Verizon Communications Inc. Canadian Depositary Receipt (CDR) (VZ)

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https://www.verizon.com

Verizon Communications Inc. Canadian Depositary Receipt (CDR) is a financial instrument that provides Canadian investors with exposure to Verizon Communications Inc., a leading U.S. telecommunications company, through a Canadian-listed security. This CDR represents fractional ownership of Verizon's underlying shares via a variable CDR ratio, adjusted daily to deliver a built-in notional currency hedge against USD/CAD fluctuations, ensuring returns primarily reflect the company's performance rather than exchange rate volatility. Priced in Canadian dollars and typically starting around $20 per share, it enables accessible entry to high-value U.S. stocks without currency conversion costs or foreign exchange hassles. Investors retain proportional dividend rights, paid in CAD—with Verizon's forward yield noted at 6.82%—and potential voting rights akin to direct ownership. Issued and managed by institutions like CIBC, it trades like regular Canadian stocks on exchanges such as NEO or TSX, supporting fractional investing and registered accounts while simplifying global diversification in telecom services. Though hedging incurs an implicit annual cost of about 0.50-0.60%, it minimizes FX risk for those prioritizing stability.