The Highest Paying Dividend Stocks in Brazil: The Complete Guide to Passive Income

If you are looking to build a passive income portfolio, dividend-paying stocks are an excellent entry point. But what is the secret? It’s not simply choosing the stock with the highest dividend yield. In this guide, we will demystify all of this and show why some companies deserve your attention.

What to Expect from Dividends

Dividends are nothing more than a share of the profits that companies distribute to shareholders. While some companies prefer to reinvest everything into growth, others reward those who invested in them. The question is: which model makes more sense for you?

The answer depends on what type of investor you are. If you want regular income, dividends are interesting. If you want aggressive growth, you might prefer companies that reinvest profits.

Top 10 Dividend-Paying Stocks

The table below shows the main stocks that pay the most dividends at the moment:

Attention: The values presented are as of the time of writing. Always consult updated data before investing.

Why Choose These Stocks

Each of these companies was selected based on specific criteria. Petrobras, for example, offers an impressive dividend yield of 42.83%, but this reflects the cyclical nature of oil. Unipar, with 14.68%, operates in segments with predictable demand.

Diversification across sectors is essential. While Engie is in renewable energy, Brasil Agro operates in agricultural lands. This protects your portfolio from sector-specific shocks.

Metrics You Should Monitor

Before investing, understand two essential concepts:

Dividend Yield: Calculated by dividing the dividend paid per share by the current share price. If a company paid R$ 2.00 per share over 12 months and the share costs R$ 50.00, the dividend yield is 4%. This helps compare returns across different stocks.

Payout: Shows what percentage of profits the company distributes. If a company has a profit of R$ 1 million and distributes R$ 500,000 in dividends, the payout is 50%. A sustainable payout leaves room for reinvestment and growth.

Risks You Cannot Ignore

Not everything is smooth sailing. Dividend-paying stocks face real risks:

Price fluctuation: The stock value can fall regardless of dividends. You might receive R$ 200 in dividends while your position depreciates R$ 1,000.

Dividend cuts: Companies may reduce or suspend payments during crises. Petrobras is an example: during periods of falling oil prices, dividends drop drastically.

Inflation: If dividends do not keep up with Brazilian inflation, you lose purchasing power. That’s why companies with a history of dividend growth are more attractive.

Tax changes: For now, dividends are tax-exempt in Brazil. But future reforms could change that.

Liquidity: Some stocks have low trading volume. You might get stuck with your shares or pay a high price to exit.

Strategies to Earn More

Having the right stocks is just the beginning. Here are tactics that work:

1. Reinvest dividends: Instead of spending, buy more shares. This accelerates the power of compound interest. Year after year, you will have more shares generating more dividends.

2. Diversify across sectors: Don’t put everything into banks. Mix energy, commodities, utilities, and agribusiness.

3. Monitor regularly: Financial health changes. If a company starts having problems, exit before dividend cuts.

4. Prefer growth: A company that increases dividends year after year is safer than one that pays a lot but is stagnant.

5. Use dividend ETFs: If you don’t want to pick each stock, funds that track dividend-paying stocks offer automatic diversification.

How to Calculate What You Have Already Received

If you’ve been investing for years, how many dividends have you earned? There are two ways:

Income statement: Request it from the company or access your investment platform. It consolidates all dividends for the year in one document. The easiest way.

Broker statement: Filter for dividend transactions in your account. Then add everything up. It’s more work but works.

What to Watch Before Investing

Not every dividend-paying stock is good. Evaluate:

• History: Has the company paid consistently over the last 5-10 years?
• Financial health: Is the balance sheet healthy? How much debt does it have?
• Sector: Stable sectors (public utilities, telecommunications, consumer) pay higher dividends.
• Official policy: Read the dividend policy on the Investor Relations website. It shows the company’s true intentions.
• Sustainable payout: If the company distributes more than 80% of profits, there’s a risk of future cuts.

Conclusion

Investing in dividend-paying stocks is a solid way to build passive income. But it requires patience, research, and acceptance of risks. The ten stocks listed here have proven histories, but the future is not guaranteed.

The secret is not to fall into the trap of only seeking the highest dividend yield. A stock paying 40% now could pay 5% next year. Prioritize stability, consistent growth, and diversification.

With these tools in hand, you are prepared to build a dividend portfolio that generates durable and sustainable passive income. Start small, reinvest, diversify, and let time work in your favor.