Many investors choose stocks or real estate funds on the Stock Exchange to have a passive and frequent income with good dividends. According to the Janus Henderson Global Dividend Index report, which analyzes the payment of dividends around the world, Vale appears among the ten global companies that most distribute their profits.
The mining company is in the ninth position among the best dividend payers in the world. How does this dividend payment work? Is it really interesting to invest in Vale? What other industries are good at distributing profits? See the opinion of analysts consulted by UOL.
Investors often focus on capital gains with the appreciation of the stock, but forget that it is possible, with a more long-term view, to have an equal or better remuneration via dividends or interest on equity.
Gustavo Cruz, strategist at RB Investimentos
What are dividends?
Guide Investimento analyst Rodrigo Crespi says that, after paying for its expenses, at the end of the fiscal year, the company needs to make a decision to invest its cash in new projects or remunerate its shareholders.
In this case, dividends are paid when the company chooses to remunerate investors who bet on the business thesis. “In general, a company that pays dividends is considered a value company, it is already more consolidated and has a strong cash flow. Thus, it manages to distribute its profits”, says Crespi.
Another form of income is interest on equity (JCP), which works as a kind of interest paid to investors.
As one of the largest mining companies in the world, Vale fits this profile as a solid company. Unlike technology companies that grow at a fast pace, but need foreign investment to maintain the pace of expansion, the Brazilian mining company advances in the market more slowly because it already holds a large share of the sector.
In February, Vale announced a profit distribution of US$ 3.5 billion (about R$ 18.5 billion). Another giant in its field, Petrobras announced the distribution of R$ 48.5 billion in dividends in May.
Is it interesting to invest in Vale thinking about profits?
For RB Investimentos analyst Gustavo Cruz, this can be a risky strategy. He says that mining companies are having a good time because of the boom in commodity prices. But this can be a punctual thing.
“Vale has been consolidating itself not only as a Brazilian company, but also as a global company. Thus, it manages to have payment predictability [de dividendos] more constantly. But nothing prevents the company from reinvesting a lot in the coming years and withdrawing a little of the resource that was being allocated to dividends”, says Cruz.
The capital can be used to build new units, develop projects and future businesses.
Naor Coelho, equity trader at Infinity Asset, says that Vale should benefit from the end of lockdowns in China, a country that buys iron ore, its main product.
In addition, an eventual appreciation of the dollar should also be favorable. “The possibility of Vale continuing to generate cash and profit is considerable, and, consequently, this will be reflected in the payment of dividends”, he says.
What other sectors to bet on?
For analysts, the main segments to observe in order to receive part of the distribution of profits from companies listed on the stock exchanges are utilities, with sanitation and energy businesses, banks and commodity companies, that is, more solid players that can preserve cash in times of instability.
“Companies with these characteristics tend to have greater cash predictability and the ability to distribute profit percentages above the minimum to their shareholders”, says Coelho, from Infinity.