UBS evaluated emerging market stocks with high yields and potential for earnings growth and picked fifteen ripe for investment.
As almost half of developed market bond yields are near or below zero, emerging markets are seeing stronger, long-term yields in the Middle East and Africa.
The fifteen picks:
- TAV Airports (TAVHL.Turkey and TAVHY) 9.8%, 12%
- Petroleo Brasileiro (PETR4.Brazil and PBRA (preferred), and PBR) 7.1%, 6.9%
- Fibra UNO (FUNO11.Mexico and FBASF) 5.6%, 6.5%
- Rural Electrification (532955.India) 5.5%, 6.6%
- MTN Group (MTN.SouthAfrica and MTNOY) 4.9%, 5.4%
- Formosa Plastics (1301.Taiwan) 4.7%, 4.8%
- Ambev (ABEV3.Brazil and ABEV) 4.5%, 5.3%
- Telefonica Brasil (VIVT4.Brazil and VIV) 4.3%, 5.4%
- Guangzhou Automobile Group (2238.HongKong and GNZUF) 4.0%, 4.5%
- Dalian Wanda (3699.HongKong) 3.3%, 3.8%
- Sun TV Network (532733.India) 3.3%, 3.2%
- China Resources Land (1109.HongKong) 3.3%, 3.6%
- Sberbank (SBER.Russia and SBRCY) 3.2%, 3.8%
- CSCI (3311.HongKong) 3.2%, 3.8% 3.2%, 3.8% (AKA China State Construction International Holdings)
- Sabesp (SBSP3.Brazil and SBS) 3.0%, 3.9% (AKA Companhia de Saneamento Basico do Estado de Sao Paulo)
Read more at Barron's.