Investing in international stocks can be a great way to diversify your portfolio and gain exposure to different markets. One such market is Canada, which has a strong and stable economy. Many Canadian companies are listed on US exchanges, making them accessible to American investors. In this article, we will explore the top Canadian stocks that trade in the US and provide valuable insights into investing in these companies.
Top Canadian Stocks on US Exchanges
Royal Bank of Canada (RY)
- Key Information: Royal Bank of Canada is one of the largest banks in Canada, offering a wide range of financial services, including retail banking, wealth management, and corporate banking.
- Why Invest: RBC has a strong presence in the Canadian market and is well-positioned to benefit from the country's growing economy. The bank also has a solid track record of profitability and has consistently paid dividends to its shareholders.
Toronto-Dominion Bank (TD)
- Key Information: Toronto-Dominion Bank is another major Canadian bank with a diverse range of financial services. It operates in Canada, the United States, and the Caribbean.
- Why Invest: TD Bank has a strong presence in the US through its TD Ameritrade division, which offers brokerage and investment services. The bank has a solid financial position and has been a consistent dividend payer.
BCE Inc. (BCE)
- Key Information: BCE is a leading communications company in Canada, providing wireless, wireline, and cable TV services.
- Why Invest: BCE has a strong market position in Canada and is well-diversified across different segments of the telecommunications industry. The company has a long history of paying dividends and has grown its dividend payments over time.
Enbridge Inc. (ENB)
- Key Information: Enbridge is a major energy infrastructure company in Canada, focused on the transportation and distribution of natural gas, crude oil, and liquid petrochemicals.
- Why Invest: Enbridge has a significant presence in the North American energy market and is well-positioned to benefit from the growth in energy demand. The company has a strong track record of generating consistent cash flow and has increased its dividend payments in recent years.
Teck Resources Limited (TCK.B)
- Key Information: Teck Resources is one of the world's largest diversified resource companies, producing steelmaking coal, copper, zinc, and energy.
- Why Invest: Teck Resources has a strong presence in the global commodities market and is well-diversified across different commodities. The company has a long history of paying dividends and has increased its dividend payments over time.
Case Study: Royal Bank of Canada (RY)
Let's take a closer look at Royal Bank of Canada (RY) as an example of a Canadian stock that trades in the US. RY has a market capitalization of over $200 billion and is one of the most popular Canadian stocks among US investors.
In 2020, RY reported net income of $8.9 billion, a decrease of 18% from the previous year due to the impact of the COVID-19 pandemic. Despite the decrease in net income, RY continued to pay dividends throughout the year and has a strong history of increasing its dividend payments over time.
RY's stock price has been volatile in recent years, but it has shown a strong upward trend since the beginning of the COVID-19 pandemic. This can be attributed to the company's strong financial position and its ability to navigate through the economic downturn caused by the pandemic.
Conclusion
Investing in Canadian stocks that trade in the US can be a great way to diversify your portfolio and gain exposure to a strong and stable economy. By understanding the key information and performance of these companies, you can make informed decisions about your investments. As always, it is important to do your own research and consult with a financial advisor before making any investment decisions.
