Late last month, Prime Minister Mark Carney told Canadians that his economic plan includes decoupling from the United States, calling close ties with the Americans a weakness in a speech posted to YouTube. Here is why that has to be one of the most terrible ideas from a prime minister since peoplekind.
The Elbows Up people may not want to hear it, but America butters our bread. Even with Trump tariffs, the U.S. is far and away our largest trading partner, with 75 percent of Canadian exports going there. Exports to the U.S. support 2.04 to 2.06 million Canadian jobs, particularly in the manufacturing sector. Plus, it is the best place in the world to invest. Warren Buffett says due to its economic resilience, major innovation and a system that rewards productivity, you do not bet against America, ever. So here are a few quintessentially American stocks that will keep you in greenbacks over the long term and make your portfolio great again.
Coca-Cola (KO)
Share price: $78.19. 52-week price range: $65.35-$82. Market Cap: $336.41 billion. Quarterly dividend/Yield: $0.53/2.71%. Average analyst rating: Strong Buy.
Buffett Berkshire Hathaway owns 400 million shares of this soft drink giant, and it is easy to see why it is one of his largest and longest holdings. He invested $1 billion after the 1987 market crash. As of last year, his stake in the stock was worth nearly $25 billion, and it pays him $816 million in dividends every year. As the world best-known beverage company, Coca-Cola boasts generations-long brand recognition and has developed a strong foothold in emerging economies, ensuring dependable returns through all kinds of volatility. Some analysts have placed a price target of $90 a share within the next 12 months.
McDonald's (MCD)
Share price: $284.10. 52-week price range: $283.47-$341.75. Market Cap: $201.95 billion. Quarterly dividend/Yield: $1.86/2.62%. Average analyst rating: Buy.
Plenty of fast-food stocks out there, but McDonald's, like Coca-Cola, is in a class by itself thanks to instant global brand recognition. It has an eye on the future, too, being one of the first fast-food chains to pivot to AI and tech to offset steep price hikes across the industry. The technology is also helping McDonald's develop an automated voice ordering system and personalized digital menu boards for its drive-thrus that can change based on real-time data (e.g., featuring a McFlurry on a hot day). The fast-food business may struggle, but McDonald's likely will not, with analysts expecting it to outperform peers and gain market share with an expanded beverage menu and loyalty program. Analysts say the stock is currently priced low, with the average price target at $346.
JPMorgan Chase & Co. (JPM)
Share price: $307.15. 52-week price range: $248.83-$337.25. Market Cap: $824.35 billion. Quarterly dividend/Yield: $1.50/1.95%. Average analyst rating: Buy.
With more than $4.9 trillion in assets, JPMorgan Chase & Co. is America biggest bank, and one of the largest in the world. Its deep pockets and conservative balance sheet make it almost impervious to global instability such as war or economic downturns. It is considered a safe haven investment, with hope for robust growth in the near future due to banking fee income and a partnership with Apple which will see the bank take over from Goldman Sachs as the issuer of the Apple Card, bringing the bank a $20 billion portfolio in card balances and 12 million customers from a young, digitally active user base (20-40 age group). JPMorgan is considered fairly valued by analysts at current prices, with average estimates of $336 by next year.
RTX Corporation (RTX)
Share price: $172.94. 52-week price range: $126.03-$214.50. Market Cap: $232.84 billion. Quarterly dividend/Yield: $0.73/1.69%. Average analyst rating: Buy.
Formerly known as Raytheon, RTX is an aerospace and defence contractor that builds airplane engines, avionics and interior systems, space satellite components, and radar systems, among other technologies. They are best known for their military applications, specifically the Patriot missile and the Iron Dome, a missile defence system that intercepts rockets, artillery and mortars in mid-flight. You might have seen it in action in news footage of Hezbollah and Iran launching rockets against Israel. RTX is seen as a direct beneficiary of increased NATO spending, and analysts generally see it as a good investment with a price target of $221, though some caution it may not see the kind of growth that would exceed peers in the defence industry. Get into this one and infuriate the keffiyeh-wearing enthusiast in your life.
Johnson & Johnson (JNJ)
Share price: $224.20. 52-week price range: $146.12-$251.71. Market Cap: $539.7 billion. Quarterly dividend/Yield: $1.34/2.39%. Average analyst rating: Buy.
Johnson & Johnson is world largest and most diverse healthcare company, and is a dividend king, increasing its annual payouts for more than 60 years. American investors use the stock as a keystone in their retirement portfolios thanks to its size, stability, recession-resistant business model and consistent return on investment. The company once featured iconic brands such as Tylenol and No More Tears shampoo, but spun off its consumer products to independently traded Kenvue Inc. Kimberly-Clark is currently in the process of acquiring that company, with a $48.7 billion deal expected to close by the end of the year. In the meantime, Johnson & Johnson continues to focus on pharmaceutical manufacture and researching and developing treatments for major diseases. Analysts have a price target of $264. You can turn a buck here, and feel pretty good about yourself while doing it.
Disclaimer: The information contained in this column is for informational purposes and is not intended to be investment advice or an offer or recommendation to buy or sell any security. Brian Towie is not a certified financial adviser and encourages readers to do their own diligence before investing their money.
