These stocks pay out a regular and dependable dividend that serves as a great source of passive income.
But if you’re looking for suitable growth stocks to power your portfolio, you can turn to US companies.
New investors may be unfamiliar with stocks on overseas exchanges such as the NASDAQ Composite Index or New York Stock Exchange.
That’s why you should look for familiar names that resonate and that you can identify easily with.
Here are three US-listed stocks that beginner investors can consider for their overseas portfolio.
Apple (NASDAQ: AAPL)
Either yourself or one of your family members is likely using an iPhone or iPad.
Apple is the company behind these amazing devices and smartphones, and it also sells other products such as accessories and smartwatches and offers services such as iCloud and Apple TV.
The technology company has done well during the pandemic, chalking up growth as demand for its products stayed firm.
For its fiscal year ended 30 September 2021, total sales rose 33.3% year on year to US$365.8 billion.
Operating profit climbed 64.4% year on year to US$108.9 billion and net profit surged nearly 65% year on year to US$94.7 billion.
Apple shows no sign of slowing down this year as shown by its latest results for the nine months ended 30 June 2022 (9M2022).
Sales for 9M2022 rose 7.7% year on year to US$304.2 billion while net profit crept up 6.7% year on year to US$79.1 billion.
Of note, Apple’s active installed base of devices hits a new record across all its major product categories.
The US$2.7 trillion technology behemoth also pays out a quarterly dividend of US$0.23 per share, taking the annual dividend to US$0.92.
Dividend yield stands at 0.5% for Apple’s shares but Singapore investors should note that there is a 30% withholding tax on all US-sourced dividends.
With this tax, the dividend yield on Apple’s shares falls to just 0.35%.
Nike (NYSE: NKE)
Nike is one of the largest sports apparel and footwear brands in the world.
Top athletes around the globe swear by Nike’s innovative footwear, and the company has a strong brand presence that keeps it at the top of consumers’ minds.
The company has reported a steady set of financials for its latest fiscal year ended 31 May 2022 (FY2022).
Revenue inched up 5% year on year to US$46.7 billion despite supply chain disruptions as demand stayed firm.
Gross profit rose 8% year on year to US$21.5 billion as gross margin crept up from 44.8% in FY2021 to 46% in FY2022.
Net profit increased by 6% year on year to US$6 billion.
Nike introduced its Consumer Direct Acceleration strategy two years ago, outlining a clear vision to extend its digital presence and create deeper and more meaningful customer relationships.
This initiative is working well as the sporting company reported digital growth of 18% year on year for FY2022.
Nike continues its innovative streak with upcoming new sneaker releases for September, including the Air Jordan 6 Georgetown and Dunk High 1985 Barely Rose.
Nike paid out a dividend of US$1.19 per share for FY2022, giving its shares a dividend yield of 1%.
After accounting for the withholding tax, the dividend yield falls to 0.7%.
Mastercard (NYSE: MA)
Mastercard is a financial payments company that acts as a middleman between consumers and merchants by working with financial institutions to issue debit and credit cards.
The company had a total of 2.97 billion cards in issue as of 30 June 2022 and has a presence in more than 210 countries and territories.
Mastercard is seeing increased consumer spending as countries reopen their borders, providing a strong uplift to its financial results.
For the first six months of 2022 (1H2022), revenue increased by 22.8% year on year to US$10.7 billion.
Operating profit climbed 31.5% year on year to US$6 billion while net profit improved by 26% year on year to US$4.9 billion.
In the second quarter, gross dollar volume for worldwide transactions grew 12% year on year to US$2.1 trillion.
Cross-border volumes surged by 54% year on year in the first seven months of 2022, and are 40% higher than the levels recorded for the first seven months of 2019.
These numbers clearly show an uptrend in consumer spending that has exceeded pre-pandemic levels.
Mastercard paid out a quarterly dividend of US$0.49 per share for an annual dividend of US$1.96.
Its shares offer a forward dividend yield of 0.5%, or 0.35% when the withholding tax is accounted for.
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Disclaimer: Royston Yang owns shares of Apple, Nike and Mastercard.