Top Yielding Brazil Utility Stocks

Brazil is a very wealthy country, based on its commodity resources, its financial stability, and its people. Speaking of Brazilian people, did you happen to see how wealthy the Brazilian supermodel Gisele Bunchen is and her effect on the companies that she endorses? As a matter of fact, three of the top five wealthiest supermodels in the world, Gisele, Adriana Lima, and Alessandra Ambrosio, are all from Brazil. What is it about Brazil?

Is it because this country, the fifth largest in the world by both area and population, is ranked number seven out of all countries in terms of Gross Domestic Product? Is it because a substantial portion of its energy comes from renewable sources, primarily hydroelectricity and ethanol? Is it due to the huge oil reserves off its coast? Or maybe it is the jump in the literacy rate since 1980 from 75% to 90%? Maybe it is all of the above.

Brazilian utility stocks may be one option for investors looking for growth, income, and stability in terms of Brazilian investments. According to the free list of Brazil stocks at WallStreetNewsNetwork.com, there are half a dozen Brazilian utilities to choose from.

CPFL Energia S.A. (CPL) is the largest provider of electric generation and distribution in Brazil. It is also Brazil's third largest utility. The company, headquartered in Campinas, Sao Paulo, is composed of CPFL Brasil, CPFL Pirantininga, CPFL Paulista, CPFL Geracao and SEMESA.

The company has an installed generating capacity of over 2,300 megawatts. The consumer group revenues were approximately 31.4 percent from industrial customers, 19.6 percent from commercial customers, 37.3 percent from residential customers and 3.3 percent from rural customers, along with 8.4 percent from other customers.

The company also owns a couple dozen small hydroelectric generation facilities and one thermoelectric power plant. The stock has a forward price to earnings ratio of 10.1 and a hefty yield of 6.4%. Earnings for the latest quarter were up 7.1% on a 6.2% increase in revenues.

Companhia Energetica de Minas Gerais [CEMIG] (CIG) is one of the largest generator and distributor of power in Brazil. Also known as CEMIG, it has over 50 power plants in operation, with a generating capacity of 6,000 megawatts. The company also owns cable television and Internet and telecommunications services. Over half of the stock in CEMIG is owned by Minas Gerais, which his traded on the Bovespa and the New York Stock Exchange.

The power generation of the company is produced through 59 hydroelectric plants, three thermoelectric plants and four wind farms. Eight of the hydroelectric plants account for about 83 percent of the installed electric capacity of the company. The company also has over 30 substations, with around 100 transformers that have a transformation capacity of approximately 15,000 megavolts.

The company transmits both its own energy, and the energy that is purchased from Itaipu. The company has a dozen industrial consumers, who accounted for nearly 20 percent of the total volume of electricity the company sold. electricity to approximately 7.1 million end-consumers. The stock trades at 11.3 times forward earnings and pays a yield of 6.3%. Earnings for the latest quarter ending June 30 were up an outstanding 28.5% on an 11.3% revenue rise.

Companhia Paranaense de Energia [COPEL] (ELP), also known as COPEL, is an electric power company that specializes in the business of transmission, distribution and generation of electric power in Brazil’s Parana state. The company also provides telecommunication and information technology services through services it has developed with various partnerships. The company has over 17 hydroelectric plants and one thermoelectric plant.

The company is made up of five subsidiaries, Copel Geracao, Copel Transmissao, Copel Distribuicao, Copel Telecomunicacacaes and Copel Participacaes. The system relies on 12 substations, several of which are remote-operated. The stock has a forward P/E ratio of 8.7 and a yield of 1%.

To see other high yield Brazilian utilities and other dividend paying Brazil stocks, you can access a free list of Brazil stocks at WallStreetNewsNetwork.com, which can be downloaded, updated, and sorted.

Disclosure: Author did not own any of the above at the time the article was written.

By Stockerblog.com

High Yield Brazil Utility Stocks

Brazil's economy grew at a rate of 7% last year, partially due to significant exports to China. Even Goldman Sachs is expanding its staffing in Brazil by 20%. Investors looking for growth and stability in Brazilian investments should take a closer look at Brazilian utility stocks, all of which appear on the Brazil stock list at WallStreetNewsNetwork.com.

CPFL Energia S.A. (CPL) is one of the largest companies that provides electric generation and distribution in Brazil is CPFL Energia. The company is composed of CPFL Brasil, CPFL Pirantininga, CPFL Paulista, CPFL Geracao and SEMESA.
The company is headquartered in Campinas, Sao Paulo, and is one of the top 50 largest Brazilian company in terms of sales.
The company has an installed generating capacity of 2,309 megawatts. In total, the consumer group revenues were approximately 31.4 percent from industrial customers, 19.6 percent from commercial customers, 37.3 percent from residential customers and 3.3 percent from rural customers, along with 8.4 percent from other customers.
The company also owns a couple dozen small hydroelectric generation facilities and one thermoelectric power plant.
The stock has a forward price to earnings ratio of 17.3 and a a yield of 4.4%.

Companhia de Saneamento Basico do Estado de Sao Paulo [SABESP] (SBS) is a utility company that operates out of Brazil, providing water and sewage services to residential, commercial and industrial customers in over 350 municipalities in Sao Paulo, including the City of Sao Paulo.
The services it provides are basic sanitation services, including abstraction, treatment, processing, distributing, and the collection and treatment of sewage.
The largest sector of revenue for the company is the Sao Paulo Metropolitan Regional and Regional Systems.
The company has over 15,000 employees.
In terms of water treatment, the company has approximately 200 treatment facilities, of which the eight largest in the Sao Paulo Metro Region accounts for 72 percent of all the water produced. All the water treated by the company receives fluoridation treatment.
The Sewage Treatment and Disposal aspect of the business collects about 63 percent of all the sewage collected in the State of Sao Paulo. After the water has been treated, it is discharged into inland waters and the Atlantic Ocean. Currently, Sabesp has over 400 sewage treatment facilities and eight ocean outfalls.
The stock has a forward P/E of 7.8 and a yield of 4%.

Companhia Energetica de Minas Gerais [CEMIG] (CIG) is the largest combined power generator and distributor in Brazil, Companhia Energetica de Minas Gerais, known as CEMIG, has over 50 power plants in operation, with a generating capacity of 6,000 megawatts. The company also owns cable television and internet and telecommunications services.
Over half of the stock in Cemig is owned by Minas Gerais, which his traded on the Bovespa and the New York Stock Exchange.
The power generation of the company is produced through 51 hydroelectric plants, four thermoelectric plants and one wind farm. Eight of the hydroelectric plants account for about 83 percent of the installed electric capacity of the company. The company also has over 30 substations, with around 100 transformers that have a transformation capacity of approximately 15,000 megavolts.
The company transmits both its own energy, and the energy that is purchased from Itaipu. The company has a dozen industrial consumers, who accounted for nearly 20 percent of the total volume of electricity the company sold.
The stock has a forward P/E of 12.3 and pays a yield of 5.3%.

Companhia Paranaense de Energia [COPEL] (ELP), also known as COPEL, is an electric power company that specializes in the business of transmission, distribution and generation of electric power in Brazil’s Parana state. The company also provides telecommunication and information technology services through services it has developed with various partnerships. The company has over 15 hydroelectric plants and one thermoelectric plant.
The company is made up of five subsidiaries, Copel Geracao, Copel Transmissao, Copel Distribuicao, Copel Telecomunicacacaes and Copel Participacaes.
The generation sector of the company is done through 18 power plants. The system relies on 12 substations, 11 of which are remote-operated.
The stock has a forward P/E of 11.6 and a yield of 0.7%.

A free list of Brazil stocks can be found at WallStreetNewsNetwork.com, which can be downloaded, updated, and sorted. Also, don't forget to check out the articles on other Brazil industries, including Brazil Telecommunications Stocks and Brazil Financial Stocks.

Disclosure: Author did not own any of the above at the time the article was written.

By Stockerblog.com

Top Yielding Brazil Telecom Stocks

Are Brazilian stocks worth calling on? The growth in the number of cellular phones has increased by more than 17% in the last year, according to Teleco. Brazil has several telecom companies which are publicly traded, most of which trade on the New York Stock Exchange. According to the free list of Brazil stocks at WallStreetNewsNetwork.com, there are almost half a dozen Brazilian telecom companies that pay yields in excess of 1.5%.

Oi (TNE), based in Rio De Janeiro, was formerly called Telemar, but is also still called Telemar Norte Leste S.A., is the largest landline telephone company in Brazil and the second biggest in Latin America, behind Mexican América Móvil (AMX), based on both the number of lines in service and on revenues.
The company has over 22 million land lines, more than 31 million wireless customers, 4 million ADSL subscribers and approximately 44,000 employees. Oi is Portuguese for "Hi". The stock has a forward P/E of 8.4 with a fairly generous yield of 3.2%.

Brasil Telecom S.A. (BTM) is one of the major telecommunications companies in Brazil is Brasil Telecom, which is headquartered out of Brasilia. It is one of only three land-line companies in Brazil since the break-up of Telebras. The company was originally called Tele Centro Sul, and its service covers Acre, Rondonia, Goias, Tocantins, Mato Grosso, Mato Grosso do Sul, Parana, Santa Catarina, Rio Grande do Sul and the Brazilian Federal District. The company currently has over 20,000 employees.
Brasil Telecom provides a vast number of services to its subscribers, including local services, installation, monthly subscriptions, public telephones, supplemented local services, long-distance services, intrastate services, international long-distance, internet, multimedia, data transmission and wireless services.
The stock trades at five times forward earnings and generates a yield of 1.9%.

Net Servios de Comunicao (NETC), also known as Net S.A., is the largest cable television provider in Latin America, having over 23.5 million subscribers. In addition to the television service, the company offers broadband internet services, with 12.6 million, as well as telephone over cable under the Net Fone via Embratel name, with 2.3 million subscribers.
In 2006, the company began to work with Embratel, to begin the process of integrating Voice over IP technology to allow subscribers to make local, long-distance and international calls from any telephone.
The core of the company’s business is in the pay-television service, which includes cable and pay-per-view. This service is available in many cities in Brazil, including Sao Paulo, Rio de Janeiro, Belo Horizonte, Porto Alegre, Recife, Brasilia, Goiania, Curitiba and Florianopolis.
This service comes to customers in three major packages, digital, premium and advanced. The digital cable service provides high quality broadcasting and video-on-demand services.
The stock has a forward P/E of 8.5.

Telecomunicacoes de Sao Paulo S.A. (VIV), also known as Vivo Participações S.A. and Telesp, is a communications company that operates in the Sao Paulo State in Brazil. The company generates revenue in excess of $5 billion each year. The parent company for Telesp is Telefonica.
Telesp provides fixed-line telecommunication that include local services, measured service, public telephones, intraregional and international long-distance, multimedia services and network services that include interconnection and leasing of facilities.
The company also provides services that allow cellular service providers and other telecommunication companies to have the ability to use its network.
The local service of the company includes measuring service on all calls that originate or end in the local area. Also, Telesp has a telephone service concessionaire to offer local services to other states, including Sergipe, Espirito Santo, Rio Grande do Sul, Parana, Santa Catarina and parts of Rio de Janeiro. The company also provides local telephone services in Para, Amapa, Rondonia, Maranhao, Tocantins and Acre. The business employs over 77 million customers.
The stock has a P/E of 8.6 and based on the last two dividend payments, the stock yields about 10%.

TIM Participacoes S.A. (TSU), also known as TIM Brasil, is the only company in Brazil that offers cellular service throughout the country, TIM Participacoes, uses its subsidiaries, TIM Celular S.A. and TIM Nordeste S.A., to get cellular service across Brazil.
The company is also the largest Global System for Mobile communications operate in the country, in both terms of clients and revenues. Currently, the company has over 51 million customers.
TIM Participacoes is a wireless provider throughout Brazil, which uses a global system for its mobile communications technology. In four of the areas it covers, TIM offers time-division multiple access technology as well as GSM. The company also has value services that include text messaging, multimedia messaging services, Blackberry services, video call and wireless application protocol.
The company also provides interconnection services to fixed line and mobile providers.
The stock has a forward P/E of 15.4 and a yield of 2.6%.

For a free list of all the dividend paying Brazil stocks, which can be downloaded, sorted, and updated, go to WallStreetNewsNetwork.com.

Disclosure: Author did not 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

High Yield Brazil Stocks

The four BRIC countries are Brazil, Russia, India, and China, with Brazil being the leader of the group. Brazil is one of the largest countries in the world by both population and area and is the largest economy in Latin America. It is also the largest producer of ethanol in the world, which comes from sugarcane.

Fortunately, there are plenty of Brazilian stocks available to US investors. One source of information is the book I wrote a few years ago, Investing in Brazil Stocks: Get Rich from the South American Giant. Another resource is the free list of Brazil stocks at WallStreetNewsNetwork.com. Here are some from the list. Twenty of the stocks on the list pay dividends.

An example is Companhia Siderurgica Nacional (SID), the second largest Brazilian steel manufacturer. The company is participating in the growth in the rebuilding of infrastructure and the demand for steel. The stock pays a yield of 4.8% and trades at 12 times forward earnings.

Vale (VALE) is the second largest mining company in the world and the largest logistics operator in Brazil. The stock has a price to earnings ratio of 9, and a yield of 1.5%.

Companhia de Bebidas Das Americas (ABV) also known as AMBEV, is a distributor of beer, soft drinks, sport drinks, and bottled water. The stock has a PE ratio of 19.6 and provides a yield of 4.8%.

CPFL Energia S.A. (CPL) is one of the largest electrical utilities in Brazil with a PE of 15. The yield is 4.3% based on historical dividend payments.

To see a list of all Brazilian stocks that trade in the US, check out WallStreetNewsNetwork.com or the book Investing in Brazil Stocks.

Disclosure: Author did not own any of the above at the time the article was written. However, he wrote the above book.

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