Historically, the U.S. dollar has been among the safest and most respected currencies in the entire world. That preferred status likely will not change significantly anytime soon, given America’s comparatively strong economy and stable government.
However, it’s worth noting that we’ve been sliding into a weaker-dollar environment for months, ever since the coronavirus pandemic struck in earnest this spring. Case in point: The U.S. dollar index – a measure of the greenback vs. a basket of other currencies including the euro and the Japanese yen – has declined about 10% since March.
This current dollar fragility does have an upside. As America’s currency falls out of favor, other international currencies become more attractive. Companies that book sales in these currencies across Europe, Asia and elsewhere, then get a small boost as those revenues are translated back into dollars. Such firms can be some of the top stocks to buy if you’re anticipating a weak U.S. dollar.
It’s a small difference, to be sure, and the dollar’s strength fluctuates daily based on market trends. But when you’re a multinational corporation doing billions in revenue, even a few percentage points add up in a hurry.
Here are 19 of the top stocks for a weak-dollar environment. If you’re an investor in one of the following 19 multinational stocks, each of which derives more than half of its sales outside the U.S., this could be a trend to watch for and a catalyst for potential outperformance versus their more domestically minded peers.
Data is as of Aug. 9. Dividend yields are calculated by annualizing the most recent payout and dividing by the share price.
