3 intriguing international stocks to buy now

Keep an eye on these 3 international stocks

Diversifying your portfolio holdings over the years is arguably one of the best ways to reduce your total risk and maximize your returns. After all, you don’t want to have all your investment eggs in one basket. With US equity markets under severe pressure in 2022, it makes perfect sense to look outside our borders for new opportunities. Exposure to international equities can be a great way to further diversify your accounts, and many exciting companies operate in economies well positioned to thrive in the years to come.
That’s why we’ve compiled a list of international stocks that are particularly interesting right now. Each of these companies has something unique to offer and could become a major asset as the global economy continues to recover from the effects of the pandemic.
Here are 3 intriguing international stocks to buy now:

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Petroleo Brasileiro SA (NYSE: PBR)

The first is Petroleo Brasileiro, a company also known as Petrobas here in the United States. It is the national oil company of Brazil and it focuses on the exploration and production of oil and gas in the Brazilian offshore fields. Energy stocks have been the strongest sector in the market this year, and with oil prices expected to remain high in the near term thanks to the conflict in Ukraine, these stocks could end up being a bargain at current prices. There’s also a lot to love about how Petroleo Brasileiro is expected to invest heavily in hydrocarbons over the next few years, which could lead to strong production and earnings growth in the future.
This company has access to pre-salt reservoirs offshore Brazil that allow Petrobas to take advantage of low-cost supply that other globally integrated companies cannot match. Other reasons to explore adding shares of this major energy player include a very cheap valuation, as the stock currently trades at a P/E ratio of 4.34. Combine that with a whopping 14.41% dividend yield and it’s easy to see why this is such an intriguing international stock.

British American Tobacco PLC (NYSE:BTI)

Basic consumption

Stocks like British American Tobacco are another great place to look for opportunities right now, as these types of stocks may hold up well even with so many question marks over the direction the global economy is headed. It is one of the world’s largest publicly traded tobacco companies and a company with iconic brands such as Lucky Strike, Pall Mall, Newport and Camel. The stock had a huge rally at the start of the year, but has since pulled back to provide an attractive entry point for long-term buyers to consider.
Investors should be attracted to British American Tobacco’s vapor e-cigarette products, which have become very popular with consumers in recent years. There’s also a lot to like about how this company owns 31% of ITC Limited, which is India’s largest cigarette manufacturer. BTI carries a few risks that investors should understand, especially if the FDA steps in and begins to ban or regulate these types of tobacco products. That said, the stock offers a dividend yield of 8.99% and trades at a beta of 0.76, meaning it’s a great international stock for investors looking to to more conservative plays during a period of heightened stock market volatility.

Toronto-Dominion Bank (NYSE: TD)

If you want to add exposure to the Canadian economy, which rebounded strongly in February, the Toronto-Dominion Bank could be a great stock to consider. Canada’s unemployment rate fell to its pre-pandemic low in February after employers created 337,000 new jobs, which could mean higher interest rates are coming soon. This should be very positive for the Toronto-Dominion Bank, which is one of the two largest banks in Canada. It is a company that operates in three segments, Canadian retail banking, U.S. retail banking and wholesale banking, and recently reported adjusted EPS up 14% from a year to year.
As a reminder, banks like this tend to outperform during periods of rising interest rates, and if the Canadian economy continues to strengthen, we can likely expect improved loan growth for the TD as consumers and businesses get better credit scores. TD is also known to be one of the leading card issuers in Canada, which is another plus point for investors to consider. With a dividend yield of 3.61% and a market-leading position in a strong economy, the Toronto-Dominion Bank is one of the most intriguing financial stocks to consider adding right now.

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