Stocks Down Under recaps tha Best American stocks for Australian investors! We know that many Australian investors look beyond the ASX for opportunities, and US equities remain the deepest and most liquid market in the world.
What are the Best ASX Stocks to invest in right now?
Practical considerations for investors
But not all American stocks are created equal. The current environment is shaped by geopolitical uncertainty, tariff‑driven volatility and a slowing global growth outlook. This rewards precisely the kind of businesses that dominate the US exchanges.
And we are not just talking about the famous tech giants. Our list includes companies with durable competitive moats, multi‑decade records of rewarding shareholders, and the balance sheet resilience to maintain payouts through economic cycles. Many, but not all, qualify as a Dividend Aristocrats – a title that can only belong to S&P 500 companies that have increased its dividends every year for at least 25 consecutive years. It is a threshold that filters out opportunists and validates genuine franchise quality.
Australian investors receive US dividends subject to a 15% withholding tax under the US–Australia tax treaty, and US dividends do not carry franking credits. Currency movements between the US dollar and Australian dollar also influence returns. A structurally weaker Australian dollar in recent years has generally amplified total returns for local investors holding US assets.
With those considerations in mind, the following six companies represent, in our view, a defensible long‑term anchor for Australian portfolios in 2026.
Here are the 6 Best American stocks for Australian investors in 2026!
Johnson and Johnson (NYSE:JNJ)
Founded in 1886, Johnson & Johnson remains one of the most recognisable names in global healthcare. Following the 2023 spin‑off of its consumer health division (Kenvue), JNJ now operates across two core segments: Innovative Medicine, which includes oncology and immunology blockbusters such as Darzalex and Tremfya, and MedTech, spanning surgical robotics, orthopaedics and vision care. Its 2025 results were robust, with revenue of US$94.2bn (+6%) and net profit of US$26.8bn — a near doubling year‑on‑year due partly to the resolution of litigation provisions and acquisition activity.
JNJ has increased its dividend for 62 consecutive years, placing it firmly in Dividend King territory. Its yield of roughly 3.2% is supported by a deep late‑stage pharmaceutical pipeline. Litigation risk, particularly around talc liabilities, remains the primary overhang, but JNJ has been managing these aggressively through its legal structure. For a 10‑year holder, the combination of yield, growth and defensive characteristics is compelling.
Proctor & Gamble (NYSE:PG)
Procter & Gamble, founded in 1837, is arguably the most dependable consumer staples company globally. Its portfolio — Tide, Gillette, Pampers, Oral‑B, Head & Shoulders and dozens more — spans more than 180 countries and benefits from pricing power that has proved remarkably durable. In fiscal 2025, P&G reported net sales of US$84.3bn (flat year‑on‑year due to FX headwinds, though organic sales grew 2%) and net profit of US$16.1bn. It returned more than US$16bn to shareholders through dividends and buybacks, marking its 69th consecutive year of dividend increases.
P&G’s investment case rests on consistency and compounding. Its yield of around 2.4% is modest, but the reliability of annual increases across nearly seven decades distinguishes it from almost any other global equity. For Australian investors seeking a low‑volatility anchor in a US portfolio, P&G remains one of the most defensible choices available.
3. Coca-Cola (NYSE:KO)
Coca‑Cola has been a global consumer icon since 1892. Its franchised distribution model — where KO manufactures concentrate and licensed bottlers handle production and distribution — delivers structurally high margins with limited capital intensity. In 2025, Coca‑Cola reported net revenue of US$47.9bn (+2%), organic revenue growth of 5%, and net profit of US$13.1bn (+23%). Despite currency headwinds and evolving consumer preferences, pricing power and global volume growth remain intact, particularly in emerging markets.
Coca‑Cola has raised its dividend for 63 consecutive years and currently yields around 3.0%. Berkshire Hathaway’s yield‑on‑cost, accumulated since 1988, is a powerful illustration of long‑term compounding. For an Australian investor with a 10‑ to 20‑year horizon, KO remains one of the highest‑conviction income plays in global equities.
4. Walmart (NYSE:WMT)
Walmart’s scale is almost unmatched. In fiscal 2025, the company generated revenue of US$681bn (+5%) and net profit of US$19.4bn (+25%). More compelling than the headline numbers is Walmart’s ongoing structural transformation. Advertising revenue from its in‑store and online ecosystem, third‑party marketplace GMV, and the expanding Walmart+ subscription service are all growing materially faster than core retail. Walmart has increased its dividend for 51 consecutive years.
The company’s yield, at roughly 1.0%, is modest. But the total return profile — combining steady dividend growth with capital appreciation as the market re‑rates its higher‑margin ancillary businesses — has been strong. In a geopolitically uncertain environment, Walmart’s positioning as the world’s go‑to value retailer is a meaningful defensive attribute. Importantly, Walmart has demonstrated it can compete with Amazon, a claim few traditional retailers can credibly make.
5. Automatic Data PRocessing (NDQ:ADP)
ADP is the world’s largest payroll processor, managing payroll for roughly one in six US workers and serving more than 1 million clients globally. Its business model is uniquely resilient. The traits of long‑term service contracts, high switching costs and interest earned on client funds held between collection and disbursement create an earnings profile that often strengthens in rising rate environments. In fiscal 2025, ADP reported revenue of US$20.6bn (+7%) and net profit of US$4.1bn (+9%), with adjusted EBIT margin expanding 50 basis points to 26%.
ADP has raised its dividend for 50 consecutive years — a testament to the durability of its model. Employment services are not entirely immune to economic cycles, but they are far less volatile than most technology‑adjacent businesses. The yield sits around 2.1%, supported by a credible history of double‑digit annual increases. For Australian investors, ADP provides exposure to the structural growth of US workforce management and HR technology through one of the most reliable dividend compounders in the S&P 500.
6. Microsoft (NDQ:MSFT)
For Australian investors, Microsoft represents a structurally different proposition from the other names on this list. It is a growth compounder as much as an income stock, with a yield of roughly 0.8%.
Its competitive position across cloud infrastructure, enterprise productivity software and AI tooling, underpinned by its integration with OpenAI and the Copilot ecosystem, is formidable and widening. In a world where AI is increasingly embedded in enterprise workflows, Microsoft’s position at the centre of that stack is among the most defensible in global technology.
Microsoft does not yet qualify as a Dividend Aristocrat — it began paying dividends in 2004 — but will get there soon. But also, few companies better illustrate the case for patient ownership of a durable franchise.
In CY25, Microsoft reported revenue of US$281.7bn (+15%) and net profit of US$101.8bn (+16%), driven by 23% growth in Microsoft Cloud (US$168.9bn) and accelerating Azure adoption as enterprises deploy AI at scale. The company continues to return substantial capital to shareholders through dividends and buybacks.
