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I just got back from Costa Rica. It was my third visit to the country in the last ten years. And within that same decade, I’ve also spent time in Panama and Peru.
As a surfer, I go to Latin America for the world-class waves. As an investor, I go to see firsthand what’s happening on the ground … what kind of trends are taking shape … and how my Dividend Superstars subscribers might profit from the latest developments.
One thing I can say after this latest trip: Things are developing rapidly!
Heck, the last time I passed through the surf town of Tamarindo (in 2004), the roads were dirt and you were better off getting your groceries from trees and fisherman.
This time, the main road into town was freshly paved and the new Automercado supermarket boasted not just fresh produce and quality meats, but a massive international wine aisle!
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| Everywhere I looked in Costa Rica, I saw massive construction projects. |
And real estate? How about condos for $800,000? Yes, that’s in U.S. dollars! Everywhere I looked, I saw construction cranes … new luxury high rises … and large parcels of land with signs reading “Se Vende.”
Sure, you could still find $2 shrimp tacos … but most of the upscale restaurants were charging Palm Beach prices.
Meanwhile, another recent piece of news confirms just how far things have come. I’m talking about the fact that …
Apple’s iPhone Just Launched in
Ten Latin American Countries!
This past Friday, while I was hitting the beach, consumers in ten Latin American countries were lining up to get Apple iPhones.
That’s right … the most coveted cellphone in the world is now available in Argentina, Chile, Colombia, Ecuador, El Salvador, Guatemala, Honduras, Paraguay, Peru and Uruguay.
Why is such a seemingly superficial event so important?
Well, think about it: A lot of people here in the States tend to think of Latin American countries as war-torn, dusty, third-world destinations that are best avoided.
The last thing they’d picture is someone buying one of the world’s most recognizable luxury items, and a symbol of technological infrastructure.
It’s a sign of the times. A sign that incomes are rising in many Latin American countries … that communication systems are getting more efficient in places that desperately need them … that our world is truly getting smaller and more connected.
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| The iPhone coming to Latin America demonstrates the region’s rising domestic consumption and wealth. |
And for the company that’s bringing the device to the region — America Movil — it looks like another coup. Already, the company has been expanding its footprint through acquisitions, and now it is clearly the carrier with the most cachet in its operating area.
America Movil is the largest provider of wireless services in Latin America, and among the top ten wireless firms in the world.
The company is based in Mexico, but serves markets throughout the Americas. It even sells airtime in the U.S. through its subsidiary TracFone Wireless.
It’s the kind of company I like. A dominant brand run by a terrific management team (and backed by one of the world’s richest men, Carlos Slim).
Its stock pays a dividend, too. Although it provided just a token payment from 2000 through 2004, AMX has been making more substantial distributions lately. Particularly through special dividends.
Now, America Movil is just one dividend-paying Latin American stock. Other big names include Brasil Telecom (BTM), Cemex (CX), and Gerdau (GGB). All boast yields around 4% or 5% right now.
One last thought: There are also plenty of other dividend-paying Latin stocks that are still far off most investors’ radar screens. In the latest issue of Dividend Superstars, which just went to press, I highlight two worth buying right now. If you’re a subscriber, be sure and read that issue right away.
Best wishes,
Nilus
P.S. Not yet a Dividend Superstars subscriber? Don’t worry. If you sign up right now, not only will you get immediate access to my latest issue and those Latin America recommendations, but you’ll also be able to immediately download a series of special reports on other attractive dividend stocks. Click here for all the details.
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