TPX.B:CC - Ambev S.A.: Diversify Out Of U.S. Assets With Beer Made In Brazil

2024-04-30 00:47:56 ET

Summary

• The potential for an outlier U.S. dollar decline and the need for portfolio diversification make Ambev S.A. an attractive foreign investment.
• Ambev is trading at its cheapest valuation since the 2009 recession low and has a strong 6.5% dividend payout, 5x the S&P 500 rate.
• The company's stable brand-name business model, high profit margins, low-debt balance sheet, and undervaluation, including 10% in free cash flow generation, highlight an attractive buy choice.

As the U.S. dollar's value becomes less attractive from nearly $35 trillion in mathematically unpayable Treasury debt, investors should be searching for ways to diversify their portfolios overseas. One of my top foreign picks right now is the Ambev S.A. ( ABEV ) ADR, the largest beer brewer in South America and the 3rd biggest brewer in the world for volume sold, next to parent company Anheuser-Busch InBev ( BUD ), which owns 61% of ABEV, and Europe's Heineken N.V. ( OTCQX:HEINY ) ( OTCQX:HINKF )....

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