International companies, especially here in the U.S., don’t get the attention they deserve. They are sometimes overlooked as another alternative to the U.S. market. However, investors should pay greater attention to stocks in other international markets that offer great potential and, most importantly, diversification, which is critical to a robust investment portfolio. Companies located in other parts of the world can tap into potential earnings that are region-specific and offer unique opportunities for investors, like a stock mentioned below.
I will discuss three different international stocks that offer investors promising returns and great valuations.
United Microelectronics (UMC)
United Microelectronics (NYSE:UMC), based in Taiwan, is a semiconductor foundry company that creates various integrated circuit products. They have multiple offices in China, Singapore, Japan, Hong Kong, and the U.S.
Over the past year, the company has seen an increase in its stock price of 22%. They released their most recent earnings report on Oct. 25, which stated a drop in total revenue of 24%, and net income fell by 41% compared to the third quarter of 2022. United Microelectronics noted that they have experienced a 2023 significant drop in market demand in the foundry industry. Still, it has begun to recover slightly compared to its second quarter results for 2023. Following this last earnings report, which was somewhat disappointing, their stock price fell by just 4%.
United Microelectronics also offers a decent dividend payout to investors, which on an annual basis is approximately 7.91%. Their most recent dividend payout to the investor was for the third quarter of 2023, which was 58 cents per share.
The overall demand for integrated circuit products is causing investors to become somewhat weary of the company in the future, with issues dealing with overall profitably at the forefront. They are a company to keep an eye on, and they may offer a better buying opportunity in the future.
Cemex (NYSE:CX), located in Mexico, is a leading producer of cement products, pre-mixed concrete, and similar aggregates. They are primarily involved in constructing culverts, drainage basins, concrete paving, and other architectural construction solutions.
Since September of this year, their stock price has fallen by 24% primarily because of liquidity issues, which involve Cemex requiring their credit agreement of approximately $3 billion to be refinanced. This pushes the maturity date out into sometime in 2028. This issue with liquidity for the company has recently spooked investors into becoming uncertain about what the future holds for Cemex, specifically surrounding their finances.
But, despite the recent drop in their share price, Cemex is still up 49% year-to-date. The company’s future has an upside in that the need for construction materials, especially within the United States and Mexico, will continue to rise. Cemex is in a position to take advantage of this and enable a more stable future for itself.
Enel Chile (ENIC)
Enel Chile (NYSE:ENIC), headquartered in Chile, is the leading distributor of electricity for the country and is last, but not least, on this list of international stocks to consider. The company produces electricity through several methods, including geothermal plants, wind and solar power, hydroelectric, and thermal energy. They also offer natural gas transport and other related engineering services.
Over the past year, Enel Chile has seen a surge in its share price, which has grown by 71%. The company offers strong potential and distributes an excellent dividend yield to investors, which on an annual basis is 11.13%. Their most recent dividend payment was for the second quarter and was approximately 32 cents per share.
Enel Chile is positioned well due to the fact that Chile is a rapidly growing market and the need for electricity there is expected to grow by around 25% by the end of 2030. And with Enel Chile being the largest producer in the country, the growth projection for the company is very promising.
As of this writing, Noah Bolton did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.