Banco do Brasil (BBAS3) is XP’s dividend ‘bet’

Banco do Brasil (BBAS3) is XP’s dividend ‘bet’
Banco do Brasil (BBAS3) is XP’s dividend ‘bet’

02/02/2024 10:17

Banco do Brasil (BBAS3) – Photo: Marcelo Camargo/Agência Brasil

XP increased its stake in shares of Banco do Brasil (BBAS3) in its dividend portfolio, increasing the portfolio’s exposure to securities from 5% to 10%.

The rebalancing of the Top Dividends XP Portfolio reduced the weight of the energy company Engie (EGIE3) from 15% to 10%, countering the increase in BBAS3 to 10%. The target price for securities Bank of Brazil were maintained at R$61.00.

Regarding the prospects for Banco do Brasil (BBAS3) shareholders, XP analysts infer that they continue to “expect robust results in 4Q23, solid guidance and the maintenance of a high dividend yield by the company.”

In January, the XP dividend portfolio had a return of -3.3%, following the fall of the Ibovespa Index, of -4.8%.

Banco do Brasil (BBAS3) and Itaú Unibanco (ITUB4) in the dividend portfolio

In the financial sector, the Banco do Brasil (BBAS3) and the Itaú Unibanco (ITUB4) occupy the “banks” part of the Research portfolio. In February, the portfolio’s exposure was divided as follows:

  • Auren (AURE3): 10%;
  • Banco do Brasil (BBAS3): 10%;
  • Copasa (CSMG3): 10%;
  • Copel (CPLE6): 10%;
  • Engie Brasil (EGIE3): 10%;
  • Itaú Unibanco (ITUB4): 15%;
  • Petrobras (PETR4): 5%;
  • Taesa (TAEE11): 10%;
  • Tim (TIMS3): 10%;
  • Vale (VALE3): 10%.

Itaú BBA exchanges B3 (B3SA3) for BBAS3 in its dividend portfolio

Banco do Brasil (BBAS3) is the new addition of Itaú BBA to its dividend portfolio, according to a report from the house on January 25th.

When informing about the change in your Dividend Portfolio at the beginning of the year, the Itaú BBA pointed out that the Banco do Brasil (BBAS3) it must show “more robust short-term results than those of B3, at the same time that the level of dividends paid must also be considerably higher.”

According to BBA analysts, the dividend yield (DY) projected for a company that represents the stock exchange in Brazil is 6%, against the 12% expected from Banco do Brasil and “a still discounted valuation”.

The article is in Portuguese


Tags: Banco Brasil BBAS3 XPs dividend bet



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