Canadians are very fortunate to have the opportunity to invest in excellent domestic stocks. However, it’s very important to consider investing in companies that operate internationally as well. This could give Canadians the chance to seek growth opportunities that aren’t present in Canada. For example, an investor could have taken advantage of Apple, when it was on the rise, and generated massive returns.
In this article, I’ll discuss three great foreign companies for Canadians to invest in right now.
This three-headed beast should be in your portfolio
Sea Limited (NYSE:SE) is the first foreign stock that Canadians should consider investing in right now. This company operates out of Singapore, but its business has expanded into many markets around the world. There are three distinct business segments that drive Sea Limited. These are its digital entertainment, e-commerce, and digital payments businesses. Of those, Shopee, Sea Limited’s e-commerce arm, is what could attract investors the most.
In the second quarter (Q2) of 2022, Shopee reported US$1.7 billion in revenue. That represents a year-over-year (YoY) increase of 51%. Considering that consumer spending has fallen a lot this year, Shopee’s ability to increase its revenue is very impressive. In addition to its strong ecommerce performance, Sea Limited continues to show growth elsewhere. SeaMoney, its digital payments business, reported a YoY increase in revenue of 214%. Sea Limited is a very interesting company that could pay off in spades by the end of the decade.
A massive e-commerce company
Sticking with the e-commerce theme, investors should consider buying shares of MercadoLibre (NASDAQ:MELI) today. Although this company only operates within the e-commerce industry compared to Sea Limited, which operates in many different areas, MercadoLibre offers a very comprehensive solution. It operates a marketplace and provides logistics, payments, and credit services.
In Q2 2022, MercadoLibre reported US$8.6 billion in revenue. That represents a YoY increase of 26%. That growth was driven by a total purchase volume of $30.2 billion (YoY increase of 84%). Although these numbers are all very impressive, there’s a figure that investors should focus on more. MercadoLibre reported that its operating margin has expanded to 9.6%, resulting in US$250 million in income for the quarter. This suggests that MercadoLibre is becoming more efficient as it scales. That’s very welcoming for growth investors.
One of the biggest companies you don’t know about
Finally, investors should consider investing in Taiwan Semiconductor Manufacturing Company (NYSE:TSM). For those that aren’t familiar, this is one of the largest semiconductor companies in the world. It develops parts used by many of the world’s most well-known brands, including Apple.
What initially attracted me to this company is its solid financial performance. From 2017 to 2021, Taiwan Semiconductor’s revenue grew each year. Over that period, the company’s revenue exhibited a compound annual growth rate of more than 10%. That’s very impressive for a company of this size.
That strong financial performance has also allowed Taiwan Semiconductor to become a reliable dividend stock. In fact, this company has paid investors a dividend each year since 1999. So, if you’re in it for growth or dividends, Taiwan Semiconductor has something for everyone.
