Dividends paid by Brazilian companies fall 40.5% in 2023

The distribution of dividends, which represents a part of companies’ profits destined for shareholders, registered a drop of 40.5% in Brazil last year, according to international asset manager Janus Henderson Investors. In total, US$20.7 billion was released. Globally there was a growth of 5.6%, bringing the amount to US$ 1.66 billion.

Among those responsible for this drop in the Brazilian scenario, Petrobras stands out, which reduced the dividends paid to shareholders by US$ 10 billion. The oil company that was the second largest dividend payer in the world in 2022, did not appear among the top 20 in 2023. The three leading companies in the world ranking were American: Microsoft, Apple and Exxon Mobil.

The drop in Petrobras’ profit distribution does not include the state-owned company’s decision not to pay extraordinary dividends, announced on March 7, which resulted in a drop of around 10% in the value of shares the following day and a loss in market value exceeding R$55 billion.

Another Brazilian company that was already well positioned in the world ranking of dividend payers, the mining company Vale, reduced its distribution by US$ 1.2 billion. In 2021, it was the eighth largest distributor worldwide. Ambev also reduced the release of resources.

The cuts in distributions by Brazilian companies contrast with the strong growth in the distribution of dividends by the country’s banks.

Janus Henderson attributes the good performance of financial institutions, on a global scale, to the ability to obtain healthier profits with the normalization of interest rates, after years of extremely loose monetary policy, with the best results coming from emerging markets.