Today we will consider the issue of investing in Russian shares in dollar terms. Is it possible to invest in Russian shares in dollars, is it worth receiving dividends on Russian shares in dollars, and is there any upside to this?
Let me remind you that I am quite skeptical of the Russian stock market - due to the mass of risks from state regulation to the instability of the economy, but I also have experience in developing client strategies for the Russian stock market. For example, if the client is unable to perform due to if the client has chosen to invest in US stocks (and does not wish to use workarounds), or if such is his specific wish.
1) Shares of the Russian Federation can be bought for dollars in foreign markets. For example, on the London stock exchange. The same IB gives access to both the Moscow stock exchange and the London stock exchange. For example, LUKOIL shares are traded in London at $ 106.15, and in Moscow at 6490 rubles - we use the exchange rate and see that the price is almost the same. Some discrepancies in the price can be explained by the delay in displaying data.
2) I do not recommend buying shares of the Russian Federation in dollars, because I do not see much point in doing so. Yes, it seems that you have fixed the price of a stock in hard currency, but this is not the case at all. For example, the same Sberbank in January 2015 in comparison with the local peak in 2013 sank in dollar terms by almost 4 times, while in ruble terms the drawdown was about 40% - affected by the devaluation of the ruble.
The "internal value" of Russian shares is rouble-denominated. Therefore, the devaluation of the ruble leads to a decrease in the dollar value of shares, even if there is an increase in rubles. The price of the same Sberbank has changed slightly in dollars since 2012 - just because of the devaluation.
3) the Dividend yield in dollars is good, if you do not take into account the same devaluation. Dividends Sberbank's 2014 earnings were 3.2 rubles per share, or 9.4 cents in us dollar terms. Then there was a devaluation, then a reduction in dividends in 2015 by as much as 86%. And now in 2017, the dividends are already 6 rubles, but in dollar terms, as of the payment date, this is only about 10 cents. It is difficult to call this a significant growth.
So Yes, you can buy shares of the Russian Federation for dollars. Yes, you can see the dividends in dollars. But remember - this investment directly depends on the exchange rate of the ruble to the dollar. And a decrease in this rate will immediately affect the dollar value of shares and the amount of dividends.
Good luck in the future investments!