Beyond SPY Stock: Top U.S. Picks for Canadian Investors

As a Canadian investor, we have the opportunity to add many outstanding domestic companies to our portfolios. However, it’s crucial that we diversify into different markets. This is because if the Canadian economy were to ever take a massive hit (e.g., enter a major recession), our holdings in other regions might be able to mitigate some of that. Fortunately, the American stock market is very accessible to Canadians.

For many Canadians, SPDR S&P 500 ETF Trust (NYSEMKT:SPY) is the most exposure they’re willing to take on when it comes to international holdings. For those that aren’t familiar, this is an exchange-traded fund that tracks the performance of the S&P 500, an index which includes 500 of the largest American companies. Generally, this is a great option, if you’re hoping for a more conservative way to venture into the American stock market.

However, there are so many great companies in the United States that Canadians should be willing to invest in today. In this article, I’ll discuss two stocks that you should consider buying today. These two picks will appeal to dividend and growth investors, respectively.

One of the biggest companies in the world

Procter and Gamble (NYSE:PG) was the very first stock that I ever bought. This is a massive company, and you likely encounter its products more than you think. Procter and Gamble has a foothold in many different areas of the consumer market. Some of their major brands include Pampers, Tide, Charmin, Tampax, Gillette, Old Spice, Febreze, and Crest. Altogether, Procter and Gamble’s portfolio of products contains about 40 of the most well-known brands in the world.

Procter and Gamble is one of the most impressive dividend stocks in the world. This company has managed to increase its dividend in each of the past 67 years. Only one American company holds a dividend-growth streak longer than Procter and Gamble. The company’s forward dividend yield stands at 2.51%, which gives investors great value for their money.

One of my favourite stocks

Sea Limited (NYSE:SE) is another great U.S.-listed stock that Canadians should consider buying today. Note that I said U.S.-listed and not American. That’s because even though this company trades in the U.S., it’s actually based in Singapore. That means investing in this company could give your portfolio even more geographic exposure.

Sea Limited operates in three distinct business segments. This includes Garena, Shopee, and SeaMoney which represent its digital entertainment, ecommerce, and digital banking services, respectively. Of those three business segments, Shopee appears to be the most intriguing from an investment perspective. In its second quarter of 2023 earnings presentation, Sea Limited reported a 20.6% year-over-year increase in its ecommerce revenue.

With the e-commerce industry continuing to grow, I believe Shopee could continue to push Sea Limited to new heights moving forward. It should be noted that SeaMoney remains Sea Limited’s smallest business segment. However, with a 53.4% year-over-year increase in revenue, as reported in June, it’s also Sea Limited’s fastest-growing business segment. Investors should keep an eye on this and see how things shape up in the future. It could be a massive catalyst for Sea Limited stock.

The post Beyond SPY Stock: Top U.S. Picks for Canadian Investors appeared first on The Motley Fool Canada.

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More reading

• Canadian Investors: Don’t Put All Your Eggs in the SPY Stock Basket
• 3 Safe Stocks for Branching Out of the TSX

Fool contributor Jed Lloren has positions in Sea Limited. The Motley Fool recommends Sea Limited. The Motley Fool has a disclosure policy.