Dividend Payers in Brazil: What Are the Best Return Options?

Finding sources of passive income through investments is a strategy adopted by thousands of Brazilians. One of the most straightforward ways to obtain regular returns is allocating resources in shares of companies that remunerate their shareholders. But what is the best strategy to identify the top dividend payers in the local market?

Why the Best Dividend Payers Attract Investors

Companies that regularly distribute profits to shareholders offer a unique proposition: recurring gains regardless of market fluctuations. These payouts, usually quarterly or annually, represent a portion of net profit allocated to stockholders.

The attractiveness lies in some fundamental points. First, these distributions create a continuous cash flow for the investor, which can be reinvested or used as additional income. Second, companies that maintain robust remuneration policies generally have solid balance sheets, indicating stable and predictable operations. Third, the relative risk tends to be lower when compared to companies that retain 100% of their profits.

The calculation is simple: the amount distributed depends directly on the financial results and the number of shares you hold in your portfolio.

The Main Corporations That Paid the Most to Shareholders in 2023

Analyzing the performance of 2023, five names stood out significantly in investor remuneration:

Petrobras (PETR4 and PETR3): 20% Rate

The oil and gas giant returned significantly to shareholders. Even amid a volatile sector, the company maintained its trajectory of strategic divestments focused on higher-yield assets, allowing it to distribute 20% of its profit.

Companhia Siderúrgica Nacional (CSNA3): 13.4%

CSN took advantage of the favorable commodity cycle, with robust iron ore and steel prices. This scenario boosted its internal cash generation, enabling a remuneration of 13.4% to shareholders.

Gerdau Steel (GOAU4): 15%

Among the largest global steel producers, Gerdau maintains a consistent profit-sharing policy. In 2023, it paid out 15% of its results to investors, supported by operational efficiency and disciplined cash management.

Bradespar (BRAP3): 12.8%

As a holding company with significant stakes in Vale and CPFL Energia, Bradespar benefits from the remuneration policies of its investees. The result: 12.8% distributed to shareholders.

BB Seguridade (BBSE3): 10.5%

Controlled by Banco do Brasil, the insurance company remunerates shareholders with discipline. Its resilient business model and stable cash flow allowed a return of 10.5% in 2023.

Strategy to Evaluate the Best Dividend Payers

Selecting which company to include in your portfolio requires a structured analysis. Consider these dimensions:

History of Regular Payments

Check annual reports and analysis platforms. Companies with a consistent remuneration track record demonstrate commitment to investors and sustained financial capacity.

Profit Distribution Rate

This metric indicates what percentage of results is paid out versus reinvested for expansion. A very high rate may signal low reinvestment; a very low rate might mean growth opportunities are not being fully exploited.

Dividend Yield in Perspective

Dividend yield relates the amount paid per share to its current price. High yields may seem attractive, but verify if they reflect business solidity or an eventual decline in the share price.

Structural Financial Health

Analyze balance sheets: controlled debt, robust internal cash generation, and a sustainable business model are signs that the company can maintain its distributions even in challenging scenarios.

Progressive Growth of Remuneration

Companies that gradually increase their distributions offer potential for rising gains. However, very rapid expansions may not be sustainable indefinitely.

Transparency in Distribution Policy

Organizations that clearly communicate their remuneration strategy (fixed percentage of profits, payment calendar, adjustment criteria) generate greater predictability for investors.

Top Dividend Payers: Rankings of the Last Five Years

Considering a five-year period, the performance of leading corporations reflects market dynamics and strategic decisions:

Final Guidelines for Your Investment Decision

Choosing the best dividend payers goes beyond simply selecting the highest payout percentage. A balanced approach considers:

• Sector diversification: avoid concentrating allocations in a single economic segment
• Comprehensive analysis: examine revenue, operating margin, growth prospects, and competitive position
• Time horizon: dividend investments work best as a medium to long-term strategy
• Tolerable risk: align your choices with your investor profile and financial goals

Remember: profit distributions are promises of return, not guarantees. Companies face economic cycles and may reduce or suspend payments. Therefore, stay informed, question corporate decisions, and regularly monitor your portfolio.

Your journey toward passive income through stocks begins with careful research and conscious decisions.