Diamonds in the Rough

Investors have traditionally stayed away from the OTC market (Pink Sheets) since they were considered to be unsafe.While this is true since many penny stocks trade in the pink sheets and are highly risky, there are some high quality foreign companies that trade in this market. Some of these companies are multi-billion dollar well established companies in their domestic countries. When the New York Stock Exchange raised the fees a few years ago and the Sarbane-Oxley regulations came into effect quite a few foreign companies delisted their ADR stocks from the NYSE and listed them in the OTC market.

The following are some of the sponsored ADRs trading in the OTC markets:

1. Nestle SA (NSRGY)
Dividend Yield: 3.29%

2.Enel Societa Per Azioni (ENLAY)
Dividend Yield: 9.84%

3. Swedbank (SWDBY)
Dividend Yield: 29.21%

4.Danske Bank (DNSKY)
Dividend Yield: 15.79%

5. Tesco Plc (TSCDY)
Dividend Yield: 6.17%

6. BNP Paribas (BNPQY)
Dividend Yield: 10.04%

7.Henkel AG (HENKY)
Dividend Yield: 3.35%

Some of these stocks may have thin trading volumes. I will list more foreign stocks listed in the OTC market in future posts.

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