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NRDBY Nordea Bank ADR div. (Helsinki HQ)

CrashCrash
in Other Investing
NRDBY. Div. Payout Ratio of 170.28?????? How can they manage that before it all implodes from within? Current div. yield is over 18%. Crazy nuts. Is this thing worth bothering with? The Nordics are stable, equitable societies, politically, socially, educationally. Nordea has Wealth Management service offices and other connected stuff present in a big bunch of countries, including NYC.
https://www.morningstar.com/stocks/pinx/nrdby/dividends

Comments

  • carew388carew388
    Marketbeat shows a dividend of 47 cents per share for a yield of 5.47%. Bloomberg shows dividend yield of 8.89%. At this point I can't find a reliable info source for this ADR.
  • CrashCrash
    @carew388.... Thanks for the look-see. Another different view, from WSJ:

    yield is 11.76%
    latest div. = 75 cents.
    https://www.wsj.com/market-data/quotes/nrdby
  • MarkMark
    edited July 2022
    My experience with distributions (dividends) from European ADR holdings is that they tend to be quite erratic in amount and timing unlike the even sum quarterly distributions US stocks deliver.

    For example here is the 5-yr history of dividends from NRDBY:

    Mar 16, 2018 0.845 Dividend
    2019 - none
    Mar 26, 2020 0.446 Dividend
    Feb 19, 2021 0.084 Dividend
    Mar 25, 2022 0.781 Dividend

    Bottom line is that dividends (if any) are what the company says they are if and when they feel like distributing one. Also, if you hold them in a taxable account they can be a nightmare come tax return filing time. You may or may not receive what you think you should because of foreign tax withholdings. I have held issues in a Roth account where the foreign tax is not withheld.
  • CrashCrash
    edited July 2022
    @Mark. Glad to hear from you. I appreciate the homework you did. From the get-go, it all seemed too good to be true, anyhow. On the other hand, I don't want to MARRY it, but I'm rather pleased with the way regional bank BHB has held up, and it has a history of regular dividends which grow steadily. And just lately, a share buy-back program was announced: but it's only 5% of the total shares outstanding.
  • msf
    I have held issues in a Roth account where the foreign tax is not withheld.

    While I haven't held foreign stocks directly or "semi-directly" (via ADRs or GDRs), ISTM that the withholding of foreign taxes on stocks mirrors that of foreign taxes on mutual funds. That is, the foreign taxes are withheld before you or your IRA ever sees the div. You just get the net.

    Morningstar (Christine Benz) writes:
    Things start to get really wonky when you hold a foreign stock or foreign stock fund in an IRA or other tax-sheltered account. If a foreign stock that you own--either directly or indirectly via a foreign stock fund or exchange-traded fund--pays you a dividend, your taxes due on that payout will be withheld by the foreign government, reducing your payout accordingly, as discussed [in the paragraph discussing foreign stock in a taxable account].
    https://www.morningstar.com/articles/914550/should-you-keep-foreign-stocks-out-of-your-ira

    There's a lot more detail here:
    https://www.dividend.com/portfolio-management-channel/how-does-taxation-of-adr-stocks-affect-investors/

    That page reiterates what Ms. Benz wrote:
    Typically, tax-deferred accounts are great strategies for investors who do not have to worry about the tax implications of dividends. However, ADRs still require withholding, regardless of the type of account it is held in.
    Regarding the divs from NRDBY, Crash gave a source for divs. That shows a div every year, and two in 2021 including one with an ex-div date of Oct 4, 2021. See also:
    https://www.dividend.com/stocks/financials/banking/banks/nrdby-nordea-bank-abp-adr/ (click on "view all payout history")

    If your source is showing no div for 2019 perhaps that is due to the reverse merger (and relocation from Sweden to Finland) that took place in late 2018. I don't know; I'm just pointing out a nearly coincident singularity that could have affected the source's tracking of divs through the transition.

    https://www.globenewswire.com/news-release/2018/10/01/1587511/0/en/Nordea-Bank-AB-Completion-of-Merger.html
  • CrashCrash
    +1. ...And yes, I was miffed when ENIC withheld foreign Chilean tax on my already-tiny dividend. Good riddance to bad rubbish. Taxable account, it was.

  • MarkMark
    edited July 2022
    @msf, I used the Yahoo Finance page as my source of the distributions I posted. Guess I need to look around more. Thanks for the update.

    Pull up the quote for NRDBY at Yahoo. Select Historical Data. Choose "Monthly" and "5Yr" and select "Apply".
  • Derf
    @Mark : I also have had some trying times lately with Yahoo finance YTD figures. Do they get their info from Morningstar ?
  • MarkMark
    @Derf - according to Yahoo (if you can trust the source:) )

    Data Providers
  • catch22catch22
    Hi @Derf @Mark et al
    I've looked at previous, but don't use Yahoo Finance for performance data. Perhaps one needs to "sign in" for accurate info.
    My one quick and dirty view is via M*......no subscription needed.
    I look at about 20 items per week for performance for 1 week and YTD. The data is generally loaded by Saturday mornings.
    The below link for FBALX is an example. Scroll down for performance data. The "returns" tab is highlighted and one may select the "distributions" tab adjacent if you want to look at this area.
    Use the "search quotes" at the top left of the page to enter a new quote.
    For ADRs and stocks, once the new page has loaded, select "trailing returns" for current performance data.
    ETF's...........enter ticker........a brief overview will load for the current or last business day. Select "performance" for data to load for various time frames.
    Lastly, I checked several tickers at Yahoo and the performance data was crap, IMHO; when compared to M*.


    FBALX info HERE via M*.
  • MarkMark
    @catch22 - I have had similar issues with the data provided by M* "BUT" maybe because I've been comparing it to Yahoo's data and vice versa. I also can't always seem to find the data I'm looking for at M* without the benefit of being one of their esteemed paying clients. As I mentioned to @msf I'll just need to do a better job of searching sources. Thank you for your input.
  • catch22catch22
    @Mark
    I don't use M* for other purposes (as noted previous); as having accounts with Fido provides more than we need for our info gathering.
  • MarkMark
    Usually the same.
  • msf
    Yahoo is okay for some things, but when the quality of the data is important, it's better to go upstream, closer to the source. Yahoo is just a tertiary source, getting much of its data from Morningstar. Though "US equities and global index historical data and daily updates [are] provided by Commodity Systems, Inc."
    https://help.yahoo.com/kb/finance-for-web/SLN2310.html?locale=en_US

    The underlying company, Noreda, has a useful investor page, with this dividend graph:
    image

    https://www.nordea.com/en/investors/nordea-as-an-investment

    To work forward from this to the ADR distributions one would convert the divs from euros to dollars using the then current exchange rates. Also, one would take into account the money skimmed by the ADR as pass-through fees
  • CrashCrash
    interesting, all. On a Sunday morning here, I'm glad to read all of this input.
  • johnNjohnN
    edited July 2022
    Ty crash for the recommended stock NRDBY
    How long have you hold it and are you happy w it?...thinking add it for long term.


    We been buying more XLF BAC

    looking at Citigroup now, had it but sold it few years ago [W.Buffet add so much Citigroup last wk??]

    Happy Sunday
  • CrashCrash
    edited July 2022
    @johnN. No, no, no: I do not own it..... yet. If ever I can uncover RELIABLE data about it, I might nibble. But this conversation has steered me away. It might be the best bank in the world, but if investing in it is a crap-shoot, I'll just pass. Surely, it's solid and reputable. I just need numbers that MEAN something and can be trusted. And I recall that foreign tax must be paid, before profit is distributed. I DON'T like THAT. My latest obsessions are FNLC First National Bank, Maine and POWW. Ammo, Inc. Without deliberately deciding to do it, I suppose I do tend to lean heavily toward financials. And I'm QUITE sure that POWW will be able to sell every stinking bullet they manufacture.
  • johnNjohnN
    Ty Sir Crash
    You have a wonderful week
  • CrashCrash
    edited July 2022
    ..... And at just this moment, Bloomberg TV reports that Nordea Bank NRDBY reported earnings. The bank beat estimates, on growing loans. (!!!!) ;)
  • hank
    edited July 2022
    Thread has perked my interest. …

    Only been able to purchase individual stocks for little over a year after moving to Fido. Just assumed that inside a traditional or Roth IRA, for tax purposes, they would be treated the same way as mutual funds which I’m more familiar with are - including foreign ADRs. In general, is my assumption correct?

    Dividends? To me, they are the frosting on the cake. Set it to “auto-reinvest” at Fido and pretty much forget it.
  • BenWPBenWP
    @hank: the only difference I know of regarding stocks or funds in a brokerage account is that ADRs are ineligible for automatic dividend reinvestment. This is true at Schwab, FWIIW.
  • hank
    edited July 2022
    Thanks@BenWP. I can breath easier.

    I do own NSGRY (Nestle ADR) at Fido. No big deal. The check-off for auto reinvest seemed to take. But time will tell. Haven’t had it long enough yet.

    It was nice to see a decent dividend paid / reinvested this morning from BAMBX. It’s my largest single holding. Replaced TMSRX around end of last year. Both are off for 2022. But TMSRX continues to lag significantly, being more than 2.5% behind BAMBX at this point in the year. Apologies for straying off-topic. But I believe @BenWP has a special place “in his heart” for TMSRX.:)
  • BenWPBenWP
    @hank: I still feel jilted by TMSRX, the first fund I ever owned in the « alternative » realm. To think that I recommended the fund to my daughter who was a newbie to investing.

    Since then, I have had much better luck with REMIX, though nothing to write home about.
  • CrashCrash
    edited July 2022
    I hope this link will "translate" and appear here LIVE, properly. Here's a ton of statistics about NRDBY from TRP. These numbers are under the heading of "fundamentals." The stock is on my watchlist there, when I sign into my brokerage account.
    **********
    Edited to add: Nope, the scumbags won't let me cut-and-paste it. The link refuses to appear. I will transcribe it, below:
    (By the way, the stock was up on Monday, 18 July '22 by over +6% on that Earnings "beat" from loan-interest growth.)

    P/E. TTM. 8.88
    P/S. 3.66
    P/B. 0.98
    Price/Cash Flow. 5.68
    Quick Ratio = zero. (What is THIS?)
    Current Ratio 0.68
    Long Term Debt to Equity: 397.13
    Total Debt to Capital: 86.66
    Revenue Growth, 3 years: DOWN -6.89
    EPS growth, 3 years: +24.54
    EPS growth, 1 year: +76.94
    Gross profit margin: zilch.
    Operating Profit: 43.52
    Net Profit Margin: 33.37
    ROE. 11.59
    ROA. 0.68
    Return on Investment: 2.35
    Asset turnover: 0.02X
    Inventory turnover: zero.

    These numbers DO specifically apply to the ADR. I dunno if this stuff will change anyone's mind about the stock. And of course, these metrics can look "ootsy" when applied to BANKS, specifically, compared to other sorts of companies.
    ......And don't forget the current dollar strength.....OK, then. As the old Texaco tv commercial used to tell us: "Happy Motoring!"






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