Do Dividend Stocks Benefit From Non-US Revenue?

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Aug 29, 2025

David Harrell, Editor of Morningstar's DividendInvestor newsletter, dives into the intriguing world of US dividend stocks and their surprising international revenue streams. He discusses how many well-known companies depend heavily on foreign markets and the risks of currency fluctuations and geopolitical crises. Harrell also compares revenue from 2021 to today, revealing some unexpected shifts. Investors are urged to consider the balance between US and non-US equities while navigating the complexities of global market dynamics.

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INSIGHT

U.S. Stocks Often Earn Abroad

Many large U.S. companies generate a significant share of revenue overseas, so U.S. stock ownership can include international exposure.
That exposure does not eliminate the need to consider direct international holdings for true geographic diversification.

ADVICE

Check Segment Disclosures Carefully

Use company segment disclosures to estimate where revenue is sourced, but beware inconsistent reporting and fiscal-year timing differences.
Avoid false precision and treat these breakdowns as directional, not exact measures.

INSIGHT

Portfolio Revenue Mix Stayed Stable

The portfolio's weighted revenue mix barely changed since 2021, hovering around a roughly two-thirds U.S. share.
Changes occurred at the company level, but the overall profile remained similar.

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The revenue of US dividend stocks isn’t necessarily made in America. A portfolio of popular dividend-paying stocks is likely exposed to currency or geopolitical risks. That’s due to international revenue exposure: Some US-based companies earn 50% or more of their money outside of the country. A recent analysis of 35 dividend-paying stocks in Morningstar’s DividendInvestor newsletter found several well-known names generate sizable revenue overseas. So, how should investors balance US vs. non-US equity exposure? Morningstar’s DividendInvestor newsletter editor David Harrell explains what investors should know.

Learn about Morningstar’s new Medalist Ratings for semiliquid funds during a live webinar on Morningstar’s YouTube channel on Wednesday, September 10th. CEO Kunal Kapoor and Global Head of Manager Research Laura Lutton will discuss what investors should know about private assets and the first funds to earn the new rating on the Investors First series.

On this episode:

You recently analyzed the international revenue exposure of dozens of dividend-paying stocks. But this wasn’t the first time. Why did you decide to revisit this?

Let’s dissect the investigation. How did you choose which stocks to focus on, and what was the criteria?

How did the recent results compare to the findings in 2021? Were there any surprises?

Let’s zoom in on the revenue. Which dividend stocks increased or decreased their US revenue exposure?

Morningstar analysts consider some of these dividend payers undervalued. Let’s first focus on names with more US revenue exposure. Who are they?

Which companies with more international revenue exposure are undervalued?

International stocks are having a long-awaited banner year versus US stocks. Are investors whose only international revenue exposure is these US-based stocks benefiting from this international rally?

How should investors balance US vs. non-US equity exposure in their portfolios? That is, what if investors looking at their portfolio see that they have home-country bias? What should they consider from a diversification standpoint?

Welcome to Investing Insights, Kunal. Let’s get started with you telling the audience a bit about your career here at Morningstar. It started back in the late 90s, right?

Your series, Investors First, is airing live on YouTube for the first time on September 10th. Can you tell us about the mission behind it? What are you hoping to achieve with the series?

It’s important to have these conversations with investors. What can Morningstar do to further empower them?

Investors have experienced a lot of short-term volatility this year. How do folks stay focused on their long-term goals?

Read about topics from this episode.

Subscribe to Morningstar’s DividendInvestor newsletter.

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