The US dollar has long been considered a safe haven for investors around the world. As the dominant global reserve currency and a pillar of the world economy, the dollar once seemed untouchable. However, that image is starting to shift. Persistent inflation in the US, mounting national debt, rising interest expenses, and shifting geopolitical dynamics have all contributed to a weakening dollar. For international investors, a depreciating dollar can have a significant impact on returns — making it essential to consider how to protect your portfolio against this risk.
Why the Dollar Is Under Pressure
Since early 2024, the dollar has been losing value against a broad basket of currencies. This is largely due to interest rate cuts by the US Federal Reserve aimed at supporting a slowing economy. Meanwhile, other central banks — such as those in Europe or Switzerland — have maintained or even raised their rates, making their currencies more attractive to global investors. Added to this is growing concern over the sustainability of US fiscal policy, further weighing down the dollar’s appeal.
For non-US investors, the impact of a falling dollar on portfolio returns can be stark. Imagine investing in a US stock that gains 10% over the year. If the dollar loses 8% of its value against your local currency during that same period, your net return is almost wiped out. In some cases, you could even suffer a loss. Currency risk is often underestimated, yet it plays a direct role in determining actual returns — especially for those thinking in euros, Swiss francs, or Norwegian kroner.
Which Currencies Offer More Stability?
To counterbalance this risk, it pays to look at currencies that have shown more resilience. The Swiss franc remains a traditional safe haven, backed by conservative monetary policy and a strong financial system. The Norwegian krone is another strong candidate, supported by Norway’s energy exports and low national debt. The Canadian dollar is also attractive, tied to commodity wealth and a solid banking structure. Even the euro — despite its internal challenges — currently offers greater stability in comparison to the US dollar.
Investing in stocks denominated in these more stable currencies can provide natural protection against further dollar depreciation. Not only do you benefit from potential capital appreciation in local currency terms, but you also hedge against currency losses when converting back to your base currency.
5 High-Dividend Stocks in Alternative Currencies
One of the best strategies to offset currency risk is to invest in international stocks that not only offer currency diversification but also pay strong dividends. Here are five such companies, all listed in Norwegian kroner:
Aker ASA (Ticker: AKER) – Dividend yield: 7.89%
Operating in the financial sector, Aker is a diversified investment company based in Norway. It’s known for strong governance and consistent returns.
MPC Container Ships (Ticker: MPCC) – Dividend yield: 22.19%
Active in the industrial shipping sector, this company benefits from global demand in container transport and rewards investors with exceptional dividends.
BW LPG Ltd (Ticker: BWLPG) – Dividend yield: 8.92%
A major player in the energy sector, transporting liquefied petroleum gas across global markets. Its earnings and dividends benefit from energy price movements.
Wallenius Wilhelmsen Logistics ASA (Ticker: WAWI) – Dividend yield: 41.84%
A standout in the logistics industry, offering one of the highest dividend payouts on the market. This makes it especially attractive for income-focused investors.
Aasen Sparebank (Ticker: AASB) – Dividend yield: 7.32%
A smaller, regional financial institution with a conservative profile, yet a reliable dividend payer supported by Norway’s stable banking sector.
These companies not only offer impressive dividend returns, but are also denominated in a currency that has shown relative strength. This makes them a smart choice for investors looking to reduce their dollar exposure while maintaining or even increasing income streams.
Time to Rethink Portfolio Allocation
In today’s shifting financial landscape, diversification is more important than ever. While there’s no need to abandon the dollar entirely, relying on it as your sole base currency is increasingly risky. Incorporating assets denominated in stable currencies like the Norwegian krone, Swiss franc, or Canadian dollar can provide more consistent returns in real terms.
These high-dividend international stocks offer a compelling opportunity: solid yield, potential growth, and protection against unfavorable exchange rate movements. For investors willing to look beyond US markets, they represent a forward-looking strategy that balances income, stability, and diversification.
Sometimes, building a stronger portfolio simply starts with identifying a weak link — and having the courage to choose something different.
