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Sunday, July 03, 2011

High Yield Brazil Utility Stocks

Brazil's economy grew at a rate of 7% last year, partially due to significant exports to China. Even Goldman Sachs is expanding its staffing in Brazil by 20%. Investors looking for growth and stability in Brazilian investments should take a closer look at Brazilian utility stocks, all of which appear on the Brazil stock list at WallStreetNewsNetwork.com.

CPFL Energia S.A. (CPL) is one of the largest companies that provides electric generation and distribution in Brazil is CPFL Energia. The company is composed of CPFL Brasil, CPFL Pirantininga, CPFL Paulista, CPFL Geracao and SEMESA.
The company is headquartered in Campinas, Sao Paulo, and is one of the top 50 largest Brazilian company in terms of sales.
The company has an installed generating capacity of 2,309 megawatts. In total, the consumer group revenues were approximately 31.4 percent from industrial customers, 19.6 percent from commercial customers, 37.3 percent from residential customers and 3.3 percent from rural customers, along with 8.4 percent from other customers.
The company also owns a couple dozen small hydroelectric generation facilities and one thermoelectric power plant.
The stock has a forward price to earnings ratio of 17.3 and a a yield of 4.4%.

Companhia de Saneamento Basico do Estado de Sao Paulo [SABESP] (SBS) is a utility company that operates out of Brazil, providing water and sewage services to residential, commercial and industrial customers in over 350 municipalities in Sao Paulo, including the City of Sao Paulo.
The services it provides are basic sanitation services, including abstraction, treatment, processing, distributing, and the collection and treatment of sewage.
The largest sector of revenue for the company is the Sao Paulo Metropolitan Regional and Regional Systems.
The company has over 15,000 employees.
In terms of water treatment, the company has approximately 200 treatment facilities, of which the eight largest in the Sao Paulo Metro Region accounts for 72 percent of all the water produced. All the water treated by the company receives fluoridation treatment.
The Sewage Treatment and Disposal aspect of the business collects about 63 percent of all the sewage collected in the State of Sao Paulo. After the water has been treated, it is discharged into inland waters and the Atlantic Ocean. Currently, Sabesp has over 400 sewage treatment facilities and eight ocean outfalls.
The stock has a forward P/E of 7.8 and a yield of 4%.

Companhia Energetica de Minas Gerais [CEMIG] (CIG) is the largest combined power generator and distributor in Brazil, Companhia Energetica de Minas Gerais, known as CEMIG, has over 50 power plants in operation, with a generating capacity of 6,000 megawatts. The company also owns cable television and internet and telecommunications services.
Over half of the stock in Cemig is owned by Minas Gerais, which his traded on the Bovespa and the New York Stock Exchange.
The power generation of the company is produced through 51 hydroelectric plants, four thermoelectric plants and one wind farm. Eight of the hydroelectric plants account for about 83 percent of the installed electric capacity of the company. The company also has over 30 substations, with around 100 transformers that have a transformation capacity of approximately 15,000 megavolts.
The company transmits both its own energy, and the energy that is purchased from Itaipu. The company has a dozen industrial consumers, who accounted for nearly 20 percent of the total volume of electricity the company sold.
The stock has a forward P/E of 12.3 and pays a yield of 5.3%.

Companhia Paranaense de Energia [COPEL] (ELP), also known as COPEL, is an electric power company that specializes in the business of transmission, distribution and generation of electric power in Brazil’s Parana state. The company also provides telecommunication and information technology services through services it has developed with various partnerships. The company has over 15 hydroelectric plants and one thermoelectric plant.
The company is made up of five subsidiaries, Copel Geracao, Copel Transmissao, Copel Distribuicao, Copel Telecomunicacacaes and Copel Participacaes.
The generation sector of the company is done through 18 power plants. The system relies on 12 substations, 11 of which are remote-operated.
The stock has a forward P/E of 11.6 and a yield of 0.7%.

A free list of Brazil stocks can be found at WallStreetNewsNetwork.com, which can be downloaded, updated, and sorted. Also, don't forget to check out the articles on other Brazil industries, including Brazil Telecommunications Stocks and Brazil Financial Stocks.

Disclosure: Author did not own any of the above at the time the article was written.

By Stockerblog.com

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