Hidden Gems: 3 Overlooked Dividend Stocks in Emerging Markets

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Adding emerging markets dividend stocks into your investment portfolio could enable very nice growth and good dividends. Besides, these new markets have recently achieved industrialization, and are developing at a fast pace. These create conditions for obtaining unique opportunities, which are not considered within the framework of developed markets. I then think that the companies on this list are long-term winners.

It is a known fact that emerging markets are generally capable of attaining higher growth rates than the markets. Indian, Brazilian, and Mexican Mexican economies are projected to grow at fast rates given the ongoing industrialization and urbanization trends as well as rising consumerism. This growth represents the possibility of higher returns to investors.

What’s best is that many of these emerging markets dividend stocks show value characteristics as well. I think these companies are in a good position to provide capital appreciation as well as income generation for investors who invest in them early.

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So here are three emerging markets dividend stocks for investors to consider.

Alliance Resource Partners (ARLP)

A magnifying glass zooms in on the logo for Alliance Resource Partners, L.P. (ARLP)
A magnifying glass zooms in on the logo for Alliance Resource Partners, L.P. (ARLP)

Source: Pavel Kapysh / Shutterstock.com

Alliance Resource Partners LP (NASDAQ:ARLP) is a diverse energy company engaged in coal mining, oil and gas royalty, data centers, and Bitcoin (BTC-USD) mining. It’s one of those emerging markets dividend stocks through its presence in Colombia.

In the current energy scenario, Alliance Resource Partners is a good opportunity for investment. Even though the coal industry is under pressure, ARLP’s low-cost structure and its strategic profile make it a rather robust company. This has been because the company has diversified into oil & gas royalties to counter-check volatility in the coal market.

Also, the company’s emphasis on having long-term contracts adds to its stability, and the exploration of Bitcoin mining and possible data center business by ARLP proves the company’s ability to shift in line with energy requirements.

ARLP has a very substantial dividend yield of 11.36% and a dividend growth rate of 7.69%. I think it’s suitable for long-term investment.

Vinci Partners Investments (VINP)

The Brazilian flag with the sun in the background
The Brazilian flag with the sun in the background

Source: Shutterstock

Vinci Partners Investments (NASDAQ:VINP) is an alternative investment management firm based in Brazil, which comprises private equity, real estate, and infrastructure.

The company’s sound financials, reliable dividends, and smart acquisitions such as MAV Capital only add to the company’s attractiveness. This is especially imperative as Brazil’s financial markets mature and the populace seeks out new investment opportunities; as such, Vinci Partners is poised to create value for its shareholders in the long-term.