Investing In South America - Brazilian Stocks (Part 3)

The land Of Double-Digit Dividends & Single-Digit P/E

Brazilian Stocks

Even if investors warmed up a little to the Lula presidency (from the low point of predicting a communist takeover), a general focus on the “Magnificient 7” US tech stocks has caused the EM market, and Brazilian markets in general to trade at a discount.

The strong presence of Brazil in commodities, fossil fuels, and heavy industry, all out of favor, did not help.

As a result, this is a perfect hunting ground for value investors looking for low P/E, special situations, and double-digit dividends.

For this South America Article series, I will not make a detailed report for each company, at least not yet.

I will provide my subscribers with a reason for the Brazilian stocks that I either own or have on my watchlist/wishlist.

The common feature is usually a P/E ratio in the 2-15 range, ideally single digit, and dividend yields in the 6-25% range. As well as at least one special situation stock + a high-quality hydropower utility stock that can be used as an inflation protection.

For non-subscribers, here is the list:

• Petrobras

• Braskem

• Minerva

• BrasilAgro

• Copel

• Vale

• NuBank