A Toast To Copper, Cabernet, And An 11% Yield
If you’re an investor who likes to pick up a bargain when everyone else is running for the exits…
If you’ve got a bit of the contrarian in you…
And if you like the idea of collecting some handsome dividend income while you’re waiting for a stock’s value to soar…
Look south. Way south, all the way down to Chile.
While Argentina and Brazil snag the financial headlines in South America, some fascinating developments are quietly unfolding in Chile.
Things aren’t exactly pretty. That’s because Chile’s economy is largely driven by the mining industry… 47% of all export revenue comes from copper.
(Although America’s wine drinkers love the deals they get on Chilean wine. The country has 90+ wineries.)
The Big Bucks Are In Copper, Not Cabernet
And the copper business in Chile is suffering from a brutal hangover these days.
The economy is shrinking. Investors have lost their thirst. In the first quarter of 2014, Chile’s GDP shrunk by 2.1%.
We’ve been keeping an eye on Chile and paying attention to forecasts from the economists at the Banco Bilbao Vizcaya Argentaria SA in Santiago.
They see a rebound coming.
And we agree. That’s because of what’s happening in China.
China is Chile’s #1 customer for copper. And as China’s economic engine revs up again, look for more orders to be placed with Chile’s mining companies.
The best way for you to catch this rising tide in Chile is to play it safe. Diversify with the Aberdeen Chile Fund (CH).
The fund pays a nice yield of 11.07%.
Not a bad reward for your patience while you wait for the copper orders to flow in from China and Chile’s sluggish economy to fire back up.
And you might even want to celebrate your profits with a glass of Chilean Cabernet Sauvignon.
Category: Dividend Stocks
