18 Emerging Markets Dividend Growth Stocks

 | Jan 29, 2013 04:20AM ET

Over the recent decades, we have seen a significant change in global economic forces. China is getting more and more important in the global economy and is responsible for half of the world's economic growth.

A large trading gap was created between the emerging markets and the developed nations. As a result, the old economies created huge mountains of debt and growth slowed while the unemployment rates exploded.

The emerging markets have shown an opposite ratio - low debt to high growth. Unknown companies becamemultinational super companies in only a decade and made people very rich.

Today we'll look at some of the best growth stock with dividend payments from the popular BRIC nations.

My screening criteria are:

- Headquartered in a BRIC country
- Market capitalization over $2 billion
- 5 year expected EPS growth over 5%
- Positive dividend yield

Seventeen companies fulfilled these criteria of which one stock has a high-yield and twelve are recommended to buy.

PetroChina (PTR) has a market capitalization of $261.77 billion. The company employs 552,810 people, generates revenue of $322.145 billion and has a net income of $23.464 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $51.583 billion. The EBITDA margin is 16.01 percent (the operating margin is 9.11 percent and the net profit margin 7.28 percent).

Financial Analysis: The total debt represents 16.60 percent of the company’s assets and the total debt in relation to the equity amounts to 31.75 percent. Due to the financial situation, a return on equity of 13.70 percent was realized. Twelve trailing months earnings per share reached a value of $10.36. Last fiscal year, the company paid $5.26 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.80, the P/S ratio is 0.82 and the P/B ratio is finally 1.62. The dividend yield amounts to 3.50 percent and the beta ratio has a value of 1.10.