There aren't too many companies out there quite like AFP Provida (PVD). Provida is part of the Chilean pension system; a system that requires Chilean workers to contribute to privately-run pension plans that manage the money on their behalf for retirement. With a growing population and a lucrative fee-collecting business, Provida is an interesting way for American investors to collect significant dividends from a company heavily levered to economic growth in one of the more stable Latin American economies.
A Weird Mix Of Private And Public
There is nothing especially normal or straightforward about the system in which Provida operates. A long time ago now, the Chilean government decided to scrap its public retirement system in favor of a system that would let private pension companies invest and manage money on behalf of workers.
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AFP Provida: A Very Different Dividend Play
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