Right now, the U.S. dollar is seeing strength we haven’t seen in some time. This has created a series of headwinds that many multinational organizations have had to battle. That said, a weak U.S. dollar has historically been good news for big American multinational companies that get a large share of their sales and profits from foreign markets. On this list, we will look at three stocks to buy for a weak dollar, to understand how investors can profit from this situation.

A weak dollar makes U.S.-produced goods and services cheaper for foreign buyers, while at the same time making foreign-produced goods more expensive for Americans. That gives U.S. exporters a pricing advantage over their foreign competitors and boosts the bottom line of U.S.-based companies when they translate their foreign earnings back into dollars.

So, it’s no surprise that investors tend to bid up the stock prices of companies with strong international businesses when the dollar weakens.

As the dollar tumbles, here are three companies you need to keep an eye on.

Coca-Cola (KO)

Coca-Cola (NYSE:KO) is one of the best stocks to buy for a weak dollar. Although the company deserves credit for its North American business, it is also a substantial brand internationally. In fact, Coca-Cola generates more than 60% of its revenue from outside the United States. As the dollar weakens, Coca-Cola’s products become more affordable for consumers in other countries. This increased demand can lead to higher profits for Coca-Cola. In addition, Coca-Cola has a strong balance sheet and generates a lot of cash flow.

Despite concerns related health and a broader trend toward natural products, Coca-Cola’s broad product portfolio guarantees its relevancy for many years. Coca-Cola’s products include non-sugary alternatives such as water, coffee, and tea; sugary soft drinks such as Coca-Cola, Sprite, and Fanta; and energy drinks such as Powerade and Monster. Coca-Cola also has a strong presence in emerging markets such as India and China.

In addition, Coca-Cola’s bottling system provides it with a competitive advantage. Coca-Cola can maintain control of its product quality while still allowing independent bottlers to shoulder most of the investment burden. As a result, Coca-Cola is well-positioned to weather any short-term challenges and remain a long-term winner.

Finally, the company is a Dividend King, meaning it has increased its dividend payments for 50 consecutive years. Coca-Cola is also a defensive stock, which performs well during economic downturns. For these reasons, Coca-Cola is often considered a safe investment and is a popular choice for income investors.

McDonald’s (MCD)

McDonald’s (NYSE:MCD) is an icon of globalization. It has achieved this success by understanding the local cultures and customs of the many markets the fast food chain has expanded to. In these new markets, McDonald’s has successfully adapted its menu and operations to suit the local markets, which is why it makes this list of stocks to buy for a weak dollar.

For instance, McDonald’s serves vegetarian burgers in India due to the large Hindu population. In China, it offers rice as an alternative to french fries. McDonald’s also tailors its advertising to appeal to local culture and values. In France, for example, McDonald’s emphasizes the quality of its food, while in the United States, it focuses on convenience and value.

In Q2, the fast food giant reported global same-store sales growth of 9.7%, while U.S. same-store sales increased by 3.7% in the quarter. What is amazing is that the company reported such stellar numbers despite Russian location closures and Covid-related restrictions in China.

McDonald’s international segment reported an increase in their same-store sales of 13%, with France and Germany contributing the most. Executives believe the company’s international division grew due to taking market share from other fast-food chains.

Over the past decades, McDonald’s has been able to branch out into many markets and has a good foothold in these countries. This means that McDonald’s is more protected against economic downturns and will continue to expand in the future. The company is worth investing in if you are looking for stocks to buy for a weak dollar, as it has very good defensive characteristics and a sound international presence.

Proctor & Gamble (PG)

Proctor & Gamble (NYSE:PG) is one of the world’s largest consumer staples companies, with a vast portfolio of well-known brands, including Tide, Gillette, and Pampers. The company is a defensive play for investors seeking to protect their portfolios from market turbulence, as demand for Proctor & Gamble’s products is relatively insensitive to economic conditions.

A significant portion of the company’s revenue is generated from overseas operations, and a decline in the dollar’s value would boost Proctor & Gamble’s profitability. In 2022, Proctor & Gamble made a staggering $36.5 billion in the U.S., but global net sales amount to an even higher figure of $80.2 billion. While Proctor & Gamble may not be the fastest-growing company in the market, it is a stalwart defensive play that should be considered by any investor looking to safeguard their portfolio.

Procter & Gamble has a strong dividend history. The company has raised its distributions for 66 consecutive years, making it a Dividend King. On average, the company has increased its payout by 6% over the last five years. Aside from its stable earnings history, this provides income investors with an excellent payout, distinguishing it from others.

The macroeconomic outlook for the global economy is concerning, to the point where experts are warning about a global supply chain crisis, rising interest rates, and high inflation. Procter & Gamble has proven it can handle these challenges on many occasions and still reward investors.

On the publication date, Faizan Farooque did not have (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.