Corporate dividends outpace inflation

The Extended National Consumer Price Index (IPCA), which measures official inflation in the country, was 0,84% in February. The IBGE released the index last Friday morning (10) and the index accumulated in the last twelve months was 5.60%. Are stock dividends worth it?

The percentage fulfills market speculation that both the basic interest rate, the Selic, and inflation would not give in so soon to the desire to lower. The good news is that some variable income investments can pay off, even in a favorable scenario for fixed income.

According to the survey carried out by TradeMap, considering the dividend yield (DY) of the last twelve months until March and in the portfolio of the Brasil 100 index (IBrX 100), some shares pay dividends that offset the IPCA.

The list features 41 stocks with a projected DY greater than 4% for 2023. Taking inflation as a referencel, 38 assets outweigh income and pay good dividends.

Company	Code	Segment	Dividend Yield % 12 months to March 2023
PETROBRAS	PETR4	Refine. Oil	51,57
PETROBRAS	PETR3	Refine. Oil	48,25
TAESA	TAEE11	Electricity	15,47
CEMIG	CMIG4	Electricity	14,13
CSNMINERACAO	CMIN3	Metallic Minerals	14,11
BB SECURITY	BBSE3	Insurers	13,28
BANK OF BRAZIL	BBAS3	Banks	12,74
COPEL	CPLE6	Electricity	12,62
EDP BRAZIL	ENBR3	Electricity	12,30
CARDS	GGBR4	steel industry	12,29
SANTOS BRP	STBP3	Storage	11,15
CPFL ENERGIA	CPFE3	Electricity	10,96
CIELO	CIEL3	Miscellaneous Financial	10,34
MARFRIG	MRFG3	Carnes	10,28
METALLURGICAL GERDAU	GOAU4	steel industry	10,18
MOVED	MOVI3	Car rent	9,49
BRADESPAR	BRAP4	Metallic Minerals	9,44
NATIONAL STEEL	CSNA3	steel industry	8,67
ENAUTA PART	ENAT3	Refine. Oil	8,01
VALE	VALE3	Metallic Minerals	7,55
TELEFONICA	VIVT3	Telecommunications	6,17
SANTANDER	SANB11	Banks	6,16
BRADESCO	BBDC3	Banks	6,13
KLABIN	KLBN11	Paper	6,00
FLEURY	FLRY3	Diagnostics	5,96
SAFE HARBOR	PSSA3	Insurers	5,90
JBS	JBSS3	Carnes	5,68
AMBEV	ABEV3	Drinks	5,67
ENGIE BRAZIL	EGIE3	Electricity	5,66
BRADESCO	BBDC4	Banks	5,63

Should I invest to receive dividends above inflation?

Dividend yields above inflation and interest rate are seen as a good opportunity in some cases. The reason is because in addition to the possibility of gain, the investor also counts on the performance of the stock and thus, more return.

Companies that have a healthy capital structure, no worrying debt and that can share revenue with shareholders tend to be the ones that compensate for inflation. But calm down, this is not a rule, it is important to analyze each case before putting your money.

Commodity companies have become good dividend payers, both because of the high price of oil and ore. Banks and the electricity sector have a history of yielding above.

Very different from companies that struggle to get resources with high interest rates, even more so if they have debts to pay.

Just looking at the dividends, the investor can fall into the illusion that it is a good deal. Something you don’t want, right? Don’t forget to think about other factors such as whether the company continues in the same mold and oscillation over time.

Ready to invest in dividends that pay above inflation?