SID The Kid: Look At This Steel Stock

Companhia Siderurgica Nacional (NYSE: SID) is a major steel company in Brazil, and Brazilian equities should have a place in everyone's portfolio, especially if it's yielding, say, over 6%.SID, as it's known on Wall Street, has a market cap around $27 billion, and is a pure play on the booming Brazilian economy. As Brazil continues to ramp up infrastructure spending for the upcoming World Cup and Olympics it is hosting in a few years, steel is expected to be the primary beneficiary. Along with Gerdau SA ADR (NYSE: GGB), SID's earnings should benefit from increased government and private sector spending.It should also benefit from a middle class that is looking to enjoy the fruits of their labor, as they drive more cars, move into better housing, and travel more. Steel is a major component in housing, autos, and rails, and SID should benefit.It also pays investors to wait, yielding 6.6% at current share prices. This is a remarkable return on an investment, then factor in the potential for sharp capital appreciation, and I would expect SID shares to trade north of $20 by the end of the year.SID reports earnings November 4, so that definitely should be a date on traders minds. Factor in a low earnings multiple, at just over 5 times forward earnings, a strong dividend yield, and emerging market growth, SID has a hat trick going for it.Not unlike a certain hockey player with the same name.