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Will world cup and summer olympics make Brazil infrastructure a win? (BRXX, VIV, CPL)

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Brazil is entering a four-year cycle in which it will become the focal point of billions around the world for hosting the World Cup and Olympics. Along with the greater attention of those from around the world will come greater investments in Brazil's infrastructure to make it a showcase for both events.

The World Cup comes to Brazil in 2014 and the Summer Olympics will grace the country in 2016. To get ready for the tourists and the buzz, securities such as EG Shares Brazil Infrastructure exchange-traded fund ( BRXX , quote ), Telefonica Brasilia SA ( VIV , quote ) and CPFL Energia SA ( CPL , quote ) will benefit, along with their shareholders.

Roads will have to be built, new facilities constructed and massive communications systems installed. This will greatly increase the revenues for EG Shares Brazil Infrastructure (BRXX), Telefonica Brasilia SA (VIV) and CPFL Energia SA (CPL).

There will also be a huge influx of tourists for both the World Cup and Summer Olympics, which will add to the profits of each along with many other companies in Brazil, from the beer makers on down.

Long after the games are over, the facilities built and infrastructure installed will be contributing to the economy of Brazil.

As detailed in previous articles on www.emergingmoney.com , each of these names has investor appeal already. And in the meantime, the 12.25% dividend yield of Telefonica Brazilia SA and the 5.19% dividend yield of CPFL Energia will reward investors for their patience.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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