2 International Stocks to Add Now
With so many great companies trading on the US markets, we sometimes forget that there is literally a whole world of stocks out there. While most of the largest companies in the world trade in the US, there are plenty of interesting stocks to own internationally as well. In fact, many global stock markets are seeing lower valuations because local economies are having a more difficult time with inflation following the pandemic. This makes it an opportunistic time to add some quality global companies to your portfolio. Here are 2 international stocks to add now before they recover.
Nintendo (OTC: NTDOY)
Everyone thinks about Nintendo nostalgically from their childhoods. Many of us grew up playing systems like Super Nintendo or Nintendo 64. Younger readers will remember the Gamecube or the Wii. But this current generation is able to enjoy all of these systems through the Switch as well as Nintendo’s choice to branch out into other forms of media. The Super Mario Bros Movie has grossed over $1.3 billion worldwide at the box office alone so far in 2023. This does not include merchandise sales which the company will likely be raking in for years to come.
So why are we interested in investing in Nintendo? After all, the company has never had the same sales figures as companies like Sony or Microsoft (NASDAQ: MSFT). The company has already announced future movies based on its gaming brands, which has caused the internet to speculate on which games will get the adaption to the silver screen. At the top of my wish list? A new Pokemon movie, a Legend of Zelda movie, or a Donkey Kong film. They could even continue on with the Mario saga as well. The sky is the limit right now for Nintendo and for a company that could be seeing some major growth in the future, the stock is trading at a price-to-sales ratio of just 3.33. Nintendo has a ton of cash on its balance sheet and a growing group of loyal fans. Oh and the cherry on top? NTDOF pays out a semi-annual dividend with a yield of 11.98%!
British American Tobacco (NYSE: BTI)
I understand that a lot of people do not like investing in tobacco stocks and I absolutely respect your decision. British American Tobacco is one of the big tobacco companies in the world with a strong brand portfolio and a plan to move away from addictive cigarettes in the future. It has been one of the leading vape sellers since before it was popular and has a goal of more than 50 million global users by 2030.
Its current price multiples are lower than its competitors in the tobacco industry. BTI also has a long record of profitability and a high rate of free cash flow which means the monstrous 8.31% dividend yield is safe. Another attractive thing about BTI is that it is a truly global brand. It owns regional cigarette brands on nearly every continent including major bones like Kool, Lucky Strike, Pall Mall, and Dunhill. If you’re looking for a stock with relatively low downside and a massive, consistent dividend, then BTI is worth adding to your portfolio at its current price.
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