This article first appeared on GuruFocus .
Evaluating the Sustainability of Banco do Brasil's Next Payout
Banco do Brasil SA BB Brasil ( BDORY ) recently announced a total dividend of $0.01 per share, with the ex-dividend date set for 2026-09-10. This upcoming distribution consists of $0.01 per share in cash dividends. As investors look forward to this payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using data from GuruFocus, let's look into Banco do Brasil SA BB Brasil's dividend performance and assess its sustainability.
What Does Banco do Brasil SA BB Brasil Do?
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Banco do Brasil SA BB Brasil is a Brazilian financial services company present in several countries. The business segments are Banking, Investments, Fund Management, Insurance, Electronic payments, and others. The majority of revenue is generated from its Banking segment. Banco do Brasil serves retail clients (small and midsize enterprises and individuals), wholesale clients (corporations), and public institutions. The products and services portfolio includes accounts, loans, cards, financing, and others.
A Glimpse at Banco do Brasil SA BB Brasil's Dividend History
Banco do Brasil SA BB Brasil has maintained a consistent dividend payment record since 2009. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Banco do Brasil SA BB Brasil's Dividend Yield and Growth
As of today, Banco do Brasil SA BB Brasil currently has a 12-month trailing dividend yield of 1.19% and a 12-month forward dividend yield of 1.17%. This suggests an expectation of decreased dividend payments over the next 12 months. Banco do Brasil SA BB Brasil's dividend yield of 1.19% is near a 10-year low and underperforms 93.06% of global competitors in the Banks industry, suggesting that the company's dividend yield may not be a compelling proposition for income investors.
Over the past three years, Banco do Brasil SA BB Brasil's annual dividend growth rate was -35.10%. Extended to a five-year horizon, this rate increased to -0.60% per year. And over the past decade, Banco do Brasil SA BB Brasil's annual dividends per share growth rate stands at 8.10%. Based on Banco do Brasil SA BB Brasil's dividend yield and five-year growth rate, the 5-year yield on cost of Banco do Brasil SA BB Brasil stock as of today is approximately 1.15%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2026-06-30, Banco do Brasil SA BB Brasil's dividend payout ratio is 0.07.
Banco do Brasil SA BB Brasil's profitability rank offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Banco do Brasil SA BB Brasil's profitability 5 out of 10 as of 2026-06-30, suggesting fair profitability. The company has reported positive net income for each year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Banco do Brasil SA BB Brasil's growth rank of 5 out of 10 suggests that the company has a fair growth outlook. Revenue is the lifeblood of any company, and Banco do Brasil SA BB Brasil's revenue per share , combined with the 3-year revenue growth rate , indicates a strong revenue model. Banco do Brasil SA BB Brasil's revenue has increased by approximately 6.10% per year on average, a rate that underperforms approximately 54.81% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Banco do Brasil SA BB Brasil's earnings increased by approximately -12.90% per year on average, a rate that underperforms approximately 88.94% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 10.30% underperforms approximately 50.2% of global competitors.
Next Steps for Dividend Investors
In conclusion, Banco do Brasil SA BB Brasil presents a mixed picture for dividend investors. The company maintains a very low payout ratio of 0.07 and has consistently reported positive net income over the past decade, which supports the sustainability of its dividend. However, the current dividend yield of 1.19% sits near a 10-year low, and the three-year dividend growth rate of -35.10% signals recent pressure on shareholder distributions. While the 10-year dividend growth rate of 8.10% and a 5-year EBITDA growth rate of 10.30% offer some encouragement, the negative three-year EPS growth rate of -12.90% remains a concern for future earnings power.
Value investors should weigh these factors carefully when considering Banco do Brasil SA BB Brasil for an income-focused portfolio. The low payout ratio provides a margin of safety, but the declining yield and earnings trend warrant close monitoring of upcoming quarterly reports. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener .
