Top Brazilian (BOVESPA) Dividend Stocks

Top Brazilian (BOVESPA) Dividend Stocks

UPDATED Feb 04, 2023

What are the best Brazilian (BOVESPA) Dividend Stocks?

According to our Simply Wall St analysis these are the best Brazilian dividend companies. We look for companies with high quality dividends and healthy balance sheets to find the top Dividend Stocks.

Our criteria to find Top Dividend Companies

High Yield

  • Companies with a high dividend yield are more attractive due to the higher expected income for each dollar invested.
  • Yields vary between markets, so we focus on the top dividend payers in each market.

What do we look for?

  • Is the yield in the top 25% of the market's dividend payers.

Consistent Dividends

  • Companies with a strong track record of paying a consistent and growing dividend are the most attractive.
  • If the dividend has been cut substantially in the past, then it's difficult to be confident about future payments.

What do we look for?

  • Has the dividend been stable over the last 10 years.
  • Has the dividend grown over the last 10 years.

Dividend Cover

  • Ideally the company doesn't pay out all of its earnings, neglecting future growth.
  • If a company is unable to afford its dividend, then it will probably lead to a dividend cut and share price erosion.

What do we look for?

  • Are dividends covered by earnings.
  • Are dividends forecast to be covered by earnings in the future.

Healthy Balance Sheet

  • Investors want to make sure the company is positioned to cover its debts. Repayments on debt typically take priority over shareholder return initiatives.

What do we look for?

  • Does the company have a manageable level of debt.
  • Is the company able to cover its interest repayments.

3 companies meet this criteria in the Brazilian market

Bsm Supervisao De Mercados operates as a subsidiary of B3 S.A.

Dividend Criteria

  • Earnings Coverage

  • Growing Dividend

  • Notable Dividend

  • High Dividend: B3SA3's dividend (4.72%) is low compared to the top 25% of dividend payers in the BR market (7.69%).

  • Future Dividend Coverage

  • Stable Dividend

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Rewards

  • Earnings are forecast to grow 13.08% per year

Risks

No risks detected for B3SA3 from our risks checks.

View all Risks and Rewards

Allied Tecnologia S.A., a technology company, operates in the consumer electronics market in Brazil.

Dividend Criteria

  • Earnings Coverage

  • High Dividend: ALLD3's dividend (10.89%) is in the top 25% of dividend payers in the BR market (7.69%)

  • Notable Dividend

  • Future Dividend Coverage

  • Growing Dividend

  • Stable Dividend

See Full Stock Report

Rewards

  • Price-To-Earnings ratio (6.9x) is below the BR market (9.8x)

  • Earnings are forecast to grow 61.71% per year

Risks

  • Does not have a meaningful market cap (R$509M)

  • Profit margins (1.4%) are lower than last year (5.9%)

View all Risks and Rewards

TIM S.A., a telecommunications company, provides mobile voice and data services, broadband internet access, value-added services, and other telecommunications services and products in Brazil.

Dividend Criteria

  • Earnings Coverage

  • Growing Dividend

  • Future Dividend Coverage

  • Notable Dividend

  • High Dividend: TIMS3's dividend (2.78%) is low compared to the top 25% of dividend payers in the BR market (7.93%).

  • Stable Dividend

See Full Stock Report

Rewards

  • Trading at 67.8% below our estimate of its fair value

  • Earnings are forecast to grow 23.04% per year

Risks

  • Profit margins (10.5%) are lower than last year (16.5%)

View all Risks and Rewards
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