Most recommended dividend stocks for April; VALE is the favorite and TIMS3 leaves the list

The B3 dividend index (Idiv) fell 1.2% in March, closing the first quarter with an accumulated loss of 3.8%, compared to the 4.5% devaluation of the Ibovespa in the period.

For April, analysts made few changes to the recommended dividend portfolios. The mining company Vale (VALE3) remains in the lead, with seven nominations, followed by Banco do Brasil (BBAS3), BB Seguridade (BBSE3) and Telefônica Brasil (VIVT3), tied with five nominations.

The third position is divided between Itaú Unibanco (ITUB4) and Petrobras (PETR4), with four choices each. TIM shares (TIMS3), new in March, were replaced in two portfolios and left the highlights list this month.

Check out the analyzes for each role:

Every beginning of the month, the InfoMoney brings a survey of the stock portfolios recommended by ten brokers for those who focus on dividends, pointing out the five preferred stocks by analysts. The number could be higher if there is a tie, as happened again.

See more details on the six most recommended companies for April:

Vale (VALUE3)

The company lost one nomination, but remains isolated in the lead, with seven choices. At Santander Corretora, the assessment is that the fundamentals regarding the price of ore remain solid in the short term, especially as we experience weaker production seasonality in Brazil and Australia. “Looking ahead to 2024, we expect the iron ore market to remain relatively balanced.”

In the medium term, the outlook also remains positive, supported by the supply restriction thesis. For analysts, persistent supply challenges should sustain iron ore prices above US$100 a ton for longer. For 2024, they estimate that the average price of the product should be US$105 per ton.

Banco do Brasil (BBAS3)

The institution opens the block of dividend papers with five recommendations in April. In a report, BTG Pactual recalls that official estimates suggest an 8% growth in BB’s earnings per share this year.

Furthermore, with a dividend yield (return via earnings) projected at around 11% for the period, analysts believe that there is still a return to be captured. They highlight that, in the release of the fourth quarter balance sheet, the bank informed that its board of directors approved an increase in the share of profits to be distributed to shareholders in 2024, from 40% to 45%.

BB Seguridade (BBSE3)

In BTG’s assessment, the company stands out as an “exceptionally defensive” option, due to several factors, such as: absence of default risk; high margins; favorable competitive scenario; track record of good corporate governance; and distribution of around 90% to 95% of profits. “We believe that BB Seguridade will pay more than its market value in dividends until 2033 (when the agreement with BB ends), making it one of the ‘safest’ theses for this year.” The return on earnings projected by BTG for 2024 is 11%.

Telefônica Brasil (VIVT3)

The company, owner of the Vivo brand, is the largest mobile phone operator in Brazil. In Ágora’s assessment, telecommunications companies are benefiting from positive operational trends, “which will likely result in good cash generation and, therefore, potential returns for shareholders”. The broker also highlights that expenses and investments remain under control. “We see VIVT3 with a dividend yield of 7.0% for this year, thus offering good protection for investors.”

Itaú Unibanco (ITUB4)

The bank released another strong set of results in the fourth quarter of 2023, especially compared to its private peers, says BTG. In a report, analysts comment that the financial margin and service revenue, for example, exceeded estimates. “Although the potential return on stocks is not as high as in the past (stocks are up +40% in the last 12 months), the payout [fatia do lucro distribuída aos acionistas] higher performance and high quality results keep Itaú as one of our preferences in the sector.”

Petrobras (PETR4)

BB Investimentos highlights that the state-owned company’s numbers in the fourth quarter of 2023 were slightly below market expectations, but the real reason for the fall in shares was the absence of the announcement of extraordinary dividends.

“We see the recent dividend episode as short-term noise, given that the company distributed a yield equivalent to 13.4% in 2023, and maintained the rule of distributing 45% of free cash flow, a higher percentage than the main global peers.” In the brokerage’s opinion, Petrobras maintains good prospects for production growth, with reduced extraction costs, which should continue to produce good cash generation and dividends.