4 No-Brainer U.S. Stocks for Canadian Investors

These U.S. stocks should be picked up immediately in the rebounding economy, and held onto for significant gains in the next few years.

| More on:
Path to retirement

Image source: Getty Images

Canadian investors can use their Tax-Free Savings Account (TFSA) to make investments anywhere in the world. And they should. The more diversified your portfolio the better, and that includes on a global scale. But did you know that means you can also invest in U.S. stocks?

Not only should you be finding stocks that offer a diversified, global portfolio, but you also can choose U.S. stocks as well. Not every U.S. company is on the TSX, so make sure you’re not missing out on opportunities by investing only in Canada!

With that in mind, here are four no-brainer U.S. stocks Canadian investors should consider.

United States Steel

Among U.S. stocks, United States Steel (NYSE:X) is a strong choice in this rebounding economy. Steel is a good option for those seeking the safety of commodities. And with a US$5.7-billion market capitalization, this company is a stellar option.

The company offers Canadian investors access to high-strength steel as well. This is what’s used by automakers, construction, energy and other industries that need lighter-weight vehicles. Furthermore, it offers diversification by operating not only in the U.S., but also in Europe.

Yet the company is a steal (pardon the pun) among U.S. stocks, trading at just 1.4 times earnings as of writing. Shares are up 1.9% year to date, and 39% in the last month.

Annaly Capital Management

Asset managers are another alternative for Canadian investors seeking exposure to U.S. stocks. And one of the best out there is Annaly Capital Management (NYSE:NLY). The company operates as a real estate investment trust, seeking to deliver attractive returns from its investments in the mortgage finance sector, while also providing cash through investing in real estate.

Quarter after quarter the company has blown past earnings estimates, and recently announced a public offering of 100 million shares of common stock. And yet the company remains a bargain among U.S. stocks, trading at just 2.7 times earnings, offering a whopping 12.9% dividend yield!

Shares of the company are up 12% in the last month, and down 8% year to date.


Now, if you’re looking for U.S. stocks that offer substantial growth, Hexcel (NYSE:HXL) is a great option. This industrial company manufacturers materials used in aerospace, industrial, and defense operations. These are long-term contracts that aren’t going to simply disappear even with a market downturn. So you get a defensive stock as well.

Hexcel has been one of the top growers not only in the last year, but in the last few decades. Management remains consistent on performance, even in the face of inflation. During the company’s latest earnings report, Hexcel reported adjusted diluted earnings per share of US$0.33, up from US$0.08 the year before. Sales increased as well from US$320 million to US$393 million, allowing the company to reaffirm its 2022 guidance.

Now it’s not cheap, trading at 59.5 times earnings among U.S. stocks. However, it has proven that it can perform over the years. Shares are up 21% in the last month, 25% year to date, and a whopping 1,745% in the last two decades.


Frankly, Walt Disney (NYSE:DIS) is one of those companies that doesn’t seem like it will ever disappear. The company rolls with the shifting environment, remaining one of the top entertainment choices for consumers and investors alike. Today, the company offers one of the best streaming services, new content, and the rights to the biggest titles in movies and television.

These attractive offerings are reflected in its share price. While Disney trades at a high 80.9 times earnings, it’s still working its way back up to pre-fall prices. Shares are up 35% in the last month alone, but still down 20% year to date. DIS has the panache of a tech stock after all. But given that it has been on the market so long, and shares are still down, I’d recommend long-term Canadian investors pick up Disney for the long haul alongside other U.S. stocks.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Hexcel and Walt Disney.

More on Stocks for Beginners

money cash dividends
Stocks for Beginners

Got $1,000 to Invest in Stocks? Put It in This Index Fund

This low-cost beginner-friendly ETF is a great way to invest $1,000.

Read more »

money cash dividends
Dividend Stocks

Have $500? 2 Absurdly Cheap Stocks Long-Term Investors Should Buy Right Now

Want some absurdly cheap stocks for your portfolio? Here are two options trading at a huge discount right now.

Read more »

Happy Retirement” on a road
Dividend Stocks

Get Out of Debt Once and for All, And Turn It Into $12,592.38 in Your TFSA

By astutely managing your budget and paying down debt, you can free up more money to invest in your retirement.

Read more »

TFSA and coins
Stocks for Beginners

How to Invest Your $7,000 TFSA Contribution in 2024

Here's how I would personally invest a $7,000 TFSA contribution.

Read more »

Man holding magnifying glass over a document
Stocks for Beginners

Watching This 1 Key Metric Could Help You Beat the Stock Market

This data marker can tell you exactly what you can expect from the future of companies, and whether that's a…

Read more »

gold stocks gold mining
Stocks for Beginners

Agnico Eagle Mines Stock Soars Higher on 10.5% Increase in Gold Reserves

AEM stock (TSX:AEM) posted strong earnings, bringing the share price back up after falling 15% so far in 2024. And…

Read more »

data analytics, chart and graph icons with female hands typing on laptop in background
Tech Stocks

Topicus Stock Jumps 16% on Killer Full-Year Earnings

Topicus (TSXV:TOI) reported strong earnings after revenues surged higher, and with a volatile market this is exactly what you want…

Read more »

Economic Turbulence
Dividend Stocks

Intact Financial Climbs to All-Time High on Buybacks, With an 11% Dividend Increase

Intact stock (TSX:IFC) rose after the company reported a difficult year, but managed to increase buybacks and its dividend.

Read more »