3 FOREIGN STOCKS TO FORTIFY YOUR PORTFOLIO AGAINST THE FALLING DOLLAR

By Grant Bailey and the Sick Economist

Unfortunately, the U.S. dollar is losing value at an alarming clip, eroding purchasing power for American investors. Of course, you’ve got central bankers swearing it’s all under control… but the reality? Inflation’s sticky sidekick, the weakening greenback, is hammering returns on U.S. assets while foreign stocks with hard assets and dividends shine brighter. So, where’s the evidence? Well, to be quite frank, it’s everywhere: the DXY index has slid over 10% in the past year alone, and real yields stay negative.

So, knowing the dollar’s rapid depreciation is very real, what should you be hunting for in the global stock market? The smart play favors companies with dollar-hedging traits: low-to-moderate debt/equity (under 1.0 ideally), attractive price to earning ratios (below 20), robust free cash flow yields (over 5%), and high dividend yields with payout ratios below 70%. A debt-to-equity ratio sizes up leverage versus equity value, P/E spots earnings bargains, free cash flow yield measures cash generation muscle, and payout ratios confirm dividend durability. What you should prioritize are firms with hard assets, oil, pipelines, metals, priced in strengthening currencies or commodities that outpace dollar decay. Companies that operate in a diverse set of nations and currencies are attractive. Sure, you’ve now got that criteria locked in, but do you really want to screen thousands of ADRs and global tickers yourself? No sweat, we’ve done the legwork with public metrics straight from Macrotrends. So, with that said, let’s dive into the 3 international stocks we picked to shield your portfolio from dollar doom!

Eni (Ticker: E) 

Our first pick is Eni, the Italian energy powerhouse crushing it in oil, gas, and renewables across six continents. Eni’s semi-non-cyclical edge comes from hydrocarbons’ currency agnostic demand (energy doesn’t wait for currency swings). Plus Eni’s euro-denominated assets benefit as the dollar weakens. Quantitatively, per Macrotrends Q3 2025 data, Eni’s debt-to-equity ratio holds steady at 0.62, comfortably below 1.0 and improved from earlier quarters, underscoring disciplined leverage amid softer prices. Eni’s P/E ratio around 20 suggests a fair value play, considering historical averages over 20, fueled by production beats. Free cash flow yield powered to ~13%, with P/FCF staying around 8.1 on robust cash from operations topping €3.3 billion quarterly, more than covering capex. Dividends hold firm at ~6% yield, payout ratio around 29% on adjusted earnings yet fully backed by FCF, with Q4 guidance lifting buybacks to €1.8 billion annually for shareholder punch. Be aware; the cash portion of this payout could look a little lower for American shareholders, because the company withholds Italian taxes at the time of payment; with proper tax planning, you should not have to pay taxes again on that income in America. 

Going into a bit more qualitative analysis, Eni’s upstream engine is primarily dominated by hydrocarbons, which account for ~94% in 2024 of total energy production. With a strong emphasis on hydrocarbons, Eni is the bet you would make if you believe that internal combustion engines will still be with us for a while.  However, Eni is also showing a gradual interest in renewables to stay sustainable; by 2030, renewable power will be expected to represent nearly 6% of Eni’s total energy mix, which is actually a huge jump from just ~1% in 2024. For dollar dodgers craving global energy grit, Eni’s your fortress.

INPEX (TICKER: IPXHY) 

Our second pick is INPEX, Japan’s premier oil and gas explorer, powering Asia’s energy needs through Ichthys LNG and global upstream assets. Why INPEX over U.S. peers? Its yen-denominated reserves and long-term LNG (Liquid Natural Gas) contracts with Japan/Korea/India deliver rock-solid fee-based revenues, in a variety of Asian currencies unaffected by the slumping US dollar. (The Ichthys project is located in Australia; it supplies LNG to a variety of Asian nations).  While many analysts predict that coal and petroleum demand will stagnate or shrink over the coming years, demand for liquid natural gas is expected to grow and grow, as burgeoning artificial intelligence will demand ever more power. 

From Macrotrends Q4 2025 updates, debt-to-equity sits at a pristine 0.12, among the lowest in the sector, with net cash position fueling buybacks and growth without strain. P/E ratio lands at 8.7 trailing (forward 7.2), a dirt-cheap bargain under 10 versus historical 12-15, backed by production ramps. Free cash flow yield exceeds 9% in late 2025, P/FCF around 6.5, converting sales to returns with superior efficiency. Dividend yield dominates at 2.91% (¥50 annual), payout ratio steady at 26% on earnings with 10%+ CAGR over a decade, fully covered through cycles. INPEX locks in yields, dollar-proofed via Asia’s insatiable LNG hunger and Japan’s energy security pivot.

Rio Tinto (Ticker: RIO) 

Lastly, our final pick: Rio Tinto, the Aussie-UK mining behemoth fueling iron ore, copper, and lithium for global infrastructure. If renewable energy and the building blocks of AI interest you more than oil and gas, this may be the pick for you. Rio produces a lot of the raw materials that go into the electrified machines of the future. 

Rio’s cyclical punch tempers with inelastic demand for EV metals and steel, priced in AUD/GBP that flex against dollar weakness. Macrotrends Q3/Q4 2025 metrics show debt-to-equity at a pristine 0.24, slashed from prior peaks, with net cash position enabling aggressive moves. P/E ratio compresses to 14.65 trailing Q4, absurdly cheap under 15, and leagues below peers, with ROE around 17% on efficiencies. Free cash flow yield sits at around 6.5% in Q4, though P/FCF around 29 could still warrant some skepticism. Yield clocks 4% with a payout ratio at 59%, and FCF coverage is rock-solid. Rio blends commodity torque with finances that laugh at dollar dives. Qualitatively, Rio Tinto’s business hedges on three pillars: iron ore (primary profit engine), which is mined from Western Australia and Canada, copper (growing quickly), which is sourced from Mongolia, Chile, and the USA, and aluminium/lithium (partially early-stage, but scaling), which is retrieved from Guinea, Argentina, and Canada. Growth sources can be found in upgrading the quality of iron ore mixes, expansion of copper, and potential energy transitions into aluminum/lithium.

The man, myth, and legend, Warren Buffett, warns, “You never know who is swimming naked until the tide goes out.” Here, we’ve scouted the shorelines; Eni, INPEX, and Rio Tinto stand tall, their hard assets and dividends armored against the dollar’s ebb. Load up abroad; your portfolio will thank you.