Is Brazil Ripe for a Rebound? Top Brazilian Income Stocks
The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.
Holders of Brazil stocks have been suffering. During the last couple years, even though the S&P 500 was up almost 20%, the iShares MSCI Brazil Index ETF (EWZ) dropped by over 31%. Maybe a recovery is in the works. After all, Brazil is still the fifth largest country in the world by population and area, and the sixth highest nominal gross domestic product in the world. The country has huge oil reserves and is a world leader in alternative energy, primarily ethanol generated from sugarcane.
If you think it's time for a rebound, there are 25 Brazil stocks to choose from that trade in the US, according to the free list of Brazil stocks at WallStreetNewsNetwork.com. More than a dozen of the companies pay dividends with yields ranging from 0.5% to 7.8%.
Of course, if you don't want to pick and choose, you can stick with the iShares MSCI Brazil ETF, which owns a very diversified portfolio of Brazilian stocks. The average price to earnings ratio is 14 and the ETF even pays a yield of 2.8%.
If you like to make your own decisions on stock choices, you may want to take a look at Telefonica Brasil, S.A. (VIV), the large Brazilian telecom company, which pays a nice yield of 4.4%, and dividends have generally been paid semi-annually for over a dozen years. The stock trades at 11.4 times forward earnings.
Cia Energetica de Minas Gerais (CIG) is another example. It is an electric utility that provides electricity primarily in Minas Gerais, Brazil. The stock trades at 6.4 times forward earnings, and pays a very high yield of 5.4%.
Other dividend paying Brazil stocks include Ultrapar (UGP) yielding 2.4% and Gerdau (GGB) paying a yield of 2.0%.
To see other Brazil stocks, many of which pay dividends, go the WallStreetNewsNetwork.com to access the list of Brazil stocks that can be downloaded, sorted, and updated. You can also find more Brazil stock information in the book Investing in Brazil Stocks: Get Rich from the South American Giant.
Disclosure: Author didn't own any of the above at the time the article was written.