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The drug wars in Mexico make great headlines, such as the news that drug cartel leader Ezequiel "Tony Tormenta" Cardenas was killed by the Mexican marines at the US/Mexico border yesterday. But what isn't being mentioned is that first, the drug violence is confined to only certain areas, and second, the Mexican economy is improving, with the peso rising to the highest level since April, and 850,000 new jobs have been created so far this year. One of the wealthiest people in the world is from Mexico, billionaire Carlos Slim, the chairman and CEO of Telefonos de Mexico (NYSE:TMX) and América Móvil (NYSE:AMX).

Mexico has one of the fastest growing economies in the world, with a 7.6% GDP growth rate. The middle class has been growing, per capital income has been rising, and inflation has been dropping over the last several years. Mexico had a positive trade surplus of $55 billion last year, and interestingly, has become the 9th largest holder of US debt. Based on gross domestic product in purchasing power parity, Mexico is the 11th largest economy in the world.

Investors looking for opportunities south of the border can find ten Mexico stocks that pay dividends, all but one of which trades on the New York Stock Exchange, according to WallStreetNewsNetwork.com. As a matter of fact, one of the Carlos Slim stocks, Telefonos de Mexico, also known as Telmex, pays a healthy dividend of 4.8%. The stock trades at 11 times forward earnings.

Another high yield Mexican stock is Grupo Aeroportuario Centro Norte (NASDAQ:OMAB), which participates in the growth of the travel industry by operating airports in the central and northern regions of Mexico. The stock, which trades on NASDAQ, has a 3.7% yild, and a forward price to earnings ratio of 19.

Fomento Economico Mexicano (NYSE:FMX) is a beverage distributor of Coca Cola brands in Mexico along with several other Latin American countries including Guatemala, Nicaragua, Costa Rica, Panama, Colombia, Venezuela, Brazil, and Argentina. The stock sports a yield of 1.1% and sells for 16 times forward earnings.

To access a free list of all the major Mexico stocks that trade in the US, some of which yield near 5%, go to WallStreetNewsNetwork.com. The list can be sorted, updated, and downloaded.

Disclosure: Author did not own any of the above at the time the article was written.

Source: 3 High Yield Ideas South of the Border