Since the start of the year, our dollar has slid from 80 US cents, down to 72 US cents, with further falls expected.
Rather than bemoan the rising relative cost of overseas holidays, buying shares in Aussie companies with overseas earnings is a good way to get on the right side of this dynamic.
Here are a few businesses worth a look…
CSL Limited (ASX: CSL)
The global giant recently posted another stellar result. CSL continues to go from strength to strength, with sales of its vaccines and other products continuing to be strong.
There are also several new products in the pipeline, with a number of them currently in the trial phase. Management also spends a healthy amount on R&D each year which bodes well for future growth.
With CSL now trading above 40 times earnings, it's starting to look fully priced. I wouldn't sell shares if I owned CSL, but I'm not sure it's great value today. Having said that, with continued strong growth it could still prove a good investment.
Orora Ltd (ASX: ORA)
Orora is a designer and manufacturer of bottles, cans and boxes for a number of brand-name companies. The company continues to do well after being spun out of its parent company Amcor Limited (ASX: AMC) in 2013.
This type of industry is less likely to see earnings savaged should there be a global recession, given the less cyclical nature of the packaging business. Investing in boring companies with non-discretionary products is a good place to be if the economy gets the wobbles.
Orora's latest results were solid, with earnings per share increasing by 11.5%, while the dividend was boosted by 13.6%.
With continued growth expected and shares trading around 20 times earnings, the company looks like decent value right now. Orora trades on a dividend yield of 3.6%, partly franked.
Foolish takeaway
Each business is likely to benefit from the falling dollar as their earnings are given a boost when converted to Aussie dollars. I do like both companies, but would lean towards Orora because of the lower multiple and higher dividend.
