As a Canadian investor, we have the opportunity to add many outstanding domestic companies to our portfolios. However, itâs 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 theyâre willing to take on when it comes to international holdings.Â For those that arenât 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 youâre 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 Gambleâs 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 companyâs 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. Thatâs because even though this company trades in the U.S., itâs 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 Limitedâs smallest business segment. However, with a 53.4% year-over-year increase in revenue, as reported in June, itâs also Sea Limitedâs 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.
Before you consider The Procter & Gamble Company, you’ll want to hear this.
Our market-beating analyst team just revealed what they believe are the 5 best stocks for investors to buy in October 2023… and The Procter & Gamble Company wasn’t on the list.
The online investing service they’ve run for nearly a decade, Motley Fool Stock Advisor Canada, is beating the TSX by 25 percentage points. And right now, they think there are 5 stocks that are better buys.
See the 5 Stocks
* Returns as of 10/10/23
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