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Why Banco Bradesco (BBD) is a Top Dividend Stock for Your Portfolio
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Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.
Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Banco Bradesco (BBD - Free Report) is headquartered in Osasco, and is in the Finance sector. The stock has seen a price change of 69.63% since the start of the year. Currently paying a dividend of $0.04 per share, the company has a dividend yield of 5.91%. In comparison, the Banks - Foreign industry's yield is 3.16%, while the S&P 500's yield is 1.5%.
Looking at dividend growth, the company's current annualized dividend of $0.19 is up 75.9% from last year. Over the last 5 years, Banco Bradesco has increased its dividend 4 times on a year-over-year basis for an average annual increase of 3.80%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Banco Bradesco's current payout ratio is 7%, meaning it paid out 7% of its trailing 12-month EPS as dividend.
BBD is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2025 is $0.42 per share, which represents a year-over-year growth rate of 27.27%.
Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. However, not all companies offer a quarterly payout.
High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, BBD is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
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Why Banco Bradesco (BBD) is a Top Dividend Stock for Your Portfolio
Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.
Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Banco Bradesco (BBD - Free Report) is headquartered in Osasco, and is in the Finance sector. The stock has seen a price change of 69.63% since the start of the year. Currently paying a dividend of $0.04 per share, the company has a dividend yield of 5.91%. In comparison, the Banks - Foreign industry's yield is 3.16%, while the S&P 500's yield is 1.5%.
Looking at dividend growth, the company's current annualized dividend of $0.19 is up 75.9% from last year. Over the last 5 years, Banco Bradesco has increased its dividend 4 times on a year-over-year basis for an average annual increase of 3.80%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Banco Bradesco's current payout ratio is 7%, meaning it paid out 7% of its trailing 12-month EPS as dividend.
BBD is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2025 is $0.42 per share, which represents a year-over-year growth rate of 27.27%.
Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. However, not all companies offer a quarterly payout.
High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, BBD is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).