4 High-Yield Emerging-Market Stocks

4. YPF Sociedad Anonima (YPF)

Forward Yield: 8%

YPF operates about 70 oil and gas fields in Argentina as well as three refineries, including nearly 2,700 kilometers (about 1,677 miles) of pipeline and 640,000 barrels of aggregate daily transportation capacity. YPF has about 538 million barrels of oil reserves and 2,672 billion cubic feet of gas reserves. Refined product is sold through a retail network of more than 1,632 YPF-branded service stations.

YPF's operating profits improved 30% in 2010 to $2.4 billion. Analysts expect the company to deliver at least 10% earnings growth a year during the next five years. While YPF's dividends have declined from pre-recession highs, rising oil prices improve the company's outlook. YPF pays a $3.18 annualized dividend and currently yields 7.7%. Payout from cash flow is conservative at just 35%.

YPF's shares currently trade nearly 40% below their 2005 peak price. YPF shares are valued at 10.4 times this year's earnings, which is less than the 13.5 multiple of the S&P 500.

Action to Take: My top pick for aggressive portfolios is Telecom Argentina. The shares appear reasonably priced and offer a hefty 9% yield. For more conservative investors, I like Companhia Energetica de Minas Gerais, which offers the superior safety of a utility and an attractive 6% dividend.

This article originally appeared on StreetAuthority. To read more articles from Lisa Springer on StreetAuthority, you can visit this link.

Disclosure: Lisa Springer and/or StreetAuthority, LLC hold a position in PBR, TEO, CIG, HNP and YPF.

This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

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