The U.S. Stocks Every Canadian Investor Needs to Know About

Do you consider yourself a savvy investor? Do you know about these three stocks that trade in the U.S.?

| More on:
woman analyze data

Image source: Getty Images

Although the Canadian stock market offers investors a plethora of outstanding companies, it’s essential that Canadians learn how to invest in international stocks. This is because international stocks could provide different opportunities to investors by exposing them to different kinds of companies and industries. In addition, investing internationally provides your portfolio with added diversification and, thus, protection should the Canadian economy suffer in some way.

In this article, I’ll discuss three stocks that trade in the U.S. that every Canadian investor should know about.

This is my favourite stock

Some investors will say that you shouldn’t pick favourites. These investors likely treat every stock in their portfolio as a business decision and not something that you should become attached to. However, I believe that there isn’t anything wrong with being more attached to one or two companies in your portfolio if you think the potential return there is much larger than in the other stocks you hold.

For example, I strongly believe that Sea Limited (NYSE:SE) offers investors a tremendous growth opportunity. This company operates in the e-sports, e-commerce, and digital banking industries. On their own, each of those industries is very exciting. However, the fact that Sea Limited operates in all three makes it one of the most attractive companies I’ve seen in a long time. In its most recent earnings presentation, the company reported US$3 billion in its first-quarter (Q1) revenue. Sea Limited stock has gained 245% over the past five years.

One of the biggest companies in the world

When investing internationally, it’s important that you stick to companies that operate businesses you’re capable of understanding. That’s why Microsoft (NASDAQ:MSFT) is another U.S. stock that Canadians should consider buying today. This is a name that nearly every person on Earth should be familiar with. The company holds a very formidable 68% share of the global desktop operating systems market. Its next closest competitor holds a 21% share.

Microsoft stock has been very impressive in recent years. In fact, over the past five years, the stock has gained about 220%. It should be noted that despite being one of the largest companies in the world by market cap, Microsoft is not immune to macro conditions that affect other stocks around the world. From December 2021 to November 2022, the stock fell more than 35%. However, it has since recovered all of those losses, proving that the stock remains as resilient as ever. As of this writing, Microsoft trades at all-time highs.

Have you considered this behemoth stock?

Finally, Canadians should consider investing in Mastercard (NYSE:MA). This is one of the largest credit card providers in the world. In 2020, it was estimated that nearly 40% of adults in the U.S. held at least one card provided by Mastercard.

A very impressive performer, Mastercard stock has gained nearly 90% over the past five years. That provides investors with very steady returns year in and year out. As consumers continue to shift towards e-commerce and digital payments, I believe Mastercard could continue to thrive. As a result, Mastercard stock could continue to grow steadily over the coming years.

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 Microsoft and Sea Limited. The Motley Fool recommends Mastercard, Microsoft, and Sea Limited. The Motley Fool has a disclosure policy.

More on Investing

A data center engineer works on a laptop at a server farm.
Tech Stocks

3 No-Brainer Data Centre Stocks to Buy With $500 Right Now

Data centres are going to be a huge growth opportunity in the next decade. And these are the top buys.

Read more »

Paper Canadian currency of various denominations
Bank Stocks

1 Magnificent Canadian Dividend Stock Down 28% to Buy and Hold for Decades

This top Canadian dividend stock is underperforming its large peers this year, but a turnaround could be on the horizon.

Read more »

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Dividend Stocks

Where to Invest Your $7,000 TFSA Contribution

The TFSA is attractive for investors who want to generate tax-free passive income.

Read more »

The TFSA is a powerful savings vehicle for Canadians who are saving for retirement.
Dividend Stocks

TFSA Investors: 3 Dividend Stocks Worth Holding Forever

These TSX stocks have the potential to grow their dividends over the next decade, making them top investments for TFSA…

Read more »

hand stacks coins
Investing

Secure a Wealthy Future With These 3 Canadian Stocks

These Canadian stocks have the potential to appreciate substantially over time and may also enhance returns through dividend payments.

Read more »

Tractor spraying a field of wheat
Dividend Stocks

Is Nutrien Stock a Buy for its Dividend Yield?

Nutrien is down more than 50% form the 2022 highs. Is NTR stock now oversold?

Read more »

analyze data
Investing

3 Blue-Chip Stocks Every Canadian Should Own

These blue-chip stocks are backed by large-cap companies with well-established businesses, solid fundamentals, and a growing earnings base.

Read more »

dividends grow over time
Stocks for Beginners

The Smartest Growth Stock to Buy With $2,000 Right Now

Do you have $2,000 to invest for the long term? These three TSX stocks have and will continue to deliver…

Read more »