Best Foreign Stocks to Buy in 2021

In this post, I’ll share my list of international stocks in 2021 to invest in. I find it necessary to diversify and not to hold all my money invested in one single market. Therefore I created a list of my favorite international and foreign stocks to buy today and why.

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Givaudan

Givaudan is a Swiss multinational manufacturer of flavors, fragrances, and active cosmetic ingredients. As of 2008, it is the world’s largest company in the flavor and fragrance industries.

The company’s stock was pretty much stagnant from 2000 to 2013, but since then it has seen its value rise by over 115%.

The company also pays a dividend, with an initial yield of 1.68%. Givaudan has delivered an average of 12% per year annual increase in its dividend, based on the past ten years of high-dividend payments. Earnings have also been growing modestly at a rate of around 9%, and are forecast to keep that growth in the years to come.

As we all know, Switzerland is one of the world’s safest places for investors and the Swiss Franc is a very stable currency in the global economy.

If you are looking into investing outside the U.S, I highly recommend you look into Swiss Stocks. With that being said, Givaudan is, in my opinion, one of the safest yielding foreign stocks to buy in 2021.

Partners Group

Partners Group is a global private market investment manager, serving around 900 institutional investors. The company has $96.0 Billion in assets under management. As said and I quote: ‘We realize potential in private markets by financing and developing great companies, desirable real estate, and essential infrastructure.’

As of March 18. 2020, in the middle of a pandemic, Partners Group purchased its shares due to an ‘attractive stock market valuation’.

On top of that, as of March 2020, Partners Group reported a strong 2019 financial performance with revenues up 21% to CHF 1.6 billion and EBIT up 17% to CHF 1 billion; proposed an increased dividend of CHF 25.50 per share.

Even though it suffered a cut in its revenue due to the pandemic, the company’s stock recovered to its past value (before the pandemic started) and has the potential to go way higher. Not only is this one of the best foreign stocks. It also has a high-yield dividend of 2.51%.

This Swiss Stock also makes it to my list of “best foreign stocks to buy in 2021”, as I see a significant price entry & opportunity for future earnings growth. A solid international stock.

Rio Tinto

Rio Tinto Group is an Anglo-Australian multinational and the world’s second-largest metals and mining corporation, behind BHP, producing iron ore, copper, diamonds, gold, and uranium.

The company normally pays a semi-annual dividend, and its current yield is 4.08%. On their website, they clearly say how important giving back to shareholders is to them, as mentioned by Rio Tinto Chief Executive J-S Jacques:
“Our world-class portfolio of high-quality assets and our strong balance sheet consistently serve us well in all market conditions and particularly in turbulent times. This, together with our disciplined capital allocation, underpins our ability to sustain production, increase our investment in the business, pay taxes and royalties to governments and continue delivering superior returns to shareholders.”

Looking into their Stock:

As you can see, Rio Tinto’s stock saw a massive increase of over 220% in the past 5 years. With a forward P/E of 10.67, I think the company is a good foreign stock to buy at this point, with the potential to grow even more in the future while increasing its dividend growth and dividend payout. Also, Rio Tinto currently has a Zacks Rank of #1 (Strong Buy). This must be one of my favorite international stocks to buy in 2021.

Toronto Dominion Bank

The Toronto-Dominion Bank is a Canadian multinational banking and financial services corporation headquartered in Toronto, Ontario.

This is a foreign stock to buy, that I own and will hold forever. They have a yummii dividend yield of 4.23%.
Unlike the big U.S. banks, TD has more freedom to set its own dividend policy. This is why the company never cut its dividend during the financial crisis.
Fun fact: Global Finance magazine named TD Bank the “safest bank in North America.”
According to Marketbeat, their average twelve-month price target is $70.50, predicting that the foreign stock has a possible upside of 25.71%.

Even in the middle of a pandemic, Toronto Dominion Bank’s gross profit for the twelve months ending October 31, 2020, was $32.468B, a 5.08% increase year-over-year.

Its stock also saw some growth in the past 5 years, as seen in the image below:

The stock is still recovering from its February fall and therefore makes a perfect entry price point.
If you are looking into investing your money in an international stock today, I wouldn’t look anywhere else. In my opinion, it’s one of the must-have foreign stocks in 2021.

Tencent

Tencent Holdings Ltd, is a Chinese multinational technology conglomerate holding company. Founded in 1998, its subsidiaries globally market various Internet-related services and products, including entertainment, artificial intelligence, and other technology.

Tencent is the biggest video game company in the world. It owns US game studio Riot Games and has a substantial stake in Epic Games, the company behind “Fortnite.”
The company doesn’t only do games though: ad revenue rose 16% year-over-year, they own WeChat (lets users make payments, order products, etc.), Tencent Cloud (Ranked nr 2 in China), Tencent Video, and more.

The company also pays a dividend but has a minimal value (0.22% div. yield). However, the international stock’s value has seen an increase of 289% in the past 5 years.

Taking a look at their annual report, one can observe:
– Revenues, Gross Profit, Profit for the Year, Total Assets, Total Equity, Operating profit
All of the above have been growing with solid numbers year after year.
Even though Tencent’s P/E ratio is at 37.38, looking into their numbers and taking everything into consideration: I believe the company is at a good entry price right now and it’s an advantageous foreign stock to buy.

I hope you enjoyed my list of “Best International Stocks for 2021”! Let me know if you decide to buy any of these foreign stocks!

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