These U.S. Stocks Are No-Brainer Additions to Your Portfolio

Are you looking for international stocks to add to your portfolio? Here are three U.S. stocks that are no-brainers!

| More on:
young woman celebrating a victory while working with mobile phone in the office

Image source: Getty Images

There are many excellent companies that trade on the TSX. However, Canadians should remember that diversification is important to have in your portfolio. This doesn’t just refer to investing in companies that operate in different industries. It also implies that investors should invest in companies that operate in different countries. This concept, known as geographic diversification, could help investors add stability to their portfolios. In this article, I’ll discuss three U.S. stocks that could be no-brainer additions to your portfolio.

One of the most recognized companies in the world

Apple (NASADAQ:AAPL) is the first U.S. stock that Canadians should add to their portfolios today. This is one of the most recognizable companies in the world. It’s estimated that more than one billion iPhones are in use today. Apple has also done well to expand its product line. Today, it offers a number of different consumer products, including the Apple Watch and MacBook. The company also offers audio and video streaming services that are used around the world.

In the third quarter (Q3) of 2022, Apple reported US$83 billion in revenue. That represents a year-over-year increase of 2%. Although those growth numbers are modest, investors could expect greater results in this quarter following the release of the iPhone 14. Apple’s grasp on the global consumer tech industry is unmatched. With a mountain of cash on its balance sheet, I would remain confident holding this stock in my portfolio for years.

A well-known beverage company

Coca-Cola (NYSE:KO) is the second U.S. stock that should feature in Canadians’ portfolios. This company is one of the largest beverage producers in the world. Some of its products include Coca-Cola, Dasani, Fanta, and Minute Maid. In addition, it’s estimated that Coca-Cola holds a 47% share of the American soft drink market. With more than 29 billion units being sold annually, there’s no denying that Coca-Cola is a major player that’s here to stay.

In 2021, Coca-Cola reported US$38.7 billion in net revenue. Of that, US$11.1 billion was retained as income. With numbers as strong as that, Coca-Cola makes a solid case to be added to your portfolio today. As an added incentive, this company also offers investors an attractive dividend. Coca-Cola’s forward dividend yield is 2.91%. This dividend has also grown in each of the past 60 years. If Coca-Cola can keep that up, then investors could see an even more attractive yield on cost in the future.

This company runs the payment industry

Finally, I believe Canadians should consider buying shares of Visa (NYSE:V). This is the largest credit card company in the world. In terms of purchase volume that passes through each credit card company’s respective network, 52% can be attributed to Visa. In 2021, it was reported that US$2,405 billion of purchase volume passed through the company’s network. Visa also holds a 72% share of the debit card market (in terms of purchase volume).

As online and mobile shopping continue to rise in importance, companies like Visa could continue to grow. With a 19% year-over-year increase in revenue being reported in Q3 2022, Visa is certainly on the right track.

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 Jed Lloren has positions in Apple. The Motley Fool recommends Apple and Visa.

More on Investing

food restaurants
Dividend Stocks

Better Stock to Buy Now: Tim Hortons or Starbucks?

Starbucks and Restaurant Brands International are two blue-chip dividend stocks that trade at a discount to consensus price targets.

Read more »

Diggers and trucks in a coal mine
Metals and Mining Stocks

1 Canadian Mining Stock Worth a Long-Term Investment

Cameco (TSX:CCO) stock could be a great long-term investment for Canadian growth seekers.

Read more »

Pot stocks are a riskier investment

Could Investing $10,000 in Aurora Cannabis Stock Make You a Millionaire?

Let's dive into whether Aurora Cannabis (TSX:ACB) could be a potential millionaire-maker stock, or a dud, over the long term.

Read more »

stock analysis
Energy Stocks

Is Enbridge Stock a Good Buy in May 2024?

Boasting high-yielding dividends and a stable underlying business, Enbridge (TSX:ENB) might be a great buy for your self-directed investment portfolio…

Read more »

Hand arranging wood block stacking as step stair with arrow up.
Dividend Stocks

1 Growth Stock With Legit Potential to Outperform the Market

Identifying the stocks that have outperformed the market (in the past) is relatively easy, but selecting the ones that will…

Read more »

healthcare pharma
Tech Stocks

Well Health Stock Is Up 7% After Earnings: What Investors Need to Know

Well Health is benefiting from strong demand as it digitizes healthcare and strives to improve patient outcomes.

Read more »

money cash dividends
Dividend Stocks

Passive Income: The Investment Needed to Yield $1,000 Per Annum

Do you want to generate a juicy passive-income stream? Here's a trio of stocks that can generate a yield of…

Read more »

Dividend Stocks

Here’s the Average TFSA Balance in 2024

The average TFSA balance has steadily risen over the last six years and surpassed $41,510 in 2023. Will the TFSA…

Read more »