I believe the current political attacks on Mexico and NAFTA will create a buying opportunity in that country. I am looking to diversify my dividend growth portfolio outside the U.S. and Canada. I'm well into due diligence on a number of UK and EU firms. It's time to look for something in Mexico. Here are the criteria I'm looking at:
1) Investment must be a dividend or dividend growth investment.
2) Investment should be denominated in a currency other than $US.
3) I should see the opportunity for growth in the domestic market in case NAFTA and the wall slow down US Trade.
4) Dividend should be largely independent of trade with the U.S.
5) I am not interested in energy or health care sector investments at this time.
6) Investments in the utility and natural resource sector should be in the cleanest 50% of their sector.
7) I am looking for consistent dividend/dividend growth in native currency.
8) I see this as dividend/dividend growth diversification with a small currency play on the side.
9) The investment should be suitable for a Roth.
10) I have no objection to ADR's.
I'm currently thinking telecom, but I don't know the Mexican market or Mexican companies. Any thoughts on where I should start looking? This will initially be a quarter position. I consider it both diversification and speculative. I consider it diversification both as an additional company and as currency diversification. I'm prepared to live with currency fluctuations, but I would like to make the investment while the $US dollar is strong relative to the Peso.
Since I don't know the Mexican companies, perhaps an ETF is safer for starters.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Additional disclosure: I'm an individual investor trying to afford to retire -- someday. I hope to contribute thought to issues, and occasionally knowledge when I have it. I am not providing investment advice.