High-Yield 'BRICs' to Help Build Your Portfolio
As first noted by Goldman Sachs, the fastest-growing economies during the next half-century are going to be Brazil, Russia, India and China -- BRIC, for short. Investing in these emerging markets can provide excellent returns.
However, before putting your money to work in companies with exposure to these countries, remember that there are more risks than investing in U.S. stocks.
First, the accounting standards in other countries are not as reliable as ours. Second, there are currency and inflation risks. Finally, there are political risks, especially with former Communist countries.
Fortunately, there is a way to reduce these risks: by choosing stocks that pay high-yield dividends.At Stockpickr, we keep track of the Highest-Yielding BRIC stocks that trade in the U.S. These are companies that are paying dividends out of their hard-earned cash flows. There are plenty of dividend-paying stocks from China that have ADRs and that trade in the U.S. China is one of the world's oldest civilizations, the birthplace of major inventions such as papermaking, printing, the compass and gunpowder. A very high dividend-payer is Aluminum Corp. of China (ACH), which purportedly pays a yield of about 7.7%. However, dividend payments at the company have varied greatly; there were two payments in 2006, but only one payment in each year from 2002 to 2005, ranging from 13 cents to 53 cents per share. The company's trailing P/E is 2.6, and its price-to-book ratio for the most recent quarter is 0.7.
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