Brazilian Companies Distribute R$222 Billion in Dividends, Surpassing Expectations
The distribution of dividends by Brazilian companies has increased by 29.3% in the first three quarters of 2024. This growth has surpassed the less optimistic expectations set in December of the previous year. According to a survey by fintech Meu Dividendo, publicly traded companies paid R$222.18 billion ($39.67 billion) in dividends between January and September.
This amount exceeds the R$171.8 billion recorded in the same period of 2023. The entire previous year saw a total payout of R$224.2 billion. The strong economic performance and favorable exchange rates for exporters have contributed to this year’s positive results.
Despite the increase in total dividends, the number of companies making payments has decreased. Only 189 companies distributed dividends, which is 8% less than the 206 companies in 2023. Petrobras, Brazil’s largest publicly traded company, remains the cornerstone of these payments.
Petrobras distributed R$69.3 billion ($12.38 billion) during this period, more than double the amount paid by the second-largest payer, Itaú Unibanco, which distributed R$27.2 billion ($4.86 billion). Vale, another historically generous dividend payer, has not matched its performance from recent years.
Analysts expect Vale to announce additional dividend payments later this year. However, the company’s third-quarter results may be more modest due to lower iron ore prices caused by decreased demand and oversupply in China.
Dividend expectations remain focused on sectors traditionally known for good shareholder returns: banks, energy, and other financial companies. Ilan Arbetman from Ativa Investimentos suggests that the shopping mall sector is undergoing a maturation and consolidation process.
This process may lead shopping mall companies to become consistent dividend payers in the future. The trend indicates a shift towards more stable and reliable dividend-paying sectors in the Brazilian market.
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Brazil — Live Market Board
+0.46%
183,827.59
+0.46%
65,071.30
+0.20%
11,055.91
-0.73%
2,782,561
-0.59%
2,558.92
-0.79%
60,220.45
+0.32%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 183,827.59 | +0.46% | +21.85% | 182,991.13 | 168,310 | 167,142 | — |
| USD/BRL | 5.16 | +0.01% | -5.13% | 5.16 | 5.18 | 5.14 | — |
| SELIC | 14.00% | — | — | — | — | — | |
| PETR4 | 41.64 | -0.05% | +35.19% | 41.66 | 41.97 | 41.15 | 41,499,400 |
| VALE3 | 72.97 | +0.83% | +30.75% | 72.37 | 73.54 | 72.66 | 17,658,000 |
| ITUB4 | 38.60 | -1.03% | +4.57% | 39.00 | 39.34 | 38.39 | 29,487,800 |
| BBDC4 | 16.85 | +0.36% | +3.50% | 16.79 | 16.90 | 16.67 | 19,416,900 |
| BBAS3 | 19.37 | +0.47% | +0.73% | 19.28 | 19.44 | 19.16 | 11,069,200 |
| B3SA3 | 14.26 | -0.21% | +12.73% | 14.29 | 14.47 | 14.11 | 33,037,800 |
| ABEV3 | 14.89 | -0.80% | +21.91% | 15.01 | 15.07 | 14.81 | 16,453,100 |
| WEGE3 | 47.59 | +0.49% | +29.99% | 47.36 | 48.08 | 47.36 | 3,364,600 |
| PRIO3 | 59.14 | -0.19% | +50.67% | 59.25 | 59.81 | 58.74 | 3,325,600 |
| SUZB3 | 41.33 | +2.35% | -23.55% | 40.38 | 41.48 | 40.35 | 3,914,900 |
| RENT3 | 34.68 | -0.09% | +0.84% | 34.71 | 34.96 | 34.35 | 7,979,100 |
| AZZA3 | 15.89 | -2.63% | -53.76% | 16.32 | 16.42 | 15.82 | 1,330,300 |
| CSNA3 | 4.30 | +0.47% | -42.65% | 4.28 | 4.41 | 4.26 | 10,076,100 |
| GGBR4 | 24.69 | +2.19% | +51.38% | 24.16 | 24.85 | 24.18 | 7,047,600 |
| ENEV3 | 24.21 | -1.38% | +70.49% | 24.55 | 24.64 | 23.99 | 9,297,000 |
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