According to a recent article in Bloomberg BusinessWeek, 108 foreign large cap reputable companies now trade on the OTC market – also known as the Pink Sheets. Some of the recent firms that have moved to this market include France’s banking giant BNP Paribas, Germany’s Deutsche Telekom and UK’s pay-TV operator British Sky Broadcasting Group. Some of the reasons for the exodus of foreign companies from the traditional exchanges are:
- The cost of listing on OTCQX is $15,000 a year, while an initial listing on the NYSE costs $125,000 to $250,000.
- OTCQX companies need not follow the costly U.S. rules and reporting requirements, including those in the Sarbanes-Oxley law.
- OTC foreign stocks can use international accounting rules instead of the US rules.
Many of the large-cap foreign firms that are listed on this market still follow the strict reporting requirements of their home countries. So US investors are able to find adequate information on these companies.
The OTCQX designation is awarded to companies that have annual revenue of $2 million and a market value of $5 million.Out of the 9,622 stocks listed on the Pink Sheets just 129 meet this criteria.
Five OTCQX stocks with their current dividend yields are listed below:
1.Company: Akzo Nobel N.V. (AKZOY)
Country: The Netherlands
Current Yield: 4.69%
2.Company: BASF SE (BASFY)
Current Yield: 4.00%
3.Company: Marks & Spencer Group Plc (MAKSY)
Current Yield: 5.28%
4.Company: Deutsche Telekom AG (DTEGY)
Current Yield: 7.82%
5.Company: AXA SA (AXAHY)
Sector: Life Insurance
Current Yield: 4.17%
For more foreign stocks visit the OTC market site.