Johnnie Walker scotch has one of the best advertisements I've seen in years.
Maybe you've caught it. It shows hundreds of Mexican men and women unshackling themselves from a massive boulder and climbing up a mountain unchained.
Playing on their popular tagline "Keep Walking," Johnnie Walker's parent company Diageo plc (NYSE: DEO) encourages Mexican consumers to "Keep Mexico Walking."
The ad aims to tell the story of Mexico's long journey from poverty to prosperity.
And it's working. The scotch brand has created a booming market in Mexico - which is why Foreign Policy magazine wrote this month that Johnnie Walker scotch is conquering the world.
This is great news for investors - even if you aren't a fan of scotch...
Diageo is part of a global club known as "sin stocks." These are companies that manufacture products that are considered "bad for you." These companies tend to be recession-proof - meaning their stocks can outperform markets when the economy is shaky.
Sin stocks are a favorite among portfolio owners not just because consumers buy these brands in good times and bad, but also because they tend to provide steady income streams in the form of strong dividends.
Now international sin stocks like Diageo have developed strategies to capture growth from emerging markets, like Mexico. Even though emerging markets have struggled since earlier this year when Ben Bernanke first hinted at a QE taper, their consumers continue to spend money on alcohol, tobacco products, gambling, and fast food.
These stocks are a great way to profit from regions with increasing consumer spending - as U.S. consumers struggle with declining incomes and rising prices.
Here are five sin stocks to buy now.
Sin Stocks to Buy: Diageo (NYSE: DEO)
Diageo manufactures, distributes, and markets global brands of spirits, beer, and wine products. The company's premium spirits brands like Johnnie Walker and Smirnoff are extremely popular with U.S. consumers. But it's the international market that offers the real boost.
With a yield of 2.37%, Diageo is a giant in the emerging markets. The company earns 33% of its profits from emerging markets and has gained double-digit growth abroad. Investors will expect this dividend to increase in the future as well, as the firm has raised distributions each year for more than a decade.
And, as I noted above, they're very good at marketing toward emerging markets.
Sin Stocks to Buy: Philip Morris International (NYSE: PM)
As the world's second-largest tobacco company, Philip Morris International (NYSE: PM) is an ideal sin stock.
And with numbers like these, it's also an ideal way to play global growth...
The U.S. cigarette market is shrinking. The best growth opportunities are found in countries like India, China, and Indonesia. One out of every three cigarettes in the world is smoked in China, and while Americans might be kicking the habit, new international cigarette smokers are joining the ranks every day.
Philip Morris owns nearly 30% of the global tobacco market and has grown substantially since its split with Altria Group. The company owns the world's most iconic brand in Marlboro and has a very loyal client base.
It also offers investors a strong yield of 4.40%.
Sin Stocks to Buy: McDonald's Corp. (NYSE: MCD)
McDonald's Corp. (NYSE: MCD), home of the Big Mac, remains one of the most reliable streams of income for international investors.
Domestically, the company is transitioning to a different menu, and its income streams have steadied. That's why most of its growth is now found in Africa and East Asia, where the company is thriving.
It's also a Dividend Aristocrat and has raised its dividend for 34 consecutive years.
The company offers a strong 3.42% yield, and it has increased its annual distributions by 26.5% each year over the last ten years.
Sin Stocks to Buy: Altria Group Inc. (NYSE: MO)
Altria Group Inc. (NYSE: MO) is the crown-jewel of sin stocks.
Through its many subsidiaries, Altria manufactures and sells cigarettes, wine, and other tobacco products in the United States and abroad. It dominated the U.S. cigarette market with 50% of the domestic share. But for investors, the reputation as a dividend champion has made it one of the best companies to own.
The country has increased its dividend for 43 years in a row. Its current yield sits at 5.40%.
For more on why Altria's yield makes it one of the best sin stocks to buy, check out This Time-Tested Strategy Could Be Your Winning Lottery Ticket.
Sin Stocks to Buy: Wynn Resorts (Nasdaq: WYNN)
Wynn Resorts Ltd (Nasdaq: WYNN) currently pays out a $1 per share dividend each quarter, which provides a 2.4% dividend yield at its current stock price. And it's thriving because of the international markets.
You see, Las Vegas is old news for casino giants. All the action is now in China, and companies like Wynn Resorts are raking in the profits from gamblers abroad. Today, approximately 70% of Wynn's gambling revenues come from Macau, the thriving Chinese gambling district.
Wynn currently owns two properties in Macau and has begun to construct its third. Best of all, they're thriving because they are one of the few companies to earn a gaming license from the Chinese government.
That makes Wynn a stock poised for even more growth abroad.
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