My Three Favorite Latin America Stocks With Good Dividends And Cheap Valuation

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Apr 20, 2013
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Yesterday I published a list of the best-yielding Asian dividend stocks with a low forward price to earnings ratio. Today I'd like to take a look at stocks in the Latin America region.

It’s a hopeful region to seek for growth. If you have no idea where to find good yields in your own country, you should start to look aboard. But be careful, foreign stocks have higher risks because of the additional currency risk and the small diversified companies.

My criteria are still:



Market Capitalization over $10 billion USD

Positive Dividend Yield

Forward P/E below 15

Sixteen stocks fulfilled the mentioned criteria of which eight have a current buy or better recommendation.

Here are my favorite stocks:

Petroleo Brasileiro (PBR) has a market capitalization of $107.75 billion. The company employs 81,918 people, generates revenue of $144.103 billion and has a net income of $10.931 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $28.019 billion. The EBITDA margin is 19.44% (the operating margin is 11.73% and the net profit margin is 7.59%).

Financial Analysis: The total debt represents 28.97% of the company’s assets and the total debt in relation to the equity amounts to 57.22%. Due to the financial situation, a return on equity of 6.42 % was realized. Twelve trailing months earnings per share reached a value of $1.69. Last fiscal year, the company paid $0.48 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.76, the P/S ratio is 0.76 and the P/B ratio is 0.61. The dividend yield amounts to 6.30% and the beta ratio has a value of 1.44.

Telefonica Brasil (VIV) has a market capitalization of $29.05 billion. The company employs 19,614 people, generates revenue of $16.814 billion and has a net income of $2.206 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6.296 billion. The EBITDA margin is 37.44% (the operating margin is 21.26% and the net profit margin 13.12%).

Financial Analysis: The total debt represents 11.39% of the company’s assets and the total debt in relation to the equity amounts to 17.91%. Due to the financial situation, a return on equity of 10.12% was realized. Twelve trailing months earnings per share reached a value of $1.96. Last fiscal year, the company paid $1.40 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.17, the P/S ratio is 1.66 and the P/B ratio is 1.30. The dividend yield amounts to 5.64% and the beta ratio has a value of 0.64.

Vale (VALE) has a market capitalization of $82.56 billion. The company employs 70,785 people, generates revenue of $47.694 billion and has a net income of $6.255 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $13.619 billion. The EBITDA margin is 28.55 % (the operating margin is 19.34% and the net profit margin 13.11%).

Financial Analysis: The total debt represents 24.49% of the company’s assets and the total debt in relation to the equity amounts to 43.37%. Due to the financial situation, a return on equity of 9.33% was realized. Twelve trailing months earnings per share reached a value of $1.38. Last fiscal year, the company paid $1.15 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.63, the P/S ratio is 1.75 and the P/B ratio is 1.11. The dividend yield amounts to 5.16% and the beta ratio has a value of 1.47.

Take a closer look at the full list of cheap Latin America dividend stocks. The average P/E ratio amounts to 14.04 and the forward P/E ratio is 10.08. The dividend yield has a value of 2.87%. The P/B ratio is 1.88 and the P/S ratio is 2.29. The operating margin amounts to 22.95% and the beta ratio is 1.21. Stocks from the list have an average debt to equity ratio of 1.34.

Large capitalized stocks from Latin America with low forward P/Es and good dividend yields originally published at "long-term-investments.blogspot.com."

Related stock ticker symbols:

SAN, VIV, EC, VALE, BCH, BSAC, CIB, BBD, BAP, AMX, PBR-A, ENI, PBR, EOC, ITUB, GGB

Selected Articles:

· 19 Cheap Asian Large Cap Dividend Stocks

· 5 Canadian And 7 American Stocks With More Than 100 Years Of Dividend Payments

· 20 Basic Material Dividend Stocks With Top Yields And Low Volatility

· Best Dividend Paying Stock List

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