Itau “opens its pocket” and almost beats Petrobras in paying dividends in the first quarter

Companies listed on the Brazilian Stock Exchange paid a record volume of dividends in the first three months of the year, totaling R$76.68 billion, a 49% increase over the same period last year. The biggest surprise was Itau (ITUB4), which distributed three times as much as it did in the same window of 2023, according to Meu Dividendo data.

The bank paid out R$16.62 billion to shareholders – 204% more than R$5.47 billion in the first quarter of last year – and almost surpassed Petrobras (PETR4), which distributed R$17.89 billion in the first three months of this year.

The large size of Itau's payments had implications for Itausa (ITUSA4), an investment holding company with a strong stake in the bank. The company also presented a 235% increase in distribution: from R$1.93 billion in the first three months of 2023 to R$6.47 billion in 2024.

However, Taj remains Brazil's largest dividend payer with Petrobras. Even after the controversy over the non-distribution of exceptional dividends for the fiscal year 2023, the state-owned oil company maintained its position as the largest dividend distributor – and with an increase in the volume paid.

Petrobras' total distributions in the first quarter of 2024 amounted to R$17.89 billion, 28% higher than R$13.94 billion in 2023.

Earnings classification

According to the Meu Dividendo website, 8 companies were responsible for 84% of the volume of profits distributed between January and March. Petrobras and Itao occupy first and second places in the ranking, followed by Vale (VALE3).

The mining company increased its dividends in this period by 29% compared to 2023. The amount paid to shareholders amounted to R$12.43 billion.

Only one company cut its dividend, BB Seguridade (BBSE3). The insurance company reduced its payments to shareholders by 33%, distributing R$2.52 billion compared to R$3.76 billion in 2023.

See the ranking of the largest dividend payers in the first quarter of 2024:

Dividends x JCP

Dividend distribution constituted the largest portion of the returns paid to shareholders in the first quarter. Of the R$76.68 billion paid, about 61% was distributed in the form of dividends, while 49% was paid in the form of equity interest (JCP). In 2023, the percentage of the job creation program was higher (42%).

With the changes to the rules of the Job Creation Program, approved by the National Congress in December 2022, companies are no longer allowed to distribute profits through the Job Creation Program in future fiscal years, in reference to previous years. “It is clear that this decrease in the ratio of JCP to earnings is temporary. We can expect an increase in the advertising of payments in this format throughout 2024,” says Wendel Venuti, CEO of the Meu Dividendo platform.