Sasol Limited (ADR) (SSL), America Movil SAB de CV (ADR) (AMX): Value Ideas and Dividends in Emerging Markets

Brazil-based Vale SA (ADR) (NYSE:VALE) sank 33%, though the world’s largest iron-ore concern offers a tempting dividend yield recently near 6%. Its forward P/E near 6 is less than half of its five-year average of 14, and the stock looks undervalued to many, though some aren’t convinced. Vale SA (ADR) (NYSE:VALE) has been tackling soft demand by cutting its costs significantly. The company’s CEO is talking of restrained and disciplined capital spending.

Brazilian oil giant Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) plunged 37%, burdened by significant debt. Bulls have been heartened by rising production numbers as some offshore rigs are brought back into service, and some are hopeful that solid car sales in Brazil will boost Petrobras’ business. But others point out the Brazilian government’s heavy influence on the company’s fortunes.

The big picture
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The article Value Ideas and Dividends in Emerging Markets originally appeared on Fool.com.

Longtime Fool contributor Selena Maranjian. whom you can follow on Twitter, has no position in any stocks mentioned. The Motley Fool recommends Petrobras and Sasol and owns shares of Vale.

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