Tuesday, November 02, 2010

Spotlight on a 7.9% Yield Brazil Stock

On Sunday, October 31, Dilma Rousseff was elected as Brazil's first woman president, causing Brazilian stocks to rise. In the last couple days since the election, Petrobras (PBR) was up 1.8% and the iShares MSCI Brazil Index (EWZ) ETF was up 2.8%. It is expected that Rousseff would follow the same policies as current President Luiz InĂ¡cio Lula da Silva.

Brazil has done extremely well over the last decade from an economic standpoint, with unemployment way down and per capital income way up, reduced poverty and an export boom. With a track record like this, investors are taking a close look, and income investors can find plenty of Brazil dividend payers that trade on the New York Stock Exchange, twenty according to WallStreetNewsNetwork.com.

CPFL Energia S.A. (CPL) is one example of a company that is participating in Brazil's growth. This Sao Paulo based electric utility has 6.6 million customers. The stock trades at 13.5 times forward earnings and pays a generous yield of 7.9%, payable semi-annually. The dividend payout was recently increased.

CPFL's dividend payouts of $905 million is well covered by the $1.58 billion cash flow. The stock has $5.70 in cash per share. The company earnings announcement will be held November 10, 2010. Even Jim Cramer likes the stock, who said on October 15, "I like CPFL Energia S.A. It's got a better yield. Let's just stick with quality."

To see all twenty of the dividend paying Brazil stocks, along with several of the non-dividend payers, go the WallStreetNewsNetwork.com. For more information about investing in Brazil, you might want to get the book, Investing in Brazil Stocks: Get Rich from the South American Giant (it was written by me a couple years ago).

Disclosure: The author did not own any of the above stocks at the time the article was written.

By Stockerblog.com

No comments: