Another South American commodity stock to consider is Vale (VALE), which focuses on iron, nickel and copper among other metals.
The company is projected to top $3 in earnings per share in fiscal 2014, giving it a forward price-to-earnings ratio just slightly above 5. And based on roughly $1.09 in dividends over the last year, the stock yields about 6.5% and is paying out just a third of its profits in distributions, meaning the dividends are quite sustainable.
Like Gerdau, soft demand in Latin America and China has hurt the profitability of this materials stock. VALE is off 23% in 2013, and down more than 50% from its 2011 highs.
However, inflationary pressures could prop up Vale — and you get a nice dividend while you wait.