It’s smart to diversify your portfolio, at least to some extent. In fact, the less you know about investing in general and the companies you invest in, and the less you trust your portfolio, the more it will benefit from diversification. Otherwise, you may have too many eggs in too few baskets.
One way to diversify is to add some international collectibles to your mix. After all, there are some scenarios in which the US economy could falter for a short or long time, and some well-functioning non-US holdings could make up for the problems in your local stocks.
Here are three foreign companies to consider. See if anything interests you.
1. Semiconductor manufacture in Taiwan
semiconductor companies They are not all the same. While many specialize in designing semiconductor chips, only a few make or manufacture them. Taiwan’s semiconductor industry (NYSE: TSM) It is one of those manufacturers, claiming to be the “world’s leading semiconductor foundry” since its founding in the 1980s. It made 12,302 products for 535 customers last year and is “the first foundry to offer 5nm production capabilities, the world’s most advanced semiconductor processing technology.”
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With stocks recently down nearly 45% from a 52-week high and outlook Price to Earnings Ratio (P/E) From 13, well below the five-year average of 21, Taiwan Semiconductor’s shares look attractively priced. Moreover, the stock is also paying a dividend, most recently producing 2.3%.
There is a lot to like about the company, but there are some concerns as well. For one thing, it is based in Taiwan, so it faces the possibility of disruption due to the actions taken by China. Also, the US has put $52 billion into investing in the US semiconductor industry to help it grow and become more self-sufficient — $28 billion aimed at building additional facilities, for example. Still, Taiwan Semiconductor is still the industry’s first important dog worth looking at.
2. Yum China
If you’re optimistic about the prospects for Taco Bell, Kentucky Kentucky and Pizza Hut, you might invest in them yum! Trademarks. The company boasts more than 53,000 locations (owned or licensed) in 155 countries and territories. If you are particularly optimistic about the outlook for those chains in China, you may choose to invest in international company yum china (NYSE: YUMC), operates in a country with a population more than four times that of the United States (recently about 1.4 billion versus 330 million). Yum China holds licenses for these three chains in China, has partnered with coffee specialist Lavazza, and directly owns other brands, such as Little Sheep, Huang Ji Huang, COFFii & JOY. As of the end of June, Yum China boasted over 12,000 restaurants in over 1,700 cities in China.
Yum China has some Competitive Advantages That would help defend it against competitors – for example, it built a strong distribution network to deliver food to many parts of the huge country. Its valuation is also attractive, with a recent forward-looking P/E ratio of 24, well below its five-year average of 36. It also pays dividends, most recently generating a 1% return. there Risks and Opportunities in Chinese stocks, so weigh them well if you’re interested in investing there.
Finally, we come to Medtronic (NYSE: MDT), which you might think is an American company. It is now based in Ireland, although it moved its headquarters there in 2015 after the acquisition of Covidien and is now enjoying some tax advantages. The company is a $115 billion healthcare giant specializing in ‘technologies and treatments’ [that] It treats 70 health conditions and includes cardiac devices, surgical robots, insulin pumps, surgical instruments, patient monitoring systems, and more.”
Medtronic shares are attractively priced these days, recently trading at a recent forward-looking P/E of 15.6, well below the five-year average of 19.2. It pays dividends, too, having recently made 3.1%, and it’s been raising those payouts at an average annual rate of 8% over the past five years.
Supply chain issues have pressured this inventory, but it is likely temporary. Meanwhile, Medtronic has several growth catalysts as well, such as dozens of product approvals from regulatory agencies around the world.
If none of the above three companies interest you enough, don’t worry – there are many other powerful foreign companies to consider. And if you’re not comfortable investing abroad – after all, different countries have different business regulations and are investor-friendly to different degrees – you might invest in some US companies that generate a lot of their revenue overseas. ExxonMobilfor example, took 62% of its 2021 revenue outside the United States, while Pfizer 63% of 2021 revenue came from outside the US
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