Dividend Stock Investing: Going Foreign

Many investors fail to think of foreign stocks as they formulate an investing plan. However, investing in some well-chosen foreign stocks can be a good way to diversify your portfolio, and look for more earnings from different sources. Before investing, though, it is a good idea to do some research. Just investing in something because it seems like a solid choice, or because someone else gives you a tip, is rarely a good idea. You want to vet your foreign dividend stocks the same way that you vet U.S. dividend stocks.

Where to Find Foreign Dividend Stocks

Finding dividend stocks from other countries might be a little more difficult than identifying dividend stocks in the U.S. However, there are a few ways to go about looking for foreign dividend stocks:

  1. Start in the U.S.: You don’t have to go to foreign exchanges to find stocks from other countries. There are nearly 900 foreign stocks trading on U.S. exchanges. A little more than 1/3 of them pay dividends.
  2. See what you can find in foreign dividend ETFs: One of the best places to look for investing ideas is to look in funds. Dividend funds in the U.S. can provide you with a list of potential companies to invest in. The same is true of foreign dividend ETFs. Check out what is held in different ETFs, and you will find some possibilities. Of course, once you have the company names, it is up to you to research your choices, and decide which ones to invest in.
  3. Subscriptions: Of course, you can always make use of subscriptions and special newsletters. Take a look at our list of foreign dividend stocks.

As always, you want to make sure that you are performing your due diligence. There are plenty of smart dividend investments overseas that can provide you with a way to earn a stable income from dividends, while also adding an element of diversity. Remember: There is a whole world of investments outside the U.S. You might do well to explore other opportunities available to you.