This High-Yield “Vacation Destination” Airport Stock Is Cheap

One company holds the travel monopoly on two major international tourist destinations.

Grupo Aeroportuario del Pacífico ($PAC) is a Mexican airport operator that owns airports in popular tourist hotspots such as Los Cabos and Puerto Vallarta. And, the company also owns two international airports in Jamaica.

While airlines are a notoriously bad investment, airports offer stability and predictable income.

Airports make money from a variety of sources. They charge landing fees, collect money from parking lots, and earn rent from all the shops and restaurants inside their terminals.

Additionally, airports benefit from a geographical moat.

As an example, there are 5 different airlines that service the Mexican city of Aguascalientes. But there is only one international airports. And that airport is owned by PAC.

If you want to visit Aguascalientes, you can fly American, United, or Aeromexico. But ultimately, PAC makes money from all of these options.

Grupo Aeroportuario del Pacífico Fundamentals

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