Although the Canadian stock market offers investors a plethora of outstanding companies to choose from, it’s imperative that Canadians remember to diversify their portfolios. This includes geographic diversification, as it adds an extra layer of coverage should Canada’s economy take a major hit. In this article, I’ll discuss three great foreign companies to invest in right now.
My favourite international company
Of all the international stocks I’ve ever invested in, none have interested me as much as Sea Limited (NYSE: SE). This is a Singapore-based company that operates three distinct business segments: Garena, Shopee, and SeaMoney. Those represent Sea Limited’s electronic entertainment, ecommerce, and digital banking services, respectively.
In its third-quarter (Q3) 2023 earnings presentation, Sea Limited reported US$3.3 billion in revenue. That represents a modest 5% increase year over year. Despite such a small increase in revenue, Sea Limited’s total gross profit managed to increase by more than 17% over the same period. That suggests that the company is doing a good job of increasing its profitability.
Sea Limited’s fastest-growing business segment is SeaMoney. In the same earnings presentation, the company reported a 36.5% year-over-year increase in revenue. Although this is still Sea Limited’s smallest business segment, it could be an important one to watch in the future.
A company you should be familiar with
Microsoft (NASDAQ: MSFT) is the next great foreign company that Canadians should consider investing in right now. This is a company that needs very little introduction. As soon as anyone says the name Microsoft, it should be recognized for its Windows platform. That comes with good reason. As of December 2023, Microsoft held a 73% share of the operating system market. The company offers so many other products and services like Office, Xbox, and Azure, among others.
One of the largest companies in the world, Microsoft’s market cap as of this writing is about US$2.9 trillion. At that size, the law of large numbers states that Microsoft should experience a slower growth rate. However, over the past year, this stock saw a gain of about 56%. That greatly outpaces the S&P 500, which gained about 19% over the past year. A bona fide blue-chip stock, Microsoft belongs in every Canadian’s portfolio.
Take interest in this reliable company
Finally, investors should consider adding shares of Procter and Gamble (NYSE: PG) to their portfolios today. Although you may not recognize this company’s name, you should be very familiar with many of its products. Procter and Gamble is responsible for many popular consumer products such as Pampers, Tide, Charmin, Gillette, Old Spice, Crest, and many others. In total, Procter and Gamble’s brand portfolio features about 40 names.
An outstanding dividend payer, Procter and Gamble boasts one of the longest dividend-growth streaks in North America. Entering 2024, the company has managed to increase its dividend distribution in each of the past 66 years. Only one company in the United States currently maintains a longer dividend growth streak. If you’re looking for a reliable foreign stock to add to your portfolio, consider Procter and Gamble stock. It has increased by about 64% over the past five years (dividends excluded).
