read More
Thanks to a better supply of computer chips, controlling a variety of vehicle functions such as power steering and braking, Toyota and Honda are once again increasing their production. They are also benefitting from the low value of the Japanese yen, which makes their products… Read More
YAMANA GOLD INC., $6.80, is a hold. The miner (symbol YRI on Toronto) owns and operates five gold mines, in Canada, Brazil, Chile and Argentina. This includes the Cerro Moro gold/silver mine in Argentina. It started up in mid-2018.
On May 31, 2022, Yamana received a $6.7 billion… Read More
DIAGEO PLC ADRs $169 (www.diageo.com) is still a hold. The U.K.-based maker of premium alcoholic beverages reported that its sales in the fiscal year ended June 30, 2022 rose 15.4%, to 15.45 billion British pounds from 12.73 billion pounds in 2021 (1 pound = $1.48 Cdn.). That’s largely… Read More
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This privacy policy is applicable to all TSI Network Visitors, Clients, Employees, Suppliers, Web sites, Management, and all other interested parties. Any links to or from our site are not covered by this policy. We encourage you to read the privacy policies of every site that you visit.
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We do not collect or disclose personal information, except when it is provided to us voluntarily by the site/store visitor with their consent.
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We are continuously in the process of improving our sites and services. If any new features or policies require a change to this current policy, we will post a clear notice of this change on pages of our site where the privacy policy appears. The principle behind this privacy policy is to collect information with your knowledge and consent.
What personal information do we collect?
The information we receive from customers helps us personalize and continually improve your online experience at TSI Network. TSI Network may collect personal information online for all legal purposes, which include, but are not limited to:
Information You Give Us: We receive and store any information you enter on our website or give us in any other way through sign-up forms or ordering forms for publications and services. You can choose not to provide certain information, but then you might not be able to take advantage of many of our services and features. We use the information that you provide for such purposes as responding to your requests, customizing your web browsing experience for you, improving our website, and communicating with you.
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We do reserve the right, however, to collect and perform statistical analyses of the internet traffic to our website for our internal use. However, information collected does not allow us to identify any individual, and will not collect any personal information of the visitor. Furthermore, we do not sell, rent or loan to any outside parties the information collected and analyzed.
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Does TSI Network Use the Information It Receives?
"Contact Us" and Comment Features: TSI Network encourages visitors to its websites to contact us with questions and comments. Email addresses and other information of persons using these features may be collected in order to facilitate our responses to those inquiries.
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Agents: We employ other companies and individuals to perform functions on our behalf. Examples include fulfilling orders, delivering packages, sending postal mail and email, removing repetitive information from customer lists, analyzing data, providing marketing assistance, processing credit card payments and providing customer service. They have access to personal information needed to perform their functions, but may not use it for other purposes.
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If you wish to request access to, or correction of, your personal information in our custody or control, or find out how we've used or disclosed that information, please make your request in writing to us. We may need to verify your identity before searching for or providing you with personal information. In some circumstances, we may not be able to provide access to your personal information, for example if it contains the personal information of other persons, if it constitutes confidential commercial information, or if it is protected by solicitor-client privilege. If we deny your request for access to, or refuse a request to correct, your personal information, we will advise you of the reasons for this refusal.
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Changes to this Policy
This Policy is the sole authorized statement of TSI Network's practices with respect to the collection of personal information through TSI Network's websites and the subsequent use and disclosure of such information. Any summaries of this Policy generated by third party software or otherwise (for example, in connection with the "Platform for Privacy Preferences" or "P3P") shall have no legal effect, are in no way binding upon TSI Network, shall not be relied upon in substitute for this Policy, and neither supersede nor modify this Policy.
TSI Network may revise this Policy from time to time.
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