Obtaining an income in dollars in a country whose currency is devalued daily is almost a necessity today. More and more Argentines are looking for a way to dollarize their savings and obtain some return at the same time, especially considering that the United States is going through an inflationary process rarely seen and leaving its currency losing more than 8% of purchasing power in the year.
What are CEDEARS?
The Argentine Deposit Certificates (cedars) it’s a certificate that is issued in Argentina and that represents shares listed in another country. The domestic investor can thus buy shares of Apple (AAPL), Amazon (AMZN), barrick gold (GOLD) or Coke (KO) without having an account in the US. They are instruments of equities (shares) for invest indirectly in shares of foreign companies without the need to have an account abroad.
Trading with this type of certificates is the same as investing in the company, each CEDEAR issued is backed by the deposit of the shares it represents. The sale is made in BYMA with an account in a Settlement and Negotiation Agent or better known by its acronym ALYC (or your Trading Agent, or your Global Investment Advisory Agent) and is settled with funds (pesos or with less liquidity in dollars) transferred in the Argentine financial system. In other words, the great advantage is having access to foreign shares, but without the need to open an account abroad.
Among the great benefits of investing in this type of instrument we must mention access to a wide variety of companies with public offer abroad, which makes it possible to avoid exposure to local political or economic risk.
Another benefit is that the CEDEARs, in times of exchange traps, are highly sought after because if a company pays dividends in dollars, the local investor would collect them in that same currency. That is It is equivalent to investing abroad, but without taking the money out of the country. If Apple pays dividends, bill dollars are charged.
PepsiCo increases its dividend
On Thursday night, the Board of PepsiCo decided to declare a dividend of US$1.15 per sharean amount 7% higher than last year. In this way, the company provides an annual dividend yield of approximately 2.7%. The confirmation comes just days after PepsiCo announced financial results for the second quarter of the year.
The next benefit will be paid on September 30 to those who have the shares in their portfolio at the close of the 2nd of the same month.
In detail, the company invoiced US$ 20,230 million3.8% more than the USD 19,490 million forecast by Wall Street. In turn, adjusted earnings per share (EPS) was US$1.86, when the consensus was around US$1.73, which represents a positive “wow effect” of 7 ,5%.
The company’s sales through Frito Lay North America totaled US$ 5,181 million, 13.8% more than in the same period of the previous year, while those of PepsiCo Beverages North America reached US$ 6,120 million, 0 .6% less.
While, in the quarter, PepsiCo invoiced US$ 2,415 million in Latin America22.8% more, while in Europe it sold US$ 3,023 million, 8% less. In Asia-Pacific, Australia and New Zealand, PepsiCo’s turnover rose 3.3% to US$1,115 million.
On the other hand, the company raised its outlook for the second time, as it now expects revenue to grow 10% by 2022 by the solid demand that remains, when previously an increase of 8% was expected.
In the presentation to shareholders, Ramon LaguartaPepsiCo’s current CEO, stated, “We are pleased with our second quarter results as our business momentum continued despite ongoing macroeconomic and geopolitical volatility and higher levels of inflation in our markets.”
How to invest in Cedears
To take advantage of these fixed profits and increase capital in the long term, it is necessary to open a client account in a brokerage company regulated by the National Value Comission such as Bull Market Brokers and deposit the necessary funds, in pesos or dollars, from a bank account of the same holder or through the BullPay prepaid card.