international diversification. This can be accomplished by many different means such as buying a foreign stock, buying an ADR of a foreign company or investing in an international fund. However, one method that is often overlooked is buying large U.S. multi-national companies.
As a result of globalization, many large U.S. companies now realize a significant percentage of their revenue from foreign markets. Companies that are diversified across several economies offer a real diversification benefit to their investors. They often can reallocate resources from slowing national economies to areas in the world that are enjoying more robust growth.
Below are five U.S. companies that have more than 50% of their sales revenue generated outside the U.S. based on their latest 10-K:
Colgate-Palmolive Co. (CL) is a major consumer products company that markets oral, personal and household care and pet nutrition products in more than 200 countries and territories.
Non-U.S. Revenues: 78% | Yield: 2.3%
Exxon Mobil Corporation (XOM), formed through the merger of Exxon and Mobil in late 1999, is the world's largest publicly owned integrated oil company.
Non-U.S. Revenues: 67% | Yield: 2.5%
McDonald's Corporation (MCD) is the largest fast-food restaurant company in the world, with about 33,700 restaurants in 119 countries.
Non-U.S. Revenues: 68% | Yield: 3.1%
The Coca-Cola Company (KO) is the world's largest soft drink company, KO also has a sizable fruit juice business.
Non-U.S. Revenues: 59% | Yield: 2.8%
3M Co. (MMM) is a diversified global company that provides enhanced product functionality in electronics, health care, industrial, consumer, office, telecommunications, safety & security and other markets via coatings, sealants, adhesives, and other chemical additives.
Non-U.S. Revenues: 67% | Yield: 2.4%
As always, with rewards comes risks. Doing business in countries with different economic and social values can sometimes lead to undesirable results. In the past, U.S. companies have lost facilities to hostile foreign countries when the politics turned against the U.S. Also, currency exchange can work for or against the company. As always, you must weigh the risks vs. rewards prior to investing.
Full Disclosure: Long CL, XOM, MCD, KO, MMM. See a list of all my dividend growth holdings here.
- 9 High-Yielding Mega-Cap Stocks
- Best Stocks for 2013
- Dividend Investors Should Focus On Stocks, Not The Market
- The Secret Ingredient of Dividend Growth Stocks
- 9 High-Yield Stocks With A Low Price To Book
Tags: [CL] [XOM] [MCD] [KO] [MMM]
Popular Posts - Last 7 days
When you hear the words "tech stocks", many investors think back to the tech bubble in the late 90s. A tech company's goal ba...
Linked here is a detailed quantitative analysis of Cisco Systems, Inc. (CSCO). Below are some highlights from the above linked analysis: ...
Each Sunday I highlight any notable articles that I came across over the past week. Though I may not always agree with each of the articles ...
Have you ever noticed those that most vehemently attack a buy-and-hold strategy really don’t understand how the strategy works? They confus...
Linked here is a detailed quantitative analysis of W.W. Grainger, Inc. (GWW). Below are some highlights from the above linked analysis: C...
Presented below are my dividend stock and ETF/CEF holdings. This is not a recommendation to buy these securities. I have classified some of...
Linked here is a detailed quantitative analysis of Chevron Corporation (CVX). Below are some highlights from the above linked analysis: C...
Too often we take a short-term approach, to our long-term detriment. There is a reason we don't see infomercials selling dividend growth...
Linked here is a detailed quantitative analysis of General Mills, Inc. (GIS). Below are some highlights from the above linked analysis: C...
Linked here is a detailed quantitative analysis of Abbott Laboratories (ABT). Below are some highlights from the above linked analysis: C...