Are Brazilian stocks worth calling on? The growth in the number of cellular phones has increased by more than 17% in the last year, according to Teleco. Brazil has several telecom companies which are publicly traded, most of which trade on the New York Stock Exchange. According to the free list of Brazil stocks at WallStreetNewsNetwork.com, there are almost half a dozen Brazilian telecom companies that pay yields in excess of 1.5%.
Oi (TNE), based in Rio De Janeiro, was formerly called Telemar, but is also still called Telemar Norte Leste S.A., is the largest landline telephone company in Brazil and the second biggest in Latin America, behind Mexican América Móvil (AMX), based on both the number of lines in service and on revenues.
The company has over 22 million land lines, more than 31 million wireless customers, 4 million ADSL subscribers and approximately 44,000 employees. Oi is Portuguese for "Hi". The stock has a forward P/E of 8.4 with a fairly generous yield of 3.2%.
Brasil Telecom S.A. (BTM) is one of the major telecommunications companies in Brazil is Brasil Telecom, which is headquartered out of Brasilia. It is one of only three land-line companies in Brazil since the break-up of Telebras. The company was originally called Tele Centro Sul, and its service covers Acre, Rondonia, Goias, Tocantins, Mato Grosso, Mato Grosso do Sul, Parana, Santa Catarina, Rio Grande do Sul and the Brazilian Federal District. The company currently has over 20,000 employees.
Brasil Telecom provides a vast number of services to its subscribers, including local services, installation, monthly subscriptions, public telephones, supplemented local services, long-distance services, intrastate services, international long-distance, internet, multimedia, data transmission and wireless services.
The stock trades at five times forward earnings and generates a yield of 1.9%.
Net Servios de Comunicao (NETC), also known as Net S.A., is the largest cable television provider in Latin America, having over 23.5 million subscribers. In addition to the television service, the company offers broadband internet services, with 12.6 million, as well as telephone over cable under the Net Fone via Embratel name, with 2.3 million subscribers.
In 2006, the company began to work with Embratel, to begin the process of integrating Voice over IP technology to allow subscribers to make local, long-distance and international calls from any telephone.
The core of the company’s business is in the pay-television service, which includes cable and pay-per-view. This service is available in many cities in Brazil, including Sao Paulo, Rio de Janeiro, Belo Horizonte, Porto Alegre, Recife, Brasilia, Goiania, Curitiba and Florianopolis.
This service comes to customers in three major packages, digital, premium and advanced. The digital cable service provides high quality broadcasting and video-on-demand services.
The stock has a forward P/E of 8.5.
Telecomunicacoes de Sao Paulo S.A. (VIV), also known as Vivo Participações S.A. and Telesp, is a communications company that operates in the Sao Paulo State in Brazil. The company generates revenue in excess of $5 billion each year. The parent company for Telesp is Telefonica.
Telesp provides fixed-line telecommunication that include local services, measured service, public telephones, intraregional and international long-distance, multimedia services and network services that include interconnection and leasing of facilities.
The company also provides services that allow cellular service providers and other telecommunication companies to have the ability to use its network.
The local service of the company includes measuring service on all calls that originate or end in the local area. Also, Telesp has a telephone service concessionaire to offer local services to other states, including Sergipe, Espirito Santo, Rio Grande do Sul, Parana, Santa Catarina and parts of Rio de Janeiro. The company also provides local telephone services in Para, Amapa, Rondonia, Maranhao, Tocantins and Acre. The business employs over 77 million customers.
The stock has a P/E of 8.6 and based on the last two dividend payments, the stock yields about 10%.
TIM Participacoes S.A. (TSU), also known as TIM Brasil, is the only company in Brazil that offers cellular service throughout the country, TIM Participacoes, uses its subsidiaries, TIM Celular S.A. and TIM Nordeste S.A., to get cellular service across Brazil.
The company is also the largest Global System for Mobile communications operate in the country, in both terms of clients and revenues. Currently, the company has over 51 million customers.
TIM Participacoes is a wireless provider throughout Brazil, which uses a global system for its mobile communications technology. In four of the areas it covers, TIM offers time-division multiple access technology as well as GSM. The company also has value services that include text messaging, multimedia messaging services, Blackberry services, video call and wireless application protocol.
The company also provides interconnection services to fixed line and mobile providers.
The stock has a forward P/E of 15.4 and a yield of 2.6%.
For a free list of all the dividend paying Brazil stocks, which can be downloaded, sorted, and updated, go to WallStreetNewsNetwork.com.
Disclosure: Author did not own any of the above at the time the article was written.