Caterpillar Inc. (CAT), Intel Corporation (INTC): A Sneaky Way to Gain International Diversification

Intel Corporation (NASDAQ:INTC) generated more than $53 billion in full-year 2012 revenue, along with $11 billion in profits last year. Intel expects 2013 revenue growth to be in the low to mid-single digits, due largely in part to the fact that 79% of its business comes from outside the Americas.

McDonald’s has put in huge efforts in expanding into the BRIC nations, and its globally recognized brand will likely mean success in these endeavors. McDonald’s is executing on its plan to open 225-250 new restaurants every year in China until it reaches its stated goal of 2,000 restaurants there by the end of 2013. Moreover, the company has now targeted growth through Russia as well. McDonald’s has 357 restaurants in more than 85 Russian cities, with plans to open at least 150 self-operated restaurants in Russia over the next three years.

Winners in the U.S. and abroad

You may not have realized this, but the truth is that if you’re invested in American large-cap multinationals such as Caterpillar Inc. (NYSE:CAT), Intel Corporation (NASDAQ:INTC), and McDonald’s, you’re already diversified geographically. With these stocks, there’s little need to invest in companies you’ve barely heard of whose financial reporting may be questionable. These stocks derive more than half of their business from outside the United States. In a sense, they’re American companies in name only.

These stocks are very profitable and extremely well-managed. They have spread their businesses into nearly every corner of the world, ensuring that their days of growth are far from over. More specifically, these companies do a great deal of business in the BRIC nations, which are poised to fuel the global growth engine in the near future. As this trend continues, you can fully expect higher profits and dividends from these stocks for years to come.

The article A Sneaky Way to Gain International Diversification originally appeared on Fool.com and is written by Robert Ciura.

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