Stock market alternative currency payouts?

Been putting this question in various search engines and getting no answers. Basically I'm wondering if you can say buy a stock/bond (of any variety) in USD and have the stock's dividend payout in another currency (say Swiss franc. While I still plan to use the stock market for early retirement investing I want to make sure I can do it without having to depend on the US dollar.

Anyone have a clue?
 

paninaro

Pelican
Generally, no. The stock has to comply with the rules of the exchange they are listed on. My guess is the NYSE for example does not allow dividend payouts (from the stock) in currencies other than USD.

However, if you can find an exchange outside the US that offers the equivalent of ADRs, then that may work. Note you still have forex risk as the underlying security is still in USD, as are its underlying dividend distributions -- they would just be converted to the exchange's currency at the time of distribution (minus a small fee I'm sure).
 
Thank you paninaro, at this point everything is in a state of flux. It's hard to guess how long until the final imperial (mis)adventure that sinks the USD to the bottom of the pacific ocean.
 

Coja Petrus Uscan

Hummingbird
Gold Member
Maybe not what you are looking for, but Swiss bank Dukascopy allows you to depoait, hold and cash out in crypto. That will probably be a better hedge against tye dollar this year. Though thier array of finanical products is limited.
 

paninaro

Pelican
Thank you paninaro, at this point everything is in a state of flux. It's hard to guess how long until the final imperial (mis)adventure that sinks the USD to the bottom of the pacific ocean.

What do you plan to spend your money on? The USD has had its ups and downs over the years relative to other currencies like the Euro. However, it didn't affect the daily life of most people in the US since most of what they spend on in a daily basis is not subject to currency risk. Most food is domestically produced so input costs are in USD; mortgages and other financial instruments are in USD; oil is priced in USD. Also the Chinese Yuan is closely linked to the USD -- it doesn't free-float.

Where it makes a difference is on the purchase of imported goods, be it from Canada or Europe. If you don't buy a lot from those countries, your daily expenses may not change much regardless of the USD value against other currencies. In the case of Canada, since the US is its largest export partner (and vice versa), the Canadian central bank has intervened in the past to prop up currency values against the USD so that Canadian goods are still price competitive in the US market.
 
First on assets that produce income (aka stocks and if conditions are favorable real estate), once I've reached 3000 usd income per month (post tax) I'll pull the plug and move either to Latam or the Southeast asia.
 

typtre

Robin
I think if you use Interactive Brokers you can buy non-US stocks which will pay you in non-US dollars.
What you do is deposit US dollars, trade dollars for the foreign currency, and then trade the foreign currency for the foreign stock.

I have not got around to use it myself yet but that is my understanding of it.
 

paninaro

Pelican
First on assets that produce income (aka stocks and if conditions are favorable real estate), once I've reached 3000 usd income per month (post tax) I'll pull the plug and move either to Latam or the Southeast asia.

If you know your plan well, you can hedge with a currency swap. For example, let's say the USD:EUR rate was 1:1 right now, but you think it will get worse in a few years. You can buy a currency swap now like saying you'll pay $1,000 USD now so you have the option to trade $100,000 for 100,000 EUR 5 years from now. I'm oversimplifying it, and this is a complex financial instrument, but if your main goal is to hedge currency risk, this is a way to do it.
 
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