I’m a strong believer that all Canadians should hold a handful of U.S. stocks in their portfolio. This is because international stocks provide Canadians with an opportunity to seek additional avenues for growth. If desired, adding geographic diversification to your portfolio could also provide stability to your portfolio. With that in mind, here are three U.S. stocks that I think could be no-brainer additions to your portfolio.
Start with the biggest company in the world
Apple (NASDAQ:AAPL) is the first U.S. stock that Canadians should consider buying today. With a market cap of US$2.52 trillion, Apple is the largest company in the world. It’s estimated that more than one billion people use iPhones today. With yesterday’s Apple Event unveiling new and exciting products, it’s reasonable to think that Apple’s dominance of the consumer tech industry could continue for many more years.
In the third quarter (Q3) 2022, Apple reported US$83 billion of revenue. Further, the company is sitting on a mountain of cash totaling US$35 billion. With such a healthy balance sheet, I would be confident holding Apple shares in my portfolio for the foreseeable future. The company should be in a good position to continue funding innovation. With that cash, Apple could also continue buying back shares and giving investors value that way.
A company with an important business
Mastercard (NYSE:MA) is the next stock that Canadians should add to their portfolios. Like Apple, Mastercard is a very recognizable name. It’s one of the three major credit card companies. In March 2021, it’s reported that there were 249 million Mastercard credit cards in circulation in the United States. Furthermore, 725 million cards are believed to be in use in the rest of the world.
In Q2 2022, Mastercard reported US$5.5 billion in revenue. That represents a year-over-year (YoY) increase of 21%. That growth in its revenue was driven by an increase in gross dollar volume, processed by Mastercard. In Q2 2022, the company reported that it processed US$1.91 trillion through its network. That represents a YoY increase of 14%.
Few companies are as influential as this one
Finally, Canadians should consider buying shares of Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL), otherwise known as Google. There are very few companies that are as influential as Alphabet. This company offers many services and products including its Google search engine, Chrome, Google Cloud, Android OS, Google Earth, YouTube, and many others.
In Q2 2022, Alphabet reported an astonishing revenue of US$69.69 billion. That represents a modest YoY increase of 13%. Like Apple, Alphabet is sitting on a mountain of cash, which totals US$17.9 billion. With that amount of cash on hand, Alphabet should be in a good position to weather economic downturns. It should also be able to continue innovating and producing new products.
The Canadian stock market can provide investors with exceptional companies. However, by investing in international stocks, Canadians give themselves the opportunity to seek additional growth. Companies like Apple, Mastercard, and Alphabet have very easy businesses to understand. These companies are all also well established in their respective industries. With that said, I believe they would all classify as no-brainer additions to a Canadian’s stock portfolio.