Shares & Dividends - different exchanges

[CorkGuy12]

Hi all,

Dividends are paid per share held, but what is the situation when shares are traded in different markets, at different prices?

E.G. - AIB is about €10 at the moment on the London and Dublin exchanges, so €1000 would get me 100 shares say. However, AIB is trading at around $31 in New York (about €20), so €1000 would get me 50 shares.

If the dividend was say 80c, I'd get €40 if I had the shares in the US, or €80 if they were in Europe. (On the other hand I realise it's cheaper to trade in the US, with stamp duty etc)

(Sorry for mentioning a specfic stock, but an example makes it clear)

With us in an uncertain market at the moment dividends are becoming a significant part of an investment, especially in these high yield stocks. (about 8% or so with AIB), so in this example one could double the yield merely by choosing the right exchange?

Am I on the right track here, or way off the mark?

Thanks,

Tim

 

[ClubMan]

E.G. - AIB is about €10 at the moment on the London and Dublin exchanges, so €1000 would get me 100 shares say. However, AIB is trading at around $31 in New York (about €20), so €1000 would get me 50 shares.

Presumably AIB trade on NYSE in the form of ADSs worth 2 shares or so?

 

[ClubMan]

Yes - as I suspected - from the [broken link removed]:

2.Stock Exchange Listings

Allied Irish Banks,p.l.c.is an Irish-registered company.Its
ordinary shares are traded on the Irish Stock Exchange,the
London Stock Exchange and,in the form of American
Depositary Shares (ADSs),on the New York Stock Exchange
(symbol AIB).Each ADS represents two ordinary shares and
is evidenced by an American Depositary Receipt (ADR).
The Companys non-cumulative preference shares are listed
on the Irish Stock Exchange,and are eligible for trading in
the USA,in the form of American Depositary Shares,in the
National Association of Securities Dealers,Inc.s PORTAL
system under rule 144A.

 

[CorkGuy12]

Thanks Clubman! Makes sense now.

Tim