With interest still in the proverbial toilet, investors needing income have continued to look outside the box. And that includes going overseas for dividends.
Just like here at home, there’s plenty of companies in both emerging and developed markets that pay some rich dividends. And there’s plenty of reasons investors may want to search international stocks to get their income fixes — two of the biggest reasons being higher yields and cheaper stock prices.
But going global does have some stipulations that must be dealt with.
For dividend investors, that means the effects of currency on their bottom lines and payouts. The effects can be so great that it actually could turn gains into losses. So the question for dividend investors looking overseas is whether or not to hedge those dividends.