Lower Your Risk With Tobacco, Utilities and Brazillian Beer Stocks

by Louis Navellier | August 11, 2011 5:30 am

Beer Taps[1]It was another roller-coaster day for the markets yesterday. The dead-cat bounce we saw Tuesday morning was replaced by renewed fears on Wednesday. With all the volatility, investors remain understandably concerned about what will happen next.

So what is the next step?

At this point, cashing out may seem like the best option. But I’m here to tell you that’s the last thing you want to do. Without a doubt, the market has hit a rough patch, but that doesn’t mean it is time to pack up and get out of Dodge.

The trick to getting the most out of your investment capital is knowing the best type of positions to invest in for any given situation. In this shaky market environment, smart investors will flock to stocks that offer stability. If you’re looking for positions that will offer added security and great long-term investment potential to your portfolio, then dividend stocks are the way to go.

These positions offer investors regular dividend payments and a level of security other investments can’t match. Usually every quarter, companies will take their excess earnings and use them to pay investors a percentage of their stock’s market value. This added incentive makes dividend stocks great long-term picks.

Here’s a look at the three high-yield dividend stocks that are great buys right now:

Reynolds American Inc. (NYSE:RAI[2]) is the second-largest tobacco manufacturer in the United States. RAI was created from the merger of R.J. Reynolds Tobacco Holdings and Brown & Williamson. R.J. Reynolds was facing increasing competition and needed to cut its operating costs, so it convinced Brown & Williamson, then the third-largest tobacco producer, to agree to a merger. Reynolds American’s RJR Tobacco unit boasts 5 of the 10 best-selling brands of cigarettes in the U.S., namely Camel, Kool, Pall Mall, Doral and Winston.

One of the reasons that makes this stock so attractive is its impressive 5.5% dividend yield. The company pays a quarterly dividend of $2.12 to investors. Reynolds is a solid company with strong fundamentals that won’t be slowing down anytime soon.

CPFL Energia S.A. (ADR) (NYSE:CPL[3]) is a rapidly expanding Latin American utilities company. The company is one of the largest electricity providers in Brazil. CPFL distributes electricity to approximately 6.4 million customers throughout 570 communities, primarily in the states of Sao Paulo and Rio Grande do Sul.

The company boasts a nice 4.4% yield. Investors enjoy a $1.27 quarterly payoff. Brazil remains one of the hottest emerging markets in the world. The country and the entire Latin American region will continue to enjoy some of the fastest-growing economies. As a result companies like CPFL Energia is going to keep growing and the stock’s dividend yield expand along with it.

Finally, we have another big-ticket Brazilian company. Companhia de Bebidas das Americas (NYSE:ABV[4]), better known as AmBev, dominates the Brazilian beer market with brands such as Antarctica, Brahma and Skol. Additionally, the company sells Pepsi brands, Lipton iced tea and other beverages that include mineral water and sports drinks. Along with Brazil, AmBev sells its products in some 13 other countries.

Brazil, in particular, is bursting at the seams with ripe investment opportunities as the economy rapidly expands and more money flows into the country. AmBev is one company benefiting from the Brazilian boom and is sharing the wealth with its investors. ABV offers a 4.7% yield and pays shareholders $1.47 per share owned.

These three companies are exactly the type of stocks you want to be in the current market conditions. Dividend stocks offer the exact type of stability you need to make it through these tough times and come out on top. So be sure to snatch up some shares of these great stocks while prices are low and there are tremendous gains to be made when trading volumes rebound.

  1. [Image]: https://investorplace.com/wp-content/uploads/2011/08/beer-taps.jpg
  2. RAI: http://studio-5.financialcontent.com/investplace/quote?Symbol=RAI
  3. CPL: http://studio-5.financialcontent.com/investplace/quote?Symbol=CPL
  4. ABV: http://studio-5.financialcontent.com/investplace/quote?Symbol=ABV

Source URL: https://investorplace.com/2011/08/tobacco-utilities-brazillian-beer-dividend-stocks-rai-cpl-abv/
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