4 Winning Emerging-Markets Stock Picks

The stocks are cheap, and growth prospects for developing nations dwarf those of established countries.

If you prefer to pick your own stocks and have a high tolerance for risk, consider these participants in the explosive growth of emerging markets. (Share prices are as of October 4.)

1. Baidu (symbol BIDU, $113)

As more Chinese consumers gain access to the Internet and more businesses turn to paid search advertising to reach those consumers’ eyeballs, Baidu , China's most popular search engine, should benefit. So should its American depositary receipts.

2. China Mobile (CHL, $55)

With almost 700 million subscribers, China Mobile is the country's largest provider of wireless phone services. The company has a lot of cash on its balance sheet, and its ADR yields an attractive 3.4%.

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3. Unilever (UL, $37)

Emerging markets account for about 55% of sales at the Anglo-Dutch company. Sales of beauty products in Indonesia, shampoo in Brazil, detergent in the Philippines and more have been driving double-digit sales growth in emerging markets. A 3.2% dividend yield enhances the stock's appeal.

4. Yum Brands (YUM, $66)

The Louisville, Ky.–based proprietor of Taco Bell, Pizza Hut and KFC restaurants operates in more than 70 developing nations. China, with more than 3,900 KFC restaurants, and India account for half of Yum Brands' sales, and the firm’s China segment is its fastest-growing unit.

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Elizabeth Leary
Contributing Editor, Kiplinger's Personal Finance
Elizabeth Leary (née Ody) first joined Kiplinger in 2006 as a reporter, and has held various positions on staff and as a contributor in the years since. Her writing has also appeared in Barron's, BloombergBusinessweek, The Washington Post and other outlets.