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16 Cheap Latin America Stocks With Good Dividends

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

Yesterday I published a small list of the best yielding Asian dividend stocks with a low forward price to earnings ratio. Today I like to change the country and go forward with 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 USD 10 billion
- 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:
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Petroleo Brasileiro (NYSE: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 percent (the operating margin is 11.73 percent and the net profit margin 7.59 percent).

Financial Analysis: The total debt represents 28.97 percent of the company’s assets and the total debt in relation to the equity amounts to 57.22 percent. Due to the financial situation, a return on equity of 6.42 percent 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 finally 0.61. The dividend yield amounts to 6.30 percent and the beta ratio has a value of 1.44.

Long-Term Stock Price Chart Of Petroleo Brasileiro (PBR)
Long-Term Dividend Payment History of Petroleo Brasileiro (PBR)
Long-Term Dividend Yield History of Petroleo Brasileiro (PBR)

Telefonica Brasil (NYSE: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 percent (the operating margin is 21.26 percent and the net profit margin 13.12 percent).

Financial Analysis: The total debt represents 11.39 percent of the company’s assets and the total debt in relation to the equity amounts to 17.91 percent. Due to the financial situation, a return on equity of 10.12 percent 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 finally 1.30. The dividend yield amounts to 5.64 percent and the beta ratio has a value of 0.64.

Long-Term Stock Price Chart Of Telefonica Brasil (VIV)
Long-Term Dividend Payment History of Telefonica Brasil (VIV)
Long-Term Dividend Yield History of Telefonica Brasil (VIV)

Vale (NYSE: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 percent (the operating margin is 19.34 percent and the net profit margin 13.11 percent).

Financial Analysis: The total debt represents 24.49 percent of the company’s assets and the total debt in relation to the equity amounts to 43.37 percent. Due to the financial situation, a return on equity of 9.33 percent 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 finally 1.11. The dividend yield amounts to 5.16 percent and the beta ratio has a value of 1.47.

Long-Term Stock Price Chart Of Vale (VALE)
Long-Term Dividend Payment History of Vale (VALE)
Long-Term Dividend Yield History of Vale (VALE)


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

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

Best Dividend Paying Stocks From Latin America (Click to enlarge)

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Related stock ticker symbols:
SAN, VIV, EC, VALE, BCH, BSAC, CIB, BBD, BAP, AMX, PBR-A, ENI, PBR, EOC, ITUB, GGB

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*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.