Bookmark and Share

1/28/2013

18 Growth Stock Ideas From The Booming Emerging Markets | Best BRIC Dividend Picks

Dividend stocks with solid growth from the BRIC nations originally published at "long-term-investments.blogspot.com". Over the recent decades, we have seen a significant change in the economic forces. China is getting more and more important in the global economic and is responsible for half of the world's economic growth. 

A large trading gap was created between the emerging markets and the developed nations. As a result, the old economies created huge mountains of debt and growth slowed while the unemployment rates exploded. 


The emerging markets have shown an opposite image - low debt at high growth. Unknown companies became to multinational super companies in only a decade and made really unknown people very rich.


Today I like to show you some of the best growth picks with dividend payments from the popular BRIC nations. BRIC is a abbreviation for the countries Brazil, Russia, India and China. All these countries have a huge citizen base and they have very attractive economic fundamentals to grow further and create faster wealth for the people.


My screening criteria are:

Headquartered in a BRIC country
- Market capitalization over $2 billion
- 5 year expected EPS growth over 5%
- Positive dividend yield

Seventeen companies fulfilled these criteria of which one stock has a high-yield and twelve are recommended to buy.

Here are my favorite stocks:
(Subscribe my Blog via RSS Feed or E-Mail. Alternative, you can follow me on Facebook or Twitter)

PetroChina (NYSE:PTR) has a market capitalization of $261.77 billion. The company employs 552,810 people, generates revenue of $322.145 billion and has a net income of $23.464 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $51.583 billion. The EBITDA margin is 16.01 percent (the operating margin is 9.11 percent and the net profit margin 7.28 percent).

Financial Analysis: The total debt represents 16.60 percent of the company’s assets and the total debt in relation to the equity amounts to 31.75 percent. Due to the financial situation, a return on equity of 13.70 percent was realized. Twelve trailing months earnings per share reached a value of $10.36. Last fiscal year, the company paid $5.26 in the form of dividends to shareholders.


Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.80, the P/S ratio is 0.82 and the P/B ratio is finally 1.62. The dividend yield amounts to 3.50 percent and the beta ratio has a value of 1.10.



”Long-Term
Long-Term Stock History Chart Of PetroChina (PTR)
”Long-Term
Long-Term Dividends History of PetroChina (PTR)
”Long-Term
Long-Term Dividend Yield History of PetroChina (PTR)

Companhia de Bebidas Das Americas (NYSE:ABV) has a market capitalization of $143.09 billion. The company employs 46,503 people, generates revenue of $13.369 billion and has a net income of $4.297 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6.462 billion. The EBITDA margin is 48.34 percent (the operating margin is 43.17 percent and the net profit margin 32.14 percent).


Financial Analysis: The total debt represents 8.92 percent of the company’s assets and the total debt in relation to the equity amounts to 16.07 percent. Due to the financial situation, a return on equity of 34.58 percent was realized. Twelve trailing months earnings per share reached a value of $1.54. Last fiscal year, the company paid $0.91 in the form of dividends to shareholders.


Market Valuation: Here are the price ratios of the company: The P/E ratio is 29.66, the P/S ratio is 10.54 and the P/B ratio is finally 11.31. The dividend yield amounts to 3.19 percent and the beta ratio has a value of 0.94.



”Long-Term
Long-Term Stock History Chart Of Companhia de Bebidas Das Americas (ABV)
”Long-Term
Long-Term Dividends History of Companhia de Bebidas Das Americas (ABV)
”Long-Term
Long-Term Dividend Yield History of Companhia de Bebidas Das Americas (ABV)

China Unicom (NYSE:CHU) has a market capitalization of $36.81 billion. The company employs 215,450 people, generates revenue of $33.626 billion and has a net income of $679.55 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $10.194 billion. The EBITDA margin is 30.32 percent (the operating margin is 2.58 percent and the net profit margin 2.02 percent).


Financial Analysis: The total debt represents 22.99 percent of the company’s assets and the total debt in relation to the equity amounts to 50.93 percent. Due to the financial situation, a return on equity of 2.05 percent was realized. Twelve trailing months earnings per share reached a value of $0.36. Last fiscal year, the company paid $0.16 in the form of dividends to shareholders.


Market Valuation: Here are the price ratios of the company: The P/E ratio is 42.88, the P/S ratio is 1.11 and the P/B ratio is finally 1.11. The dividend yield amounts to 1.01 percent and the beta ratio has a value of 0.72.



”Long-Term
Long-Term Stock History Chart Of China Unicom (CHU)
”Long-Term
Long-Term Dividends History of China Unicom (CHU)
”Long-Term
Long-Term Dividend Yield History of China Unicom (CHU)


Take a closer look at the full list of the most attractive Emerging Markets growth stocks. The average P/E ratio amounts to 24.99 and forward P/E ratio is 16.18. The dividend yield has a value of 1.67 percent. Price to book ratio is 3.55 and price to sales ratio 2.27. The operating margin amounts to 18.89 percent and the beta ratio is 0.74. Stocks from the list have an average debt to equity ratio of 1.02.

Here is the full table with some fundamentals (TTM):

Best BRIC Growth Stocks (Click to enlarge)

If you like this list, please give us a Facebook Like, make a tweet or post a comment below!

Related stock ticker symbols:
CPL, MBT, PTR, GGB, ABV, CHA, TSU, IBN, TTM, INFY, LFC, CHU, WIT, HNP, BBD, ITUB,  CBD

Selected Articles:

* I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I receive no compensation to write about any specific stock, sector or theme.



2 comments:

  1. Anonymous1/28/2013

    For investors, it is important to have holdings in different sectors, industries and currencies. Some big multinational companies like Procter and Gamble (PG) or General Electric (GE) are well diversified and fulfill those criteria. But these companies also have a weakness: They generate little revenue in emerging markets. In order to eliminate this deficit, investors should buy stocks based in those regions.

    ReplyDelete
  2. Basically agree with one big if, one has a ten or more years before considering retiring or plans to be an active trader. Numbers speak for themselves, it's the unpredictable political climate one needs to factor into their investment in this part of the world by first realizing that the USA is looked down on as being gullible and semi-barbaric. I would say, it more a trader's market their right now.

    ReplyDelete

Do you have any questions or notes to this article?
Please let me know your thoughts and we will discuss it.

Free Dividend Yield Newsletter

Free Dividend Yield Newsletter

If you like to receive our Newsletter, please enter your email and verify your adress. Easily unsubscribe at any time, no spam, just content.