All Eyes on FIFA World Cup Soccer Games in Brazil: Anyone Looking at Brazil Stocks?

The 2014 FIFA World Cup is the 20th world championship tournament for soccer (referred to as football in most other countries outside the US), which is taking place in Brazil for the next few weeks. The games run from June 12, finishing up on July 13. Think these games should help the Brazilian economy? Then how about Brazil stocks.

Brazil used to be considered the best of the BRICs, with BRIC referring to he four countries with strong growing economies: Brazil, Russia, India, and China. The iShares MCSI Brazil Capped ETF (EWZ) is up three and a half points just in the last week. However, over the last two years, the Standard and Poor's 500 Index has risen well over 40%, whereas the Brazil ETF has a negative return over the same time period. Now might be an interesting opportunity for contrarians.

The nice thing about Brazilian stocks is that there are a couple dozen that trade on US stock exchanges, according to the free list of Brazil stocks at WallStreetNewsNetwork.com. In addition, most of these Brazilian stocks pay dividends. Anyone who has read my previous articles knows that I really like dividend paying stocks. Dividends return your invested capital faster and help to reduce volatility.

One of the highest yielding Brazil stocks is Banco Bradesco (BBD), which pays a generous yield, including special dividends, of 6.8%. As an added bonus, it pays its dividends monthly. This Brazilian bank trades at 1.2 times trailing earnings, slightly better than the industry average price to earnings ratio of 11.3. It has a forward PE ratio of 9.

Bradesco's earnings for the latest quarter were up 18% on a revenue rise of 13%. The company was added to the Zack's Rank #1 Strong Buy List on May 16.

Another Brazilian stock that pays a decent dividend is Telefonica Brasil (VIV), which has a yield of 7.7%. Last year, the company paid out a dividend three times, and so far this year, the company has had three dividend payouts. The stock trades at 15 times trailing earnings, and 13 times forward earnings. Revenues for the latest quarter were up slightly, however earnings dropped 18%.

One Brazil company that is doing very well is Gerdau (GGB), which is in the steel business. The yield is relatively low at 1.9% but the earnings are high. Earnings for the latest quarter were up an amazing 168% on a revenue increase of 15%. The stock trades at 13 times forward earnings and a very favorable  6 times trailing earnings.

There are several other Brazil stocks with good earnings and adequate yields, which can be found at WallStreetNewsNetwork.com. Around 20 of these stocks pay dividends. I'm not sure who is going to win the World Cub, but I think several Brazil stocks will be winners.

Disclosure: Author didn't own any of the above at the time the article was written, but may purchase a Brazil ETF in the next week if prices drop low enough. 

By Stockerblog.com

Is Brazil Ripe for a Rebound? Top Brazilian Income Stocks

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.

By Stockerblog.com

Brazil's Parsimony Economy

Brazil's policy makers recently said 'additional monetary flexibility should be conducted with parsimony.' In case you aren't sure what parsimony means, according to some online dictionaries, parsimony is thrift, unusual or excessive frugality, and the quality of being careful with money. The Brazil economy has been slow in terms of recovery, so the country's central bank has decided to drop its benchmark interest rate in July. For the first quarter of this year, Brazil's economy grew by only 0.2%, significantly lower than what analysts predicted. The government's state development bank BNDES is increasing low interest rate loans and, even better news, taxes on consumer and industrial goods have been reduced, in order to help spur on the economy.

So how have Brazil stocks been performing? Terrible! During the last year, even though the S&P 500 was up a couple percent, the iShares MSCI Brazil Index ETF (EWZ) took a dive, tanking about 28%. If you think it's time for a rebound, there are about 25 Brazil companies that trade in the United States, according to the free Brazil stocks list at WallStreetNewsNetwork.com. More than half of the companies have yields in excess of 3%.

Cia Energetica de Minas Gerais (CIG) is one example. It serves electric energy primarily in Minas Gerais, Brazil. The stock trades at 12 times forward earnings, and pays a decent yield of 3.6%. Earnings the latest quarter ending March 31 were up 20% on a 15.1% rise in revenues.

Here's a contrarian stock for you: Gafisa S.A. (GFA), a developer of residential buildings including luxury residences. The company trades at 15 times forward earnings. Earnings for the latest quarter were down slightly, however, revenues were up 27%. Sporadic annual dividends have been paid during the last few years.

Telefonica Brasil, S.A. (VIV), the large Brazilian telecom company, pays a substantial yield of 4.4%, and dividends have usually been paid semi-annually for over 12 years. The stock trades at nine times forward earnings. Quarterly earnings were up an incredible 128.9% on an amazing 109.2% boost in revenues.

To see other Brazil stocks, almost all of which pay dividends, go the WallStreetNewsNetwork.com to access the list of Brazil stocks that can be downloaded, sorted, and updated.

Disclosure: Author didn't own any of the above at the time the article was written.

By Stockerblog.com

Top Financial Stocks in Brazil

According to the International Monetary Fund and the World Bank, Brazil has the largest economy in Latin America, the world's eighth largest economy, and the seventh largest in purchasing power parity. Fortunately for US investors, there are plenty of Brazilian stocks that trade on the New York Stock Exchange. Brazilian financial stocks is a great way to invest in this country.

One popular way to invest in Brazilian stocks and have diversification, is through the Brazil exchange traded fund, iShares MSCI Brazil Index (EWZ), which invests 95% of its assets in stocks, including the financial companies, traded primarily on the Bolsa de Valores de So Paulo. The fund pays a yield of 3.3% based on last year's annual dividend payment and has a one year return of 22.9%.

WallStreetNewsNetwork.com has a list of over 25 Brazilian stocks, several of which are fnancals. One example is Banco Bradesco (BBD), which provides banking and financial services and products to individuals, companies and international corporations around the world. It is the largest insurance and pension provider in Brazil, based on insurance premiums, pensions plan contributions and income from saving plans. With a head office in Osasco, Banco Bradesco has been in existence for over 60 years and is considered the leader in Brazilian lending. Their private sector branch and service network is the largest in Brazil. The company as nearly 3,000 branches across the country and offers services which include Internet banking, insurance, pension plans, annuities, credit card services and free Internet access for customers. In addition to its branches in Brazil, the company has branches in New York, Grand Cayman and Nassau, Luxembourg, Buenos Aires, and Tokyo. The stock trades at 9.5 times forward earnings, and pays a yield of 0.6%.

Itau Unibanco Banco Holding SA (ITUB) is the result of the merger of Banco Itaú and Unibanco, which occurred on November 4, 2008, making it the largest bank in South America. The company also owns Investimentos Itau. The company has approximately 50,000 employees. Banco Itau provides a wide variety services including small business banking, credit cards, retail banking, asset management, and brokerage products. They have about 13 million customers. The stock has a forward price to earnings ratio of 9.5, and a yield of 0.4%.

Gafisa S.A. (GFA) is one way to participate in the Brazilian real estate market. It is one of the largest builders in Brazil, and does about 90% of its business in Sao Paulo and Rio de Janeiro. The stock has a forward P/E of 6.3.

For other Brazil stocks, a free list is available at WallStreetNewsNetwork.com, which can be downloaded, sorted, and updated.

Disclosure: Author did not own any of the above.

By Stockerblog.com

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 Inácio 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