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Bank Bradesco SA's Dividend Analysis

An In-depth Look at Upcoming Dividends and Historical Performance

Bank Bradesco SA (NYSE:BBD) recently announced a dividend of $0 per share, payable on 2024-07-09, with the ex-dividend date set for 2024-06-05. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Bank Bradesco SA's dividend performance and assess its sustainability.

What Does Bank Bradesco SA Do?


Banco Bradesco is Brazil's second-largest private bank, holding about 15% of deposits, and is the largest insurance provider in Brazil, with roughly 20%-25% market share. The bank is majority controlled by the Bradesco foundationa private nonprofit institution focused on education. Banking provides roughly 70% of profits, while the insurance segment contributes the remaining 30%. The bank is also a major asset manager with high-single-digit market share. In 2016, Bradesco acquired the Brazilian operations of HSBC.

Bank Bradesco SA's Dividend Analysis
Bank Bradesco SA's Dividend Analysis

A Glimpse at Bank Bradesco SA's Dividend History

Bank Bradesco SA has maintained a consistent dividend payment record since 2001. Dividends are currently distributed on a monthly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.

Bank Bradesco SA's Dividend Analysis
Bank Bradesco SA's Dividend Analysis

Breaking Down Bank Bradesco SA's Dividend Yield and Growth

As of today, Bank Bradesco SA currently has a 12-month trailing dividend yield of 3.39% and a 12-month forward dividend yield of 1.81%. This suggests an expectation of decreased dividend payments over the next 12 months. Over the past three years, Bank Bradesco SA's annual dividend growth rate was 5.70%. Extended to a five-year horizon, this rate increased to 34.20% per year. And over the past decade, Bank Bradesco SA's annual dividends per share growth rate stands at an impressive 13.40%.

Based on Bank Bradesco SA's dividend yield and five-year growth rate, the 5-year yield on cost of Bank Bradesco SA stock as of today is approximately 14.76%.

Bank Bradesco SA's Dividend Analysis
Bank Bradesco SA's Dividend Analysis

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 2024-03-31, Bank Bradesco SA's dividend payout ratio is 0.55. Bank Bradesco SA's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Bank Bradesco SA's profitability 5 out of 10 as of 2024-03-31, suggesting fair profitability. The company has reported positive net income for each of 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. Bank Bradesco SA'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 Bank Bradesco SA's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Bank Bradesco SA's revenue has increased by approximately 6.90% per year on average, a rate that underperforms than approximately 50.67% 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, Bank Bradesco SA's earnings increased by approximately -4.10% per year on average, a rate that underperforms than approximately 83.55% of global competitors. Lastly, the company's 5-year EBITDA growth rate of -2.00%, which underperforms than approximately 84.31% of global competitors.


Considering Bank Bradesco SA's dividend payments, growth rate, payout ratio, profitability, and growth metrics, the company presents a mixed outlook. While its dividend history is robust, the challenges in earnings growth and revenue performance could influence future dividend sustainability. Investors should weigh these factors carefully. For those interested in exploring further, GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.

This article first appeared on GuruFocus.