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In most countries, a company this profitable would be illegal...
Profit from this Legal
Monopoly While You Can Dear Investor, When a Chilean says "Una cerveza, por favor," seven times out of eight, he's getting a brew made by the most profitable company in Chile. It absolutely dominates Chile's beer market with an 85% market share. This brewing giant is not only the largest beer maker in Chile, it's the second-largest in Argentina, too -- thanks to its hugely popular Cordoba beer. And Argentina's market is four times bigger than Chile's. It is Chile's only bottler of Pepsi, Dr. Pepper, Snapple, Crush and Canada Dry. The company also distributes Heineken, Corona, Negra Modelo, and Guinness. The company also has 65% of the mineral water market in Chile, 45% of the market for pisco, a popular brandy ... and an astounding 100% of the fruit juice market. A company this dominant would be banned in most countries. This aggressive growth machine would be slammed with anti-trust lawsuits if it were U.S. based. Yet you can buy this virtual Chilean monopoly right here on the NYSE for only nine times earnings. Compare that to the average beverage industry stock, which is twice as expensive, selling for 18 times earnings. In my 21 years of scouting out special situations for investors, I've rarely seen a stock with so many things going for it. It's exactly the sort of locked-in profit play I've spent my career looking for. Its semi-annual dividend tripled between 2004 and 2007, and this year it rose another +45%. The stock yields 5.9% at current prices. The only thing different from a year ago is that the stock is cheaper for U.S. investors. That's because the Chilean peso has weakened against the dollar. Over the next year, I expect the peso to rally as investors slowly sell their U.S. Treasury bills and diversify into emerging markets again. In fact, I believe this stock could easily double within a year. Whatever Angle You Look at, It's Bullish The company I've found is in a sweet spot that most companies can only dream about. It's in a recession-proof business -- people drink in good times and bad. Take virtually anything people drink in Chile, and this company has a hand in it. Almost every time someone pops open a drink... a few more pesos end up in its coffers. The company has extremely well-established brands and superior distribution, making it difficult for competitors to make headway.
With dominant market shares come very high profit margins -- sales have doubled over the past four years. Although the recession will dampen growth for the next two or three quarters, it should stay positive. In fact, sales should rise about +8% annually over the next several years thanks to population and income growth and rising sales for its higher-priced items. Earnings are estimated to continue at a +5% pace over the long term. This should help support steadily rising dividends. Through good times and bad, it keeps plowing ahead. Since listing on the NYSE in 1992, the stock has soared 369%--more than doubling the S&P 500. Here's the clincher. On top of stunning growth it also gives you a CD-crushing 5.9% yield. The dividend has soared from 65 cents to over $1.50 in the past five years. And it's wallowing in liquidity, which means your fat dividends are secure. When a company grows its dividends as fast as this one has, you can make staggering profits even if the share price never budges. Your dividend check can eventually grow so large that it surpasses the original price you paid for the stock. The exhilaration of "lapping" your stock that way is a feeling you never forget. I've Spent My Career Looking for Investments Like This My name is Nick Lanyi. I'm editor of the specialized investment letter, High-Yield International. I scour 27 global stock markets for high-yielding stocks that make my investors up to 26.5% a year in dividends alone. Why do I focus abroad? Because that's where the yields are! Right now, there are 429 profitable companies worldwide yielding more than 20% -- but only 23 of them are in the U.S. So any income investor who doesn't look overseas is missing out on 96% of world's highest yielding securities. While U.S. shares pay a puny 4.1%, the average stock in Italy yields 13%! And there are dozens of Italian blue chips throwing off 14% and more! Stocks in Taiwan yield 11.2%... in Spain they pay 7.7%... in New Zealand 7.8%... Sweden, 7.4%... and in the U.K., 6.9%. You can capture these payouts yourself right here. Get in now and you are not only poised to capture unprecedented yields, but you're positioning yourself for massive capital gains when the market turns around.
High
Dividend Payers Like My Chile Play Are the Dividends are the forgotten heroes that have made countless investors rich. When people talk about the massive gains common stocks have racked up over long holding periods, what they're really talking about is the phenomenal juggernaut effect of reinvested dividends.
Why do I love dividends? Let me count the ways... For one, they clobber the competition. Since 1972, the non-dividend payers in the S&P 500 have doubled in value. The dividend payers have skyrocketed 12 times over. Dividends also promote financial discipline. They require executives to use capital efficiently, and send a clear message that management is treating shareholders right by paying them the profits they deserve as co-owners of the business. What's more, dividends don't lie. A steady stream of dividends indicate that a company is on the up and up and keeps straight books. You can hide a lot of bad news with tricky accounting, but you can't fake dividends. Finally, dividend-paying stocks are safer. Over the bearish three years of 2000-2002, as the non-dividend-payers in the S&P 500 sank 33%, the dividend-payers actually rose 10%. My mission at High-Yield International is to bring you a full buffet of these wealth-building delicacies. If you want to keep your money out of long-term losers like bank accounts and CDs and put it to work in tireless investments that will never stop making you money, you're in the right place. You'll find plenty of these workhorses in every issue of High-Yield International. Right now in my "Reliable Income Portfolio" you'll find 20 foreign common stocks, preferred stocks, mutual funds and ETFs yielding from 5.1% to 20.0%. These stable, growing cash cows have long track records and strong future prospects. You can count on them to deliver premium income year-in and year-out. Send for My Report on this Chilean Juggernaut The fundamental economic forces converging to drive this stock higher are so strong and enduring that I can imagine holding this one and watching it grow for years. It's a classic "mattress stuffer" -- you can buy it, forget about it for years and let it steadily make you wealthy. In fairness to my paying subscribers I can't identify it here. But it's such a compelling story that I wrote an entire "Stock of the Month" report on it. If you'd like the whole story on the extraordinary profits I believe this Chilean giant will bring its owners in the coming years, then I'd like you to see that report. All you have to do is click here and you'll have it within minutes. I first alerted High-Yield International readers to it last December. It was selling for only eight times forward earnings. Now, less than three months later, it's up +15% while the Dow is down -25% over the same period. Judging by these numbers, plenty more gains lie ahead. It is growing multiple times faster than the global leader, yet its P/E ratio is lower -- an Alice in Wonderland inversion of investing reality. You can almost count your profits in advance if you own a legitimate monopoly. When you also have currency forces, economic trends and human nature in your favor -- as we do with this Chilean monopoly -- you're looking at an opportunity so sure, so safe and so obvious, it's begging to make you richer. I urge you to take a risk-free look at High-Yield International and add this stock to your portfolio. This stock could easily double in the next 12 months. Here's Where I'm Putting My Money Today I'm putting my money to work in healthy companies that are paying me up to 26.4% cash dividends in strong currencies like euros, kronas, pesos, zlotys, shekels and rubles. There's no reason you can't do the same thing. Stocks in New Zealand, Italy, Sweden and a dozen other markets pay dramatically higher yields than U.S. companies. Why invest in U.S. stocks yielding 4.1% when you can get 13.1% in Italy? You'll find plenty of these workhorses in every issue of High-Yield International. The 16 names in my Ultra-High-Yield Portfolio yield from 12.0% to 26.5%. High-Yield International is the perfect way to get some of your money safely off Wall Street, while pocketing much higher income. When you venture off Wall Street looking for monster yields, it requires extreme due diligence. When you're buying Venezuelan stocks yielding 24%, and you're looking over your shoulder at Hugo Chavez, you'll feel a lot better knowing that my High-Yield International staff has done the research first. Buying Venezuelan stocks isn't for everyone. But what if I told you that in neighboring Brazil, you can get the same yields at a fraction of the risk? Brazil has its problems, but in contrast to Venezuela, it's staunchly capitalist and pro-American. On the Sao Paolo exchange, as I write this, no fewer than 14 stocks are yielding more than 10%. And thanks to liberalized SEC regulations and adventurous new brokerages, you can now buy these cash cows without leaving your armchair. Believe It or Not, There IS Some Good News Out There Despite our lousy economy here at home, there are plenty of bright spots around the world. China is growing at +6.0% this year. India is clocking in at an impressive +6.1%. Indonesia, the fourth-most populous nation in the world, is on track to grow 3.7% this year. The Brazilian economy, the world's 10th largest, is growing +2.7. Meanwhile, U.S. GDP is expected to shrink by -2.0% in 2009. So why throw good money after bad waiting years for a turnaround in the U.S. when you can put your money to work in healthy, growing economies right now?
Right now, Brazilian
stocks are yielding 4.6%. My favorite Brazilian pick is currently
yielding 13.4%. And your chance of bagging a capital gain is a whole
lot better in the growing Brazilian economy than in our own sickly
one. This is one of those oh-so-rare free lunches: You've got entire markets with above-average growth selling at below-average valuations because investors are fleeing anything labeled "risky." Here's where it gets interesting: Many companies in these countries pay extraordinarily high dividends. In the current issue of High-Yield International you'll find 17 securities paying more than 10% -- three times the U.S. average, but with none of its problems. Things will eventually improve here at home. But it will be a matter of years, not months. Why not go where you'll get paid now? A Powerfully Simple Investment Thesis You don't have to be a genius to understand High-Yield International's three-part game plan: 1) Most foreign economies are growing faster than ours. Simple logic dictates that their stocks will grow faster, too. 2) Despite its recent strength following the stimulus package from Capitol Hill, I am convinced that the U.S. dollar is likely to continue declining. This will accelerate the first trend and compound your profits. 3) Finally, and most importantly, yields are simply much higher overseas. The bottom line is that if you want truly high yields, you need to look overseas. While U.S. shares pay a puny 3.7%, the average stock in Italy yields almost 12%! And there are dozens of Italian blue chips throwing off 13% and more!
With yields this high you're staring at an income opportunity you may never see again in your lifetime. Just a few weeks ago, one of my safest holdings, a huge Italian utility, sported a yield of 6.0%. Now it's paying 12.9% -- a rise of +115%. Check out this table and you'll see how much more other markets yield. And I'm not even including a dozen other smaller markets that are also paying more than the U.S. Greece, for example, yields 7.4%... Singapore yields 7.7% ... and Peru, 5.0%. And remember, those are just the averages, weighted down by large numbers of stocks that don't yield a cent. What to Buy Now So what are High-Yield International readers buying now? Let's take a look...
You'll get the full story on all these income plays, with trading symbols and buy prices, in the free special reports you get when you subscribe to High-Yield International. What You'll Get When You Join High-Yield International
High-Yield International
is a web-based newsletter that you can access the instant we release
each monthly issue. You can then easily printout the issue
from your computer if you wish.
Get Up to Seven Special Reports For FREE!
Report #1: The Smart Way to Buy Foreign Stocks
Report #2: Safe Yields in Emerging Markets
Report #3: Fund Favorites: Two Closed-End Winners for Dividend Lovers
Report #4: Top Yields Down Under: Our Favorite High-Yield Stocks in Australia and New Zealand
Report #5: Secret Asian Cash Cows: Two High-Yielding Stocks Western Investors Are Missing Out on
Report #6: Heading South for Higher Yields: Latin America's Top Three Income Stocks
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Welcome to a World of High Yields with I'd like to send you the next issue of High-Yield International so you can see for yourself how easy it is to invest in the highest-yielding stocks on the planet -- paying up to 26.5%. On a $100,000 portfolio, you could pocket $26,500 per year in dividends alone in these foreign cash cows -- while reducing your risk. To make the process entirely painless, I'm inviting you to try High-Yield International RISK FREE for 90 days. If you're not completely satisfied for any reason, simply cancel on our web site or by clicking on the easy cancel link located at the bottom of each and every issue -- for a full 100% refund. The issues and research reports you received are yours to keep. If you decide to cancel after 90 days you'll receive a refund on all remaining issues. You have absolutely nothing to lose and you can cancel at any time!
You'll also get a
series of free bonus reports crammed with tips and strategies on
foreign income investing... plus 17 specific high-yielding
securities suited to weather all economic climates. You can place your future
on the back of U.S. stocks... a market yielding 3.7% that could
easily take five years to get back to break even... or lock in solid
foreign plays yielding from 5.1% to 26.5% right out of the gate in
dividends alone.
Sincerely,
Nick Lanyi Editor, High-Yield International P.S. Here are just a few of the companies in our High-Yield International portfolio right now that are scheduled to pay a sizeable dividend in the next three months:
Don't miss out on these yields! P.P.S. Remember -- your subscription is risk-free. Cancel anytime in the first three months and we'll return your subscription fee -- every cent. You'll also get to keep all of our in-depth research reports as our thanks for trying out our service.
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For steady gains, it's hard to go wrong with
the #1 phone company in the world's fourth-most populous nation,
Indonesia. It has a domestic monopoly on both local and
long-distance service and is expanding into Cambodia and Vietnam. It
has little debt, high margins and strong cash flows. It yields
7.7%
and the dividend has risen 57% in the past two years. It pays out
just 55% of its earnings, so your dividend is plenty safe. You also
have an explosive growth opportunity: its wireless business has
doubled in the past two years, and is expected to double again in
the next two.
