February 26, 2026
Economic-Financial Analysis of Brazilian Dividend-Paying Companies from 2020 to 2024
João Cézar Félix da Cruz; Carlos Alberto dos Santos Silva
Summary prepared by the ResumeAI tool, an artificial intelligence solution developed by the Pecege Institute focused on synthesis and writing.
This study evaluates the economic-financial performance of five Brazilian dividend-paying companies between 2020 and 2024. The analysis focuses on gross dividend value, payout, dividend yield, and a set of liquidity, indebtedness, profitability, and stock analysis indicators. The companies, from the real estate, oil and gas, technology, food, and energy transmission sectors, were selected among the largest dividend distributors of the period to provide a comparative overview for investment.
The distribution of dividends is regulated by Law no. 6.404/1976, which establishes a minimum mandatory dividend. Market practice has consolidated the distribution of 25% of net profit as a standard (Farinelli, 2024). Total remuneration, or payout, includes dividends and Interest on Equity (JCP), which have distinct tax treatments. Dividends are exempt from income tax for the shareholder, as they derive from already taxed profit. JCP, on the other hand, are classified as financial expense for the company, allowing deduction from the Income Tax calculation base, which represents a tax benefit for the company (Gomes et al., 2015; Silva, 2024).
In the Brazilian macroeconomic context, with historically high interest rates, government bonds are often more attractive in terms of risk-return. Nevertheless, investors tend to prefer stocks that distribute more dividends, especially during periods of falling interest rates (Barros, 2022). This preference entails risks, as stocks with high dividend yield have a longer duration, making their market value more sensitive to fluctuations in interest rates. Therefore, specialists recommend that asset selection include other financial indicators, such as liquidity and market capitalization, to mitigate risks.
The analysis of financial statements through economic-financial ratios is fundamental to assessing an organization’s health (Assaf Neto, 2020). These indicators are organized into four categories: liquidity and activity, which measure the ability to meet short-term obligations; indebtedness and structure, which assess the dependence on third-party capital; profitability, which measures efficiency in generating profit; and stock analysis, which relates the company’s performance to the market value of its shares.
This study is justified by the Brazilian investor’s preference for dividend-paying stocks and the need for an analysis that transcends dividend yield. By evaluating a comprehensive spectrum of indicators, we seek to identify companies that not only remunerate well in the short term but also possess a robust financial structure and sustainable profit generation capacity, essential elements for long-term value creation.
The research adopted a quantitative and exploratory approach, with analysis of secondary data from the financial statements of five companies listed on the B3, from 2020 to 2024. The data were collected from the platforms “Status Invest” and “Instituto Assaf”. The companies were selected for their dividend yield history and sectoral diversification, being anonymized as Company A (real estate), Company B (oil and gas), Company C (technology), Company D (food), and Company E (energy transmission). Company B is state-controlled and the others are privately controlled.
The methodology involved the calculation and interpretation of selected indicators. For dividends, Dividend Yield, the ratio between the asset’s return and its market value (Assaf Neto, 2020), and Payout, the percentage of profit paid to shareholders (Silva, 2024; Peris, 2020), were analyzed. In the liquidity group, Current Liquidity and General Liquidity (Zedebski, 2020) were used. For indebtedness, the Third-Party Capital/Own Capital indicator (Assaf Neto, 2020) was employed.
In terms of profitability, Return on Assets (ROA), which measures the efficiency in generating profit from total assets (Ross et al., 2016), and Return on Equity (ROE), which indicates the return on shareholder capital (Cruz et al., 2014), were selected. Net Margin demonstrates the percentage of revenue that converts into profit (Saporito, 2015). For stock analysis, Earnings Per Share (EPS) and the Price/Earnings (P/E) ratio, which estimates the investment payback period based on profits (Bazzi, 2019), were used.
The data acquisition followed a rigorous procedure. Although the platforms provided pre-calculated indicators, the decision was made to detail the formulas and perform manual calculations when necessary, as for Company D in 2022. For this purpose, raw values of accounts such as Current Assets, Current Liabilities, Net Equity, and Net Profit were collected directly from the financial statements, ensuring the consistency and transparency of the analysis.
The analysis of Dividend Yield (DY) revealed a standout performance by Company A (real estate), with the highest average in the period (37.26%). Company B (oil and gas) was next, with its preferred (26.00%) and common (23.64%) shares. Companies C, D, and E presented lower averages, with 12.19%, 11.07%, and 10.87%, respectively. The discrepancy highlights a significantly higher return for Companies A and B in proportion to their market value (Assaf Neto, 2020).
Regarding the Payout, Company B registered the highest average (88.22%), followed by Company A (63.94%) and Company E (58.79%). Companies C and D had the lowest rates (17.28% and 16.14%). The result shows that, although Company B distributed the largest share of its profit, this did not translate into the highest Dividend Yield, led by Company A. This dissociation reinforces the importance of joint analysis, as a high Payout may signal little profit retention for reinvestment (Silva, 2024).
In the liquidity analysis, Company A showed the highest average Current Ratio (4.14), indicating ample capacity to cover short-term debts. Company E also presented a good result (2.11), followed by C (1.65) and D (1.25). Company B registered the lowest average (0.99), signaling that its current assets were, on average, insufficient to cover its obligations of the same maturity, a warning sign according to Zedebski (2020). In the General Liquidity, Company C (1.29) and Company E (1.27) stood out. Companies A (0.57), D (0.56), and B (0.40) registered ratios below 1, suggesting greater pressure on long-term payment capacity.
The level of indebtedness, measured by the Third-Party Capital/Own Capital ratio, revealed distinct structures. Company B showed minimal dependence on third-party capital (average ratio of 0.002). Company A also demonstrated a conservative structure (0.659). In contrast, Companies C (1.611) and E (1.642) showed greater dependence on debt. The most extreme case was Company D, with an average of 8.785, indicating that for every real of own capital, the company had almost nine reals of debt. According to Assaf Neto (2020), such a high ratio points to high financial risk.
The profitability analysis showed that, in Return on Assets (ROA), Company E was the most efficient, with an average of 10.73%. Companies B (9.21%) and A (8.61%) also showed good results. In Return on Equity (ROE), Company D registered an extraordinarily high average of 71.60%, far above Company E (27.52%), Company A (25.37%), and Company B (24.91%). According to Cruz et al. (2014), this suggests a high return to shareholders. However, contextualized with Company D’s extremely high indebtedness, this ROE may be a symptom of the financial leverage effect, which amplifies returns on a small equity base but exponentially increases risk.
The Net Margin corroborated the strength of Company E, which led with an average of 53.79%, much higher than Company A (18.41%), Company B (17.47%), Company C (2.96%), and Company D (2.80%). This result suggests a business model with high entry barriers and/or effective cost control, characteristic of the energy transmission sector. A high and stable net margin is a strong indicator of competitive advantage (Saporito, 2015).
Stock analysis indicators for 2024 showed that Company E presented the highest Earnings Per Share (EPS), with R$4.92, followed by Company A (R$3.58). This indicator shows the portion of profit per share, but should not be analyzed in isolation (Bazzi, 2019). In the Price/Earnings (P/E) ratio, which indicates the time to recover the investment, Company A presented the best result (1.55), suggesting that its shares were relatively cheap. Company B, on the other hand, presented the highest P/E (12.90), indicating a more stretched market valuation.
The discussion of the results allows for the mapping of distinct investment profiles. Companies A and B emerge as alternatives for short and medium-term strategies, focused on passive income via dividends, due to their high Dividend Yield and Payout. However, there are risks. Company A, despite its strong current liquidity, operates in the real estate sector, known for its cyclicality. Company B presents weaker liquidity indicators, although its state control may mitigate the risk, suggesting potential governmental support.
In contrast, Company E consolidates itself as the most robust long-term investment alternative. Although its historical Dividend Yield is not the highest, its financial fundamentals are superior. The company combines excellent liquidity indicators, low dependence on third-party capital, and consistently high profitability ratios (ROA and ROE). The ROA, the highest among those analyzed, attests to its efficiency in generating returns from assets. The high Net Margin reinforces the perception of a business with strong competitive advantages. These factors indicate a superior capacity for sustainable value creation, making it a prudent choice for investors with a longer time horizon. Company D, despite a punctually high ROE, presents an unfavorable risk profile due to its very high dependence on third-party capital, making it the least recommended option. It is concluded that the objective was achieved: it has been demonstrated that the multifactorial analysis of economic-financial indicators allows for a more robust investment evaluation than the isolated analysis of dividends, identifying Company E as the most solid alternative for the long term and Companies A and B as viable options, with reservations, for the short term.
References:
Assaf Neto., Alexandre. 2020. Corporate Finance and Value. 8th ed. SP: Atlas.
Barros, Vinícius Soares Monteiro de. 2022. Stock investment strategy based on dividends and interest rate behavior. Dissertation (professional master’s MPFE) – Getúlio Vargas Foundation, School of Economics of São Paulo.
Bazzi, Samir. 2019. Analysis of financial statements. 2nd ed. São Paulo: Pearson.
Cruz, June Alisson Westarb; Guindani, Roberto Ari; Andrich, Emir Guimarães; Andrich Rene Guimarães. 2014. Corporate finance: analysis of financial and investment statements. Curitiba: Intersaberes.
Farinelli, Tiago César. 2024. Essays on dividend policy, corporate governance, and share buybacks in Brazilian companies. Thesis (Doctorate in Controllership and Accounting) – Faculty of Economics, Administration and Accounting of Ribeirão Preto, University of São Paulo, Ribeirão Preto, SP, Brazil.
Gomes, P. H. da C. P. N. ; Takamatsu, R. T., & Machado, E. A. 2015. Determinants of Equity Remuneration Policy: dividends versus interest on equity. REUNIR Revista De Administração Contabilidade E Sustentabilidade, 5(2), 62-84.
Peris, Renata Wandroski. Corporate finance. 2020. São Paulo: Contentus.
Ross, Stephen A; Westerfield, Randolph W ; Jordan, Bradford D. 2016. Fundamentals of Corporate Finance. 11th ed. New York. McGraw-Hill Education.
Silva, Daniel Bagodi Batista da. 2024. Dividend Payments in Ibovespa: An Analysis of Pre and Post-Covid-19 Effects. Article (master’s) – Fundação Escola de Comércio Álvares Penteado – FECAP. São Paulo, Brazil.
Zedebski, Edson Miguel. 2020. Financial management. São Paulo: Contentus.
Executive summary from the Final Project of the Specialization in Finance and Controllership of the MBA USP/Esalq
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