By 2050, 1 in 3 U.S. residents will be Latino, which would triple that segment of the population, according to U.S. Census Bureau. Companies that take advantage of this trend, particularly those who also have a strong presence in Latino markets, could make for good long-term investments, some experts say.
Pepsico (NYSE: PEP; Price: $65.79) and Colgate Palmolive (NYSE: CL; Price: $78.86) get a thumbs-up from Joe Tatusko of Westport Resources. Both companies emphasize Latino brand marketing, product segmentation and distribution, he says. Pepsi has a strong presence in Latin America. Colgate Palmolive has 27 percent of its total sales in Latin America. Tatusko also likes Avon (NYSE: AVP; Price: $28.72), which has a big presence among Spanish speakers in the United States and has products that are unique to Latinos.
Wells Fargo (NYSE: WFC; Price: $32.50) and Citigroup (NYSE: C; Price: $4.91) have invested in remittance businesses, which transfer money from local people to people who are in their native countries, says Steven Conville of Macquarie Private Wealth, who recommends both.