Canadians: 3 Great Foreign Companies to Invest in Right Now

Are you trying to diversify your portfolio? Here are three great foreign companies for Canadians to invest in right now!

| More on:
TIMER SAYING TIME FOR ACTION

Image source: Getty Images

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.

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, MercadoLibre, and Sea Limited. The Motley Fool recommends Apple, MercadoLibre, Sea Limited, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.

More on Investing

A cannabis plant grows.
Cannabis Stocks

Canopy Growth Stock Is Rising But I’m Worried About This One Thing

Canopy Growth stock is soaring as the legalization effort makes real progress in both Germany and the United States.

Read more »

young woman celebrating a victory while working with mobile phone in the office
Investing

3 Roaring Stocks to Hold for the Next 20 Years

These top TSX stocks are excellent long-term buys, given their multi-year growth potential and solid underlying businesses.

Read more »

Two seniors float in a pool.
Dividend Stocks

TFSA: How to Earn $1,890 in Annual Tax-Free Income

Plunk these investments into your TFSA to earn passive income and avoid the taxman.

Read more »

grow dividends
Investing

Here’s My Top 3 TSX Stocks to Buy Right Now

Even though the TSX has been rising, there are still some good bargains out there. Here are three top compounding…

Read more »

Target. Stand out from the crowd
Investing

Prediction: This Canadian Growth Stock Could Double by 2030

Alimentation Couche-Tard (TSX:ATD) is a top growth stock that could do well over the next six or so years.

Read more »

Businessman holding AI cloud
Tech Stocks

Could Investing $20,000 in Nvidia Make You a Millionaire?

Nvidia stock has made investors millionaires in the last 10 years. Is it too late to invest to become a…

Read more »

Engineers walk through a facility.
Dividend Stocks

1 TSX Stock I Wouldn’t Touch With a 10-Foot Pole

AtkinsRéalis (TSX:ATRL) is one TSX stock I'd never invest in.

Read more »

money cash dividends
Stocks for Beginners

Have $500? 3 Absurdly Cheap Stocks Long-Term Investors Should Buy Right Now

If you're looking for cheap stocks, these three have a huge future ahead of them, all while costing far less…

Read more »