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How Do Foreign Dividends Affect Your Dividend Income And Its Growth?

Published Thu, 02 Feb 2017 10:39:44 -0500 on Seeking Alpha

Have you thought about how foreign dividends affect your dividend income and its growth?

Since I'm a Canadian who earns foreign (mostly U.S.) dividends, I thought it would be a good exercise to explore if foreign dividends will really boost my income or income growth.
A similar exercise can be done for investors who reside in another country and invest for foreign dividends.
The majority of my foreign dividends are U.S. dollar-denominated.
These include companies which I can buy on the Toronto Stock Exchange, such as Brookfield Infrastructure Partners L.P.[TSX:BIP.UN](NYSE: BIP), Brookfield Renewable Partners L.P. [TSX:BEP.UN)(NYSE: BEP), Brookfield Property Partners L.P. [TSX:BPY.UN](NYSE: BPY) and Algonquin Power & Utilities Corp [TSX:AQN](NYSE: AQN), which yield 4.5%, 5.9%, 5% and 5.4%, respectively.
And also U.S.-based international companies or otherwise, including Pfizer Inc. (NYSE: PFE), Amgen, Inc. (Nasdaq: AMGN), Omega Healthcare Investors, Inc (NYSE: OHI), which yield 4%, 2.9% and 7.7%, respectively.
How does the foreign exchange rate affect my effective dividend income and its growth?
The effective dividend income I receive from my foreign dividends will fluctuate with the change in the strength of the U.S. dollar against the Canadian dollar. The change will also affect the effective income growth.
i) Effective dividend income

The effective dividend income I'll receive depends on the foreign exchange rate at the... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
OMEGA HEALTHCARE INVESTORS 31.97   16.9 1.89 2.60 8.08
PFIZER 36.20   26.6 1.36 1.28 3.52
AMGEN 186.19   17.0 10.97 4.60 2.51


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