There are many different Canadian companies across several sectors that would make excellent additions to your portfolio. However, by limiting yourself to companies that operate in Canada, investors could be leaving a lot of additional benefits on the table. For example, by investing in stocks that trade in the U.S., Canadians could gain exposure to stocks that operate in industries not present in Canada. That could result in more gains over time. Here are two U.S. stocks Iâm never selling.
This company is a leader in three emerging industries
Sea Limited (NYSE: SE) is the first stock that Iâll be covering in this article. Although it qualifies here by trading on an American stock exchange, Sea Limited is actually a Singapore-based company. It was previously known as a leader in southeast Asia before starting its staggering worldwide growth.
Sea Limited operates in three important and emerging industries. Initially, it was established as a digital entertainment company. Through Garena, Sea Limited develops and publishes mobile games. Its most notable game is Free Fire, which is the most downloaded mobile game worldwide. Today, Sea Limitedâs e-commerce segment may be the most crucial part of its business. Generating US$1.7 billion in quarterly revenue, Shopee saw a 52% year-over-year (YoY) increase.
The final business segment that investors should take note of is SeaMoney. This is the digital payment arm of Sea Limitedâs business. Through SeaMoney, consumers get access to a digital wallet and can complete mobile transactions. In the second quarter (Q2) of 2022, SeaMoney saw a 214% YoY increase in revenue. As consumers continue to shift towards online and mobile forms of commerce, I expect SeaMoney to continue growing. Itâll certainly be an exciting aspect of Sea Limitedâs business to watch.
One of the biggest companies in the world
Whereas Sea Limited may not be a stock that everyone is familiar with, Microsoft (NASDAQ: MSFT) should be. Itâs estimated that nearly 75% of desktop and laptops around the world use Windows operating systems. To put Microsoftâs outstanding lead in that business segment into perspective, its next largest competitor holds a mere 15% share of that market.
Microsoft is also a notable stock to consider because of the plethora of products it offers. Some examples include Azure, Microsoft Office, OneDrive, and Xbox. By spreading its business across many different industries, Microsoft provides itself with the opportunity to gain exposure to consumers in different mediums.
In Q4 2022, Microsoft reported US$51.9 billion in revenue. That represents a YoY increase of 12%. Investors should note that the companyâs cloud services continue to drive that largest portion of its growth. In Q4 2022, Microsoftâs server and cloud revenue saw a YoY increase of 22%. For investors that may be interested in Microsoft from a dividend point of view, this stock also has a lot to offer. It has grown its distribution at a CAGR of 9% over the past four years.
