Best Retirement Stocks: Femsa (FMX)
Dividend Yield: 1.5%
Fomento Economic Mexicano SAB (ADR) (NYSE:FMX) or Femsa for short, is kind of like Coca-Cola, only it has more growth, and it does all of its business outside of the U.S. In fact, the only meaningful source of revenue from America is generated by a 20% stake in Heineken NV (ADR) (OTCMKTS:HEINY).
As for Coke, Femsa owns 47.9% of Coca-Cola FEMSA, S.A.B. de C.V. (ADR) (NYSE:KOF), the largest franchise bottler of Coca-Cola in the world by volume. Coca-Cola Femsa operates in Mexico, Brazil, Argentina, Columbia, Central America, Venezuela and the Philippines.
Its main business is the 100%-owned OXXO convenience store chain. It operates more than 15,000 stores in Latin America and is one of the largest in the world. (And, of course, you can buy Coke products at all of them.) In 2013, Femsa acquired two Mexican drugstore chains; it now operates more than 1,000 drug stores in Mexico and other parts of South America, and more will open in the years ahead.
This stock has not performed very well in the past five years, but these are stocks that will take care of you in the future. Fomento’s emerging-market exposure will help it outperform the S&P 500 in the years ahead.