As far as developed economies go, the Canadian market remains one of the best globally to invest in. That said, the world is a very big place, and with 99.5% of the globe population outside of Canada’s borders, investors have reason to seek international exposure in their portfolios.
Buys for international exposure: Alimentation Couche-Tard
There are a number of reasons why investors look at Couche-Tard as a great investment. There’s the growth profile of this gas station and convenience store chain. There’s an excellent valuation and a small but meaningful dividend yield as well.
However, one of the key factors I think investors should focus on with this company is Couche-Tard’s international reach. Indeed, as far as international exposure goes, Couche-Tard is a juggernaut. The company operates 15,000 locations globally. Additionally, Couche-Tard has a presence in countries including the U.S., Canada, Mexico, Sweden, Denmark, Ireland, Norway, Estonia, Poland, Russia, Japan, Latvia, and more.
Such diversified international exposure is hard to come by. However, Couche-Tard has carved out a strong position in many of its core markets, focusing on acquiring smaller chains in these regions. I see tremendous growth potential with this strategy long term and view Couche-Tard as a great long-term holding for investors seeking international exposure.
In the banking sector, Scotiabank is a great pick for investors looking at the international exposure angle. Indeed, Scotiabank’s presence in emerging markets, particularly in Latin America, is enticing. This is for a few reasons.
First, the growth profile of emerging market countries, such as those in Latin America, is very attractive. These are economies with much to gain from the global reopening and are still in high-growth phases of development. As these economies grow, Scotiabank stands to benefit from this higher international growth relative to what the Canadian economy is expected to produce.
Additionally, investors concerned about a potential bubble brewing in the Canadian real estate market may like to diversify some exposure away from Canada. Indeed, in this regard, Scotiabank offers a more diverse and intriguing business model compared to its peers.
On top of this, Scotiabank stock yields an attractive 4.4% at the time of writing. That’s hard to find with a large-cap stock these days.
Indeed, both Scotiabank and Couche-Tard present intriguing buy cases right now. Both stocks are relatively attractively valued. Accordingly, long-term investors may want to consider both these stocks right now.