Please stay tuned for important disclosure information at the conclusion of this episode.

Welcome to Investing Insights. I'm your host, Ivana Hampton. The revenue of U.S.-based

dividend stocks isn't necessarily made in America. A portfolio of popular dividend-paying stocks is likely

exposed to currency or geopolitical risk, and that's due to international revenue exposure.

Some U.S.-based companies earn 50% or more of their money outside of the country.

A recent analysis of 35 dividend-paying stocks in Morningstar's Dividend Investor newsletter found

several well-known names generate sizable revenue overseas.

So how should investors balance U.S. versus non-U.S. equity exposure?

MorningStars Dividend Investor newsletter editor, David Harrell,

explains what investors should know. Thanks for being here, David. Great to be back.

Well, 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?

Sure. This is an exercise I first did back in 2021, I believe. I wanted to revisit it.

As you know, there's not really a broad consensus on how much exposure U.S. equity investors

should have to international equities. Now, if you were trying to create

sort of a market neutral portfolio, you'd have a pretty large exposure more than 30%. I believe

our colleague Amy Arnott recently had a piece, and she pegged the number at 37.7% based on current market capitalizations of U.S. versus non-U.S. stocks.

But I would say 37% is probably a higher exposure than almost every individual investor in the United States has.

On the other hand, you have some very well-respected folks like the late Jack

Bogle, founder of Vanguard, or Berkshire Hathaway CEO Warren Buffett, or at least CEO through

the end of this year, have long made the case that U.S. investors don't need direct exposure

to international stocks.

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