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10 Cheap Stocks to Buy Under $10

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Cheap Stocks to Buy Under $10 – CEMIG (CIG)

best-cheap-stocks-to-buy-under-$10-cigBrazil and Chile are increasing their electrical infrastructure as businesses and consumers ramp up demand. For example, Brazil consumed 455.8 billion kilowatt hours (kWh) of electricity in 2010 (the latest year for which figures are available), up from 383.3 billion kWh in 2006, according to Energy Information Administration.

Enter CEMIG (CIG), a South American utility that stands to benefit handsomely from that growth. Not only is CIG one of the top cheap stocks, but it provides the low-risk dividend potential of a utility stock.

CEMIG is a great opportunity, because after residential and businesses get on the electric grid, they tend to stay on it. In addition, the upcoming 2014 World Cup and 2016 Olympics in Brazil provide a good opportunity for CEMIG to get a boost in the amount of electricity that it sells to both tourists and businesses around the events.

CIG stock has dropped about 30% in the last year, as have many emerging market equities, but the negativity is largely priced in. Plus, CIG yields a dividend of about 10% based on its last two payouts, but those distributions are volatile.

Article printed from InvestorPlace Media,

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