Discover Cheap Stocks That Pay Monthly Dividends: A Practical Guide to Passive Income

Passive income is the dream of many investors, and one of the most accessible ways to achieve it in the Brazilian market is through cheap stocks that pay monthly dividends. With over 18 million investors on B3, this strategy has gained strength in recent years, driven by falling interest rates and the search for consistent returns.

But how to identify these opportunities? And why have so many investors been betting on this model? Let’s explore all of this in detail.

Why Are Stocks with Monthly Dividends Attractive?

The logic is simple: instead of waiting years to profit from stock appreciation, you receive earnings monthly. This offers two main benefits.

First, you have a steady cash flow – each month, a sum arrives in your account. Second, these earnings can be reinvested, creating a compound interest effect that amplifies your gains over time.

Cheap stocks that pay monthly dividends also offer another crucial advantage: dividends are exempt from income tax. The investor only needs to declare the received amounts in the tax-exempt income section – although this legislation may change according to decisions by the Federal Government.

Companies adopting this model are usually well-rated by the market, show price stability, and deliver predictable profitability in the long term.

How Do Monthly Dividends Work?

Every company listed on the (Brazilian Stock Exchange) as a corporation (S/A) has a legal obligation to distribute part of its profits to shareholders. This obligation is outlined in the S/A Law and is fundamental to attract investors.

When you acquire a share of a particular company, you become a shareholder and gain rights to a fraction of the earnings. The percentage varies according to the company’s bylaws – some pay quarterly, others monthly.

In the case of monthly dividends, the company distributes its profits regularly, allowing the investor greater flexibility in their investment strategy.

Cheap Stocks That Pay Monthly Dividends: Main Sectors

The search for cheap stocks that pay monthly dividends focuses on solid and profitable sectors. The main ones are:

Energy and Petrochemical Sector
Companies like Petrobras and Taesa are historical references in dividend distribution. They have robust cash flows and punctual payments. Unipar (petrochemical) also falls into this category.

Financial and Banking Sector
Itaú, Bradesco, and Banco do Brasil are market pillars. Besides monthly dividends, these institutions offer predictability due to their size and solidity in the market.

Mining and Steel Sector
Vale and Gerdau are examples of companies that combine exposure to commodities with consistent profit distribution.

Other Relevant Sectors
Telefônica (communications), Marfrig (food), Fleury (health), SLC Agrícola (agribusiness), Porto Seguro (insurance), and Klabin (paper and derivatives) also maintain active dividend distribution programs.

Who Paid the Most in 2023: Data That Guides

To identify cheap stocks that pay monthly dividends with the best profitability, observe the payment history. In 2023, the biggest payers were:

These numbers show that even cheap or moderately priced stocks can generate significant returns when considering the time factor.

Predictions for 2024: Where to Invest?

Based on market confidence, interest rate reductions, and the good performance of Ibovespa in 2023, experts point to interesting possibilities:

• Petrobras (PETR4 and PETR3) – oil, gas, and petrochemical sector
• BrasilAgro (AGRO3) – agribusiness sector
• Banco do Brasil (BBAS3) – banking sector
• Melnick (MELK3) – civil construction
• Bradespar (BRAP4) – financial sector
• Aeris (AERI3) – wind energy
• Taesa (TAEE11) – energy sector
• PetroReconcavo (RECV3) – oil and gas

Criteria for Choosing Cheap Stocks That Pay Monthly Dividends

It’s not enough to look only at the stock price. Here are the factors every investor should evaluate:

Payout – The Distribution Percentage
Refers to the percentage of profit allocated to shareholders. The higher, the better for the investor. This information is always available in the company’s official documents.

Dividend Yield (DY)
This indicator measures the return of dividends relative to the stock price over a given period. An attractive DY signals good income potential.

Market Behavior
Follow news about the company, its sector prospects, and evaluations from other shareholders. Companies with transparent management and credibility tend to maintain consistent payments.

Financial Strength
Review previous payment history, financial statements, and performance in recent economic cycles. Companies that maintain dividends during crises show real strength.

Is It Really Worth It?

Yes. Investing in cheap stocks that pay monthly dividends is especially suitable for traditional and moderate investor profiles. The reason is clear: you can achieve predictable returns with less risk management.

The monthly cash flow allows you to protect yourself from inflation, diversify your investments, and even create financial freedom. The more stocks you hold in a company, the higher the returns from payments – enabling natural scalability of the investment.

Important: past performance does not guarantee future results. Always invest according to your profile and knowledge, seeking guidance from experts when necessary.

Diversifying across sectors, monitoring indicators, and staying updated on companies are the keys to maximizing returns safely.