Many investors we talk with stick to U.S. Domestic stocks. We get it, it's a bit easier and more comfortable to deal in domestic stocks. The issue is your portfolio is at the mercy of one country's economy. The benefit of an internationally diversified portfolio is you can weather any storm by reducing volatility and increasing your overall return.
With that said, what international stocks should you invest in? Here's a solid 5 international stocks to buy in 2019 to get you started.
Amazon
Amazon.com is a no-brainer for 2019. If you read our article on U.S. stocks, Amazon also tops the list.
This U.S. Company has shown steady growth in its domestic market, but even greater growth internationally. This growth will continue throughout the next 5 to 10 years; so jumping on board now make perfect sense. With a projected 5-year average annual EPS growth of 45.9%, you can see what we mean.
The growth of its e-commerce coupled with its increasingly popular streaming service are just two of its many business ventures. This is why Amazon not only makes it to our top 5 U.S. Stocks to Buy in 2019, but also one of the top 5 internationally.
JD.com
The chinese ecommerce website JD.com is the largest competitor to Alibaba. The major differentiator is that JD.com is backed by some major companies like Amazon, Google, TenCent and Walmart. These companies not only bring capital, but also major insight into how to slowly chip away at Alibaba's marketshare.
JD.com's focus will be on emerging markets and under-developed tech opportunities China is lacking, especially in medium sized cities. This strategy has cost the company money and reduced its non-GAAP earnings by 14%. That said, this same strategy will also position JD.com to reap the benefits of it's spending in the near future.
Bank of Nova Scotia
Headquartered in Toronto, Canada, the Bank of Nova Scotia is the perfect opportunity to diversify your portfolio. With an expected annual return of 12%-13%, and a dividend yield of 4.2%, this is the ideal way to invest smart. These numbers are fueled by a recent acquisition of Jarislowsky Fraser—an asset management firm for ultra-high net worth accounts: a profitable addition to the bank's already impressive portfolio.
BP
If you like the idea of investing in oil, BP is the international stock for you. BP offers a much higher dividend yield than competitors (5.8%); and with Gulf of Mexico spill payments coming down, BP now has more cash it can return to shareholders or put towards growth. This partnered with the upcoming projects BP has on it's radar, including the Atoll oil field, BP is a solid buy on the global stock market.
A.O. Smith
A manufacturer of water heaters and boilers for both residential and commercial applications doesn't sound like the best international stock. But stick with us. This U.S. Business is the market-share leader in US water heaters. A.O. Smith is now also starting to see the same growth in two more major markets: India and China.
With an increase of sales of 13% and EPS growth of 25% year over year, A.O. Smith is a sure buy. With such a well run company who sits on a large stash of cash, the long-term growth of this stock could be limitless.
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