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Top Brazilian (BOVESPA) Dividend Stocks
UPDATED Jun 28, 2022
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
Caixa Seguridade Participações S.A. provides various life and non-life insurance products in Brazil.
Dividend Criteria
Earnings Coverage
Future Dividend Coverage
High Dividend: CXSE3's dividend (8.39%) is in the top 25% of dividend payers in the BR market (7.73%)
Notable Dividend
Growing Dividend
Stable Dividend
Rewards
Trading at 43.3% below our estimate of its fair value
Earnings are forecast to grow 17.95% per year
Earnings grew by 13.1% over the past year
Risks
No risks detected for CXSE3 from our risks checks.
Bradespar S.A., through its interest in VALE, operates as a mining company in the production of iron ore, iron ore pellets, and nickel.
Dividend Criteria
Earnings Coverage
Growing Dividend
High Dividend: BRAP3's dividend (39.13%) is in the top 25% of dividend payers in the BR market (7.73%)
Notable Dividend
Future Dividend Coverage
Stable Dividend
Rewards
Trading at 91.2% below our estimate of its fair value
Revenue is forecast to grow 27.07% per year
Earnings have grown 46.2% per year over the past 5 years
Risks
Earnings are forecast to decline by an average of 50.2% per year for the next 3 years
High level of non-cash earnings
Makes less than USD$1m in revenue (R$0)
Dividend Criteria
Earnings Coverage
Growing Dividend
Future Dividend Coverage
Notable Dividend
High Dividend: TIMS3's dividend (3.36%) is low compared to the top 25% of dividend payers in the BR market (7.73%).
Stable Dividend
Rewards
Trading at 64.5% below our estimate of its fair value
Earnings are forecast to grow 12.84% per year
Earnings grew by 57.5% over the past year
Risks
No risks detected for TIMS3 from our risks checks.