Trading idea–
I refer to them as BBB, or Brazilian Beer Bet, aka Ambev S.A, (ABEV) - a brewer whose reach is more than just Brazil, or South America.
Shares are usually range bound and don’t trade > $3.30/sh too often. So, my bet involves grabbing shares below $2.75 and riding them up for a 15-20% return. Currently, @ $2.63/sh … more wiggle room
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In 2022, two successful roundtrips with ABEV, so this isn’t a buy-&-hope suggestion. There’s also a variable annual dividend, but that isn’t the motivator for the premise.
On the 6 month chart, AB Inbev (ticker BUD) has a pretty good uptrend.
You expect beer to be relatively recession resistant. Its one of the inexpensive pleasures you can enjoy when laid off. Or have time on your hands. BUD is the industry leader in the US but owned internationally.
I prefer SAM, but waiting for a lower price for sometime. If it ever gets to $200, I will buy for a longtime.
Good-luck with that - I think SAM was last in the $200’s about 4.5 years ago.
Thanks for the wishes. Let me hope and pray when it gets there, I have the courage to buy it.
“Thanks for the wishes. Let me hope and pray when it gets there, I have the courage to buy it.”
Frequently, when there is a market beat-down, the investment options seem to increase … at a more-than-linear pace. New Year is a good time frame, to survey the investing landscape.
Hi All!
Be sure and check out the ADR fees charged by BUD. When it was held in one of the family accounts I mange, it was11-16% of the dividend received…VERY high versus other ADR’s I own. I went so far as to call BUD investor relations and they were unapologetic/didn’t have any reasonable explanation for the huge difference.
So I sold the stock years ago. Maybe this is no longer the case.
Cheers!
Murph
BL Home Fool
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Thanks. I’ve noticed this problem with SQM. Foreign withholding tax is surprisingly large.
Something to watch out for.
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Constellation Brands (ticker STZ) reported earnings today. Price down 9% on missed earnings. Raised prices but costs are rising faster.
Its complicated. When Inbev bought Anheuser-Busch,they bought the rest of Modello in Mexico maker of Corona. Antitrust required them to sell US rights to Corona and Modello beers in the US. So Constellation has those brands in the U S but ABInbev has ownership in Mexico and around the globe.
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01/05/23
First dividend of 2023 via ABEV. Brazil withholds 15% of the dividend & Brazil has no tax treaty with the US. What does the withholding cost me? Less than 1% - generally, once a year (annual dividend). Benefit still way in my favor.
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I think tax withheld in foreign countries is deductible in the US but you must file for it. Your broker reports it and TurboTax and others file for it automatically.
But it is a pain that ties up your funds until tax time at least potentially. Something to keep an eye on.
“I think tax withheld in foreign countries is deductible in the US but you must file for it. Your broker reports it and TurboTax and others file for it automatically.”
If the country has a tax treaty with the US & similar tax percentage, the process is relatively straightforward. For example, Canadian tax withholding is 15% and just becomes a foreign tax credit (up to around $150 - $200). Filing becomes more complicated when the dollar amount is higher or the tax rate is higher. That will apply to me in filing 2022 tax forms since I have significant ZIM dividends and Israel withholding is a higher %.
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