What is the "Rising Consumer Class"?

The "Rising Consumer Class" refers to the growing middle-income population in developing countries who are gaining enough disposable income to purchase consumer goods and services beyond basic necessities. This demographic shift is happening primarily in regions like Asia, Africa, and Latin America, creating new markets for businesses ranging from e-commerce and digital services to branded consumer goods and luxury items.

Why are emerging markets considered a growth opportunity for investors?

Emerging markets offer growth potential because they typically have younger populations, rapidly increasing disposable incomes, and lower market saturation compared to developed economies. As millions of people enter the middle class in these regions, their spending on consumer goods, technology, financial services, and lifestyle products tends to accelerate, potentially driving higher revenue growth for companies with strong positions in these markets.

What is market capitalization and why does it matter?

Market capitalization (or "market cap") is the total value of a company's outstanding shares, calculated by multiplying the share price by the number of shares. It matters because it shows the company's size and can indicate stability, resources, and market influence. Larger market cap companies (like many in this collection) often have more resources to expand into emerging markets, while still providing relative stability compared to smaller companies.

What are dividend yields and payment dates?

Dividend yield is the annual dividend payment divided by the stock price, shown as a percentage. It tells you how much income you might receive relative to your investment. The dividend payment date is when the company distributes these payments to shareholders. For investors interested in the Rising Consumer Class, dividends can provide income while waiting for potential long-term growth from emerging market expansion.

How do digital payment companies fit into the Rising Consumer Class theme?

Digital payment companies (like PAGS and STNE in this collection) are critical infrastructure for the rising consumer class. In many emerging markets, consumers are leapfrogging traditional banking and moving directly to digital payments via mobile devices. These payment platforms enable e-commerce, peer-to-peer transfers, and merchant transactions in regions with previously limited financial access, allowing companies to tap into consumer spending that was invisible to the formal economy before.

15 handpicked stocks

Rising Consumer Class

Tap into companies strategically positioned to capture the growing purchasing power of emerging market consumers. These carefully selected stocks represent businesses that professional analysts believe will benefit from rising disposable incomes in developing economies worldwide.

Han Tan | Market Analyst

Updated 2 days ago | Published at juin 17