I have a large portion of my dividend income sourced from international dividend stocks. In my view, there are several strong reasons to consider holding pure play foreign dividend stocks that can be invested in via ADRs (American Depository Receipts) or via stocks trading on the pink sheets.
1. The U.S. doesn’t account for the full universe of opportunities.The U.S. is undoubtedly the dominant global market. Still, it only represents half of the global stock market by value. Excluding foreign stock markets effectively excludes close to half of the global opportunities that are available to you as an investor.
2. Exposure to stronger economic growth. The markets of the BRICs (Brazil, Russia, India, and China) have experienced significant economic growth in the last few years, collectively growing in excess of 8% in 2010 and 6.5% in 2011. That’s significantly greater than the U.S. has experienced in this time.
If you are interested, you can find the rest of this article here at Seeking Alpha.