The 4 Best Dividend Stocks in Mexico
The Mexican economy has exhibited steady growth over the last 10 years, bolstered by manufacturing, tourism, and a generally favorable trade relationship with the rest of the world. But volatility between the Mexican peso and the U.S. dollar often scares investors away from investing in Mexican stocks.
Image source: Bloomberg Markets.
As the chart above shows, the peso lost about 75% of its value against the dollar between the spring of 2013 and year-end 2016, though it's staged a comeback in 2017, gaining 17% on the greenback since the beginning of the year. A depreciating peso cuts into the returns of Mexican American depositary receipts, or ADRs, the share type that foreign-listed corporations typically utilize to trade on U.S. exchanges. Of course, the opposite also holds true: A strengthening peso favorably boosts Mexican ADR returns.
Source: Fool.com