These U.S. Stocks Are No-Brainer Additions to Your Portfolio

There are many excellent companies that trade on the TSX. However, Canadians should remember that diversification is important to have in your portfolio. This doesn’t just refer to investing in companies that operate in different industries. It also implies that investors should invest in companies that operate in different countries. This concept, known as geographic diversification, could help investors add stability to their portfolios. In this article, I’ll discuss three U.S. stocks that could be no-brainer additions to your portfolio.

One of the most recognized companies in the world

Apple (NASADAQ:AAPL) is the first U.S. stock that Canadians should add to their portfolios today. This is one of the most recognizable companies in the world. It’s estimated that more than one billion iPhones are in use today. Apple has also done well to expand its product line. Today, it offers a number of different consumer products, including the Apple Watch and MacBook. The company also offers audio and video streaming services that are used around the world.

In the third quarter (Q3) of 2022, Apple reported US$83 billion in revenue. That represents a year-over-year increase of 2%. Although those growth numbers are modest, investors could expect greater results in this quarter following the release of the iPhone 14. Apple’s grasp on the global consumer tech industry is unmatched. With a mountain of cash on its balance sheet, I would remain confident holding this stock in my portfolio for years.

A well-known beverage company

Coca-Cola (NYSE:KO) is the second U.S. stock that should feature in Canadians’ portfolios. This company is one of the largest beverage producers in the world. Some of its products include Coca-Cola, Dasani, Fanta, and Minute Maid. In addition, it’s estimated that Coca-Cola holds a 47% share of the American soft drink market. With more than 29 billion units being sold annually, there’s no denying that Coca-Cola is a major player that’s here to stay.

In 2021, Coca-Cola reported US$38.7 billion in net revenue. Of that, US$11.1 billion was retained as income. With numbers as strong as that, Coca-Cola makes a solid case to be added to your portfolio today. As an added incentive, this company also offers investors an attractive dividend. Coca-Cola’s forward dividend yield is 2.91%. This dividend has also grown in each of the past 60 years. If Coca-Cola can keep that up, then investors could see an even more attractive yield on cost in the future.

This company runs the payment industry

Finally, I believe Canadians should consider buying shares of Visa (NYSE:V). This is the largest credit card company in the world. In terms of purchase volume that passes through each credit card company’s respective network, 52% can be attributed to Visa. In 2021, it was reported that US$2,405 billion of purchase volume passed through the company’s network. Visa also holds a 72% share of the debit card market (in terms of purchase volume).

As online and mobile shopping continue to rise in importance, companies like Visa could continue to grow. With a 19% year-over-year increase in revenue being reported in Q3 2022, Visa is certainly on the right track.

The post These U.S. Stocks Are No-Brainer Additions to Your Portfolio appeared first on The Motley Fool Canada.

Should You Invest $1,000 In Apple?

Before you consider Apple, 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 September 2022 … and Apple 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 21 percentage points. And right now, they think there are 5 stocks that are better buys.

See the 5 Stocks
* Returns as of 9/14/22

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];[property] = defaultValue;

setButtonColorDefaults(“#5FA85D”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43A24A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);

More reading

Fool contributor Jed Lloren has positions in Apple. The Motley Fool recommends Apple and Visa.