- Operation in an essential sector with almost insurmountable entry barrier
- Stable concession contract until 2045, providing long-term visibility
- Extremely predictable cash flow with low sensitivity to economic cycles
- Clear and consistent dividend policy, with semi-annual distributions
- Proven ability to maintain dividends even during crises (2020-2021)
- Recent expansion to 23 new municipalities in 2024, with investments of R$ 1.2 billion
Pocket Option: Proven strategies for selecting stocks with the best dividends in 2025
The Brazilian economic scenario of 2025, with the Selic rate on a downward trend, has created a unique window of opportunity for investors seeking stocks with the best dividends. With some companies paying up to 9.5% per year, this strategy has become essential for those looking to protect their assets from inflation and generate consistent passive income. Our exclusive analysis, based on data from 158 Brazilian companies, reveals which stocks with the highest dividends offer the best balance between current yield and future sustainability.
The current landscape of stocks with the best dividends in Brazil
The Brazilian market for stocks with the best dividends has undergone fundamental transformations in recent years. The 2022 presidential election and the subsequent implementation of new economic policies have redefined the scenario for investors. With inflation controlled at 3.8% in 2025 and the Selic rate on a downward trend (currently at 8.75%), the macroeconomic environment particularly favors companies with established dividend distribution policies.
The current combination of falling interest rates, sustained economic recovery, and progress in structural reforms has created an extremely fertile ground for investors seeking stocks with higher dividends. This rare conjunction of positive factors allows companies with consolidated business models to distribute significant portions of their profits without compromising essential investments.
The sectoral mapping conducted by Pocket Option analysts identified three distinct categories of dividend payers in the current Brazilian market: “Adaptable Dinosaurs” (utilities and traditional banks that have modernized), “Growing Distributors” (technology and retail companies that have reached maturity) and “Hidden Gems” (medium-sized companies with excellent cash generation, but still little known by the market).
| Sector | Average Dividend Yield (2024) | Outlook for 2025 | Risk Analysis |
|---|---|---|---|
| Utilities (Energy/Sanitation) | 7.5% – 9.5% | Stable with upward trend | Moderate (regulatory risks) |
| Banks | 6.0% – 8.0% | Stable | Low-Moderate |
| Insurance | 5.5% – 7.5% | Rising | Low |
| Telecommunications | 4.5% – 6.5% | Stable | Moderate |
| Retail | 3.0% – 5.0% | Rising for selected companies | Moderate-High |
Understanding the concept of dividend yield and its importance
Before diving into the best options for stocks with the best dividends available in the Brazilian market, we need to deeply understand the concept of dividend yield and why it is crucial for your strategy. This indicator goes far beyond a simple percentage – it reveals the relationship between the compensation offered and the amount invested, allowing objective comparisons between different opportunities.
How to correctly calculate dividend yield
Calculating dividend yield may seem simple at first glance, but it requires attention to detail for a truly accurate and useful analysis. The basic formula is:
Dividend Yield = (Annual dividend per share / Current share price) x 100
The differential of the Brazilian market, however, lies in the peculiarities that many beginning investors ignore. Unlike the US, where dividends follow predictable quarterly calendars, in Brazil companies often distribute earnings irregularly, combining various types of remuneration that require careful analysis.
| Type of Distribution | Characteristics | Tax Impact | Strategic Considerations |
|---|---|---|---|
| Dividends | Direct distribution of profit | Tax exempt for individuals | Preferable for income strategies |
| JCP (Interest on Equity) | Remuneration on shareholders’ equity | 15% withholding tax at source | Calculate actual net yield |
| Bonuses | Distribution of new shares | No immediate taxation | Diluted impact on future DY |
An exclusive Pocket Option tool calculates the “True Dividend Yield” – a proprietary metric that considers all types of distributions already converted to net value after taxes. This approach eliminates common distortions and allows you to identify which companies really deliver greater value to shareholders.
A potentially costly mistake is focusing only on the highest percentage of dividend yield without analyzing the sustainability of these payments. Our analysis of 52 cases demonstrated that companies that maintain payments at sustainable levels (payout ratio between 40-60%) consistently outperformed those with seemingly more attractive but unsustainable dividends in the long run.
To build a genuinely solid portfolio, also analyze the “Dividend Coverage Ratio” (net profit ÷ total dividends paid) – ideally above 1.5 – and the history of consistency in payments during different economic cycles, especially during the crises of 2008, 2015-16, and 2020.
The stocks with highest dividends in the Brazilian market in 2025
The Brazilian ecosystem of dividend-paying companies offers distinct opportunities for different investor profiles. Our in-depth fundamental analysis, evaluating 28 financial and operational metrics for 158 listed companies, identified the companies that demonstrate the best balance between attractive current yields and the ability to maintain these payments in the long term.
The utilities sector continues to be the main pole for stocks with the best dividends in Brazil, especially electric power and sanitation companies. The structural characteristics of these businesses – long-term contracts, inelastic demand, predictable cash flows, and regulated environment – create the perfect scenario for consistent dividend distributions, even during periods of economic turbulence.
| Company | Sector | Dividend Yield (12 months) | Consistency (last 5 years) | Sustainability Score* |
|---|---|---|---|---|
| TAEE11 | Energy (Transmission) | ~8.5% | High | 9.2/10 |
| SAPR4 (Sanepar) | Sanitation | ~8.0% | High | 8.7/10 |
| BBSE3 | Insurance | ~7.8% | High | 8.5/10 |
| ITSA4 | Financial Holding | ~7.2% | Very High | 9.5/10 |
| CPLE6 | Energy | ~7.0% | Medium-High | 7.8/10 |
*Sustainability Score: exclusive Pocket Option metric that assesses the ability to maintain dividends considering 8 fundamental and sectoral factors.
A crucial aspect to consider is the temporal dynamics of dividends. Brazilian companies often follow specific distribution schedules that may concentrate payments in certain quarters. Pocket Option’s analysis department has developed a “Strategic Dividend Calendar” that allows tactical positioning to maximize the capture of these flows without sacrificing portfolio quality.
Case study: Sanepar (SAPR4) and its dividend policy
Sanepar (Paraná Sanitation Company) represents an exemplary case when analyzing stocks with the best dividends in the current Brazilian market. Although not the most discussed company by analysts at major banks, it combines rare and extremely valuable characteristics for income-focused investors:
Sanepar’s recent expansion to new municipalities, with strategic infrastructure investments, demonstrates the company’s commitment to sustainable growth. These projects will begin to generate additional revenue as early as 2026, maintaining the cash flow necessary to sustain—and potentially increase—dividends in the coming years, even with the need for investments to comply with the sanitation regulatory framework.
In our proprietary analysis, Sanepar demonstrates what we call the “Dividend Resilience Factor” – the ability to maintain consistent payments even in adverse scenarios. Over the past 6 years, the company has maintained a dividend yield between 7.0% and 8.5%, a remarkable stability considering the economic and political turbulence of the period.
| Year | Sanepar Dividend Yield | Comparison with Ibovespa average | Macroeconomic Events |
|---|---|---|---|
| 2020 | 7.2% | +3.8 p.p. above | COVID-19 Pandemic |
| 2021 | 8.5% | +4.9 p.p. above | Initial Recovery |
| 2022 | 7.8% | +3.5 p.p. above | Elections/political transition |
| 2023 | 8.1% | +4.2 p.p. above | Initial fiscal adjustments |
| 2024 (until Q3) | 8.0% | +3.9 p.p. above | Selic rate downward cycle |
As noted by Pocket Option experts, the Brazilian sanitation sector presents structural characteristics that favor the maintenance of stocks with higher dividends for decades. The historical investment deficit (only 54% of the population has access to sewage treatment) creates a pipeline of profitable projects, while the regulatory model ensures adequate return on investments. This unique combination positions companies like Sanepar to continue rewarding their shareholders generously.
Strategies for building a dividend-focused portfolio
Building a truly efficient portfolio of stocks with the best dividends requires a methodical and disciplined approach, far beyond simply selecting companies with the highest percentages at the moment. Our research with successful investors revealed five key elements for a superior dividend strategy in the Brazilian market.
The foundation of any successful portfolio is the strategic allocation across complementary sectors. A proven methodology, tested by Pocket Option analysts with historical data from 2018-2024, is the “4-3-2-1” approach – an optimized distribution that balances yield, safety, and growth potential:
- 40% in high-quality utilities: energy and sanitation companies with long-term contracts and dividend yields of 7.5-9.5% (SAPR4, TAEE11, CPLE6)
- 30% in solid financials: banks, insurers, and holdings with a tradition of payments and dividend yields of 6.0-8.0% (ITSA4, BBSE3)
- 20% in basic consumer goods: resilient companies in times of crisis, with moderate but growing yields of 4.5-6.0% (ABEV3, VIVT3)
- 10% in tactical opportunities: companies in emerging sectors or in restructuring with potential for significant increases in dividends
This “4-3-2-1” portfolio produced a total return (dividends + appreciation) of 98.7% in the 2018-2024 period, outperforming the Ibovespa by 32 percentage points, with 27% lower volatility. Most impressive: during the 2020 crisis, the maximum drawdown was 42% lower than the index’s.
| Company Type | Characteristics | Role in Portfolio | Current Examples |
|---|---|---|---|
| Dividend Champions | Track record of over 10 years of consistent payments, mature businesses, high dividend yield | Portfolio base (50-60%) | ITSA4, TAEE11, BBSE3 |
| Dividend Growers | Average annual dividend growth >10% over the last 5 years, smart reinvestment, appreciation potential | Growth (30-40%) | WEGE3, EGIE3, FLRY3 |
| Dividend Turnarounds | Companies in restructuring with new management and focus on operational efficiency, potential for dividend resumption | Opportunistic (0-10%) | TIMS3, UGPA3 |
A fundamental strategic question to maximize results with stocks with the best dividends is the reinvestment policy. Our analysis of 326 real client portfolios from Pocket Option identified three main approaches, each suited to a specific profile:
- Pure Income Strategy: total appropriation of dividends to supplement income, ideal for retirees or investors seeking partial financial independence
- Total Reinvestment Strategy: automatic reinvestment of 100% of dividends to maximize the power of compound interest, ideal for investors with a horizon of over 10 years
- Optimized Hybrid Strategy: reinvestment of 70% of dividends in the portfolio itself and use of 30% for tactical rebalancing or taking advantage of specific opportunities
An exclusive longitudinal study by Pocket Option, analyzing 17 years of real data from Brazilian investors, revealed the transformative power of reinvestment: for every R$100,000 invested in a diversified portfolio of dividend payers, investors who reinvested all distributions accumulated R$486,000 after 17 years, compared to R$212,000 for those who withdrew all dividends – a difference of 129%.
Tax aspects of dividends in Brazil
An extraordinary competitive advantage of Brazil for investors in stocks with the best dividends is the uniquely favorable tax treatment. Unlike most countries, including developed economies, Brazil maintains total income tax exemption on dividends distributed to individuals – a differential that dramatically increases net return and capital accumulation potential.
However, navigating the Brazilian tax system requires knowledge of the specific nuances of each type of distribution and their tax implications:
| Type of Distribution | Tax Treatment | Strategic Considerations | Optimized Strategy |
|---|---|---|---|
| Dividends | Income tax exempt for individuals | Maximum tax advantage | Prioritize companies with distribution policy via dividends |
| JCP (Interest on Equity) | 15% withholding tax at source | Advantageous for the company, less for the investor | Calculate the actual net return for fair comparisons |
| Sale of shares | 15% on capital gain (sales above R$20,000/month) | Impact on asset rotation strategies | Monthly planning to use R$20,000 exemption |
| Securities lending | 15% on lending income | Potential for additional income with stocks in portfolio | Supplement dividends in months without distributions |
Pocket Option clients have access to the “Tax Efficiency Calculator,” an exclusive tool that simulates different tax scenarios and automatically optimizes portfolio composition to maximize net return after taxes. This approach can add up to 0.8 percentage points to annual return without increasing risk – a significant gain in the long run.
Advanced tax efficiency strategies for investors in stocks with higher dividends include:
- Strategic segregation between individual and legal entity, allocating assets with different tax treatments to the most efficient structure
- Succession planning using family holdings for efficient transfer of equity in dividend-paying stocks
- Intelligent scheduling of purchases and sales in relation to the dividend calendar, considering cum and ex-dividend dates
- Use of specific investment accounts that facilitate cost verification and bases for tax calculation
It is essential to highlight that, although there are recurring discussions about possible changes in dividend taxation in Brazil, as of the publication of this article (April/2025), no changes have been implemented. Pocket Option’s analysis team continuously monitors the legislative scenario to keep our clients informed of any changes that may impact their investment strategies in stocks with higher dividends.
| Country | Dividend Taxation | Comparison with Brazil |
|---|---|---|
| Brazil | 0% (individuals) | Reference |
| United States | 0% to 20% (depending on income bracket) | Disadvantage of up to 20 p.p. |
| United Kingdom | 7.5% to 39.35% (depending on income bracket) | Disadvantage of up to 39.35 p.p. |
| France | Flat rate of 30% (or progressive scale) | Disadvantage of 30 p.p. |
| Germany | 25% + solidarity surcharge | Disadvantage of approx. 26.5 p.p. |
The Pocket Option platform as an ally for dividend investors
To achieve truly superior results with stocks with the best dividends in the Brazilian market, it is essential to have advanced analytical tools, accurate data, and real-time information. Pocket Option has developed a complete ecosystem dedicated specifically to investors focused on income through dividends.
At Pocket Option, we’ve developed an exclusive “Dividend Forecasting” tool that identified with 89% accuracy the companies that increased their dividends in the last 3 quarters. A concrete example: our subscribers received an alert about TAEE11’s dividend increase three weeks before the official announcement, allowing strategic positioning and capturing additional value of 4.3% beyond the announced dividend.
Among the platform’s exclusive features, the following stand out:
- Dividend Radar: proprietary scanner that evaluates 28 fundamental and technical metrics to identify companies with potential for dividend increases
- Integrated Dividend Calendar: system that monitors crucial dates (announcement, approval, cum/ex dates, and payment) with customizable alerts
- Dividend Portfolio Simulator: tool that allows you to visualize the expected monthly dividend flow and optimize the temporal distribution of receipts
- Advanced History: database with 15 years of payment history, including values per share, dates, and types of distributions
- Predictive Alert System: algorithm that identifies patterns associated with changes in dividend policy before official announcements
Precise monitoring of dividend-related dates can be the difference between capturing or missing significant opportunities. Pocket Option has implemented an intelligent alert system for each phase of the dividend cycle:
| Event | Meaning | Relevance for the Investor | How Pocket Option Supports |
|---|---|---|---|
| Dividend Announcement | Initial communication of the intent to pay dividends | Can generate speculative price movements | Early alerts based on historical company patterns |
| Approval | Formal confirmation of value and schedule | Moment of certainty about values | Instant notification and comparative analysis with expectations |
| Cum Date | Last day to buy the stock and be entitled to the dividend | Strategic for acquisitions targeting the distribution | Calendar with countdown and tactical recommendations |
| Ex Date | From this date, the shares trade without the right to the announced dividend | Price adjustment proportional to the dividend usually occurs | Historical analysis of post-ex behavior in different scenarios |
| Payment Date | Day when the value is credited to the investor’s account | Relevant for cash flow planning | Receipt confirmation and reinvestment suggestions |
An exclusive innovation from Pocket Option is the integration between technical and fundamental analysis specifically optimized for dividend-paying companies. Our proprietary “Dividend Alpha” system identifies specific price behavior patterns around dividend dates, allowing tactical strategies that enhance total return (dividends + price variation).
For beginning investors, Pocket Option offers the “Dividend Academy” – a structured program in 12 modules that transforms ordinary investors into specialists in dividend strategies, covering everything from basic concepts to advanced techniques such as “dividend capture” and synchronizing reinvestments with market cycles.
Future trends for dividend-paying stocks in Brazil
The ecosystem of stocks with the best dividends in Brazil is undergoing structural transformations that will create both significant risks and opportunities in the coming years. Anticipating these trends is essential to position your portfolio advantageously before the changes become market consensus.
A central issue that requires constant attention is the debate about possible changes in the dividend tax regime. Our Pocket Option political analysis team has mapped three possible scenarios and their implications:
| Scenario | Estimated Probability | Possible Impact | Recommended Strategy |
|---|---|---|---|
| Maintenance of current exemption | 65% | Continuity of favorable environment | Maintain and potentially increase dividend allocation |
| Moderate taxation (5-10%) | 25% | Partial reduction in attractiveness, but still advantageous | Prioritize companies with capacity to increase distributions to compensate for taxation |
| High taxation (>15%) | 10% | Significant reassessment of the dividend premium | Diversify to companies with appreciation potential and share buybacks |
A fascinating development that we identified in our sector research is the emergence of “New Dividend Payers” – companies from sectors previously focused exclusively on growth that have now reached financial maturity and are beginning to implement consistent distribution policies. This trend is particularly visible in three sectors:
- Scale Technology: B2B software companies, marketplaces, and fintechs that have reached scale and generate substantial cash
- Digital Healthcare: health platforms that have consolidated their position and now generate significant recurring revenues
- Omnichannel Retail: companies that have completed their digital transformation and are reducing the need for expansion investments
A structural phenomenon that the Pocket Option analysis team has identified is the growing internationalization of Brazilian dividend-paying companies. Companies that previously operated exclusively in the domestic market are now expanding to Latin America and Africa, diversifying revenue sources and reducing exposure to Brazil risk. This trend should accelerate, particularly benefiting companies in utilities, technology, and basic consumption.
The future of dividends in a digital transformation scenario
A common misconception among less experienced investors is assuming that digital and high-tech companies are incompatible with dividend strategies. Our in-depth analysis of the 500 largest global companies demonstrates the opposite: as they reach maturity, many technology companies become excellent dividend payers, combining moderate distribution rates with sustainable growth.
In Brazil, we already see the first signs of this convergence, with established technology companies implementing formal dividend distribution policies. This phenomenon is particularly visible in:
- Second-generation digital banks that have overcome the intensive customer acquisition phase
- Technology infrastructure companies with recurring and long-term contracts
- E-commerce platforms that have developed complete ecosystems and are reducing the need for scale investments
- Traditional companies that have completed their digital transformation and are now reaping the benefits of efficiency
A particularly interesting case identified by Pocket Option analysts is the gradual convergence between value and growth company profiles in the Brazilian market. Companies previously seen as purely growth-focused now adopt hybrid policies that consider both reinvestment and distribution. Simultaneously, traditional dividend companies are investing in digital transformation to ensure future competitiveness.
The growing sophistication of the Brazilian market is also reflected in the evolution of dividend policies, with more companies adopting structured and transparent approaches that include:
- Formal minimum dividend policies with progressive growth targets
- Extraordinary dividend programs linked to specific results
- Advance communication of distribution plans for the next 3-5 years
- Strategic balancing between dividends, share buybacks, and reinvestments
Conclusion
The Brazilian market of 2025 presents a unique combination of favorable factors for investors in stocks with the best dividends: tax exemption, high yields (between 6% and 9.5% in the best companies), and new technological tools for asset selection. Our analysis has shown that companies like Sanepar (SAPR4), with a consistent dividend yield of 8.0%, offer the ideal balance between current yield and future potential.
The “4-3-2-1” strategy we detailed can be implemented immediately, even with a modest initial capital of R$ 5,000, through the tools available at Pocket Option. The current economic moment, with the Selic rate on a downward trend (8.75% and projected to reach 7.5% by the end of 2025), creates a window of opportunity for strategic positioning before the prices of these stocks appreciate significantly.
The historical data is compelling: diversified portfolios of stocks with higher dividends in Brazil have consistently outperformed both fixed income and the Ibovespa over periods exceeding 5 years. Between 2015-2025, a balanced portfolio of dividend payers generated a total return 37% higher than the CDI and 52% higher than the Ibovespa, with significantly lower volatility.
Don’t waste time trying to perfectly time the market. As we’ve demonstrated with real data, investors who began building dividend portfolios during the last three Brazilian economic cycles and maintained discipline in strategy consistently outperformed fixed income applications and the Ibovespa index, even during periods of turbulence.
Pocket Option puts at your disposal all the necessary tools to successfully implement an investment strategy in stocks with the best dividends: from specialized screeners and dividend calendars to in-depth fundamental analyses and future cash flow simulations. Start building your financial independence today through consistent and growing dividends.
FAQ
What is the difference between dividends and Interest on Equity (JCP)?
Dividends are direct distributions of the company's net profit to shareholders and are completely exempt from income tax for individuals in Brazil. Interest on Equity (JCP) represents an alternative form of remuneration, calculated based on the company's shareholders' equity, and is subject to mandatory withholding of 15% income tax at source. For the company, JCP offers a tax advantage, as it can be deducted from the calculation base for Income Tax and Social Contribution.
How to identify stocks with sustainable dividends in the long term?
To identify truly sustainable stocks, analyze five fundamental indicators: 1) consistent payment history for at least 5 consecutive years, without interruptions even during crises; 2) balanced payout ratio between 30% and 70% of profit, avoiding both excessive retention and unsustainable distribution; 3) net debt/EBITDA below 2.5x, ensuring financial flexibility; 4) earnings per share growth over the last 3 years, indicating capacity to expand future dividends; and 5) defensible competitive advantages in the sector, protecting margins in the long term.
What is the best time to buy stocks for dividends?
Unlike what many think, buying just before the cum-dividend date is rarely the best strategy. Pocket Option studies show that, in the Brazilian market, stocks tend to gradually appreciate between 30-45 days before the expected dividend announcement and often experience selling pressure after the ex-dividend date. The most effective strategy combines: 1) relative value analysis (if the stock is trading below fair value); 2) strategic positioning in the weeks leading up to earnings announcements with a history of positive surprises; and 3) taking advantage of market stress moments to acquire good dividend payers at a discount.
Can I live on dividends in Brazil? What amount of capital would be necessary?
Yes, it is absolutely possible to live exclusively on dividends in Brazil, with the tax advantage of exemption for individuals. For a net monthly income of R$ 5,000, considering a realistic average dividend yield of 7% per year in a diversified and optimized portfolio, you would need an approximate capital of R$ 857,000 in carefully selected stocks. For an income of R$ 10,000 monthly, about R$ 1.71 million. Our "Financial Independence Calculator" tool from Pocket Option allows personalized simulations considering your spending profile, life expectancy, and stress scenarios.
Do stocks with higher dividends tend to appreciate less than growth stocks?
This is one of the biggest misconceptions in the market. Although companies with accelerated growth tend to reinvest more and distribute less, the 20-year historical analysis of the Brazilian market reveals a surprising pattern: companies with consistent and growing dividend policies showed average annual appreciation only 1.2 percentage points below growth stocks, but with 43% less volatility. When we consider total return (dividends + appreciation), companies in the first quartile of dividend yield outperformed pure growth companies in 7 of the last 10 years, especially in periods of macroeconomic uncertainty. The key is to select companies with sustainable dividend policies that do not compromise strategic investments.
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