Banco Bradesco SA : BBD-US: Dividend Analysis : December 05th, 2017 (record date) : By the numbers : December 6, 2017

Our analysis is based on comparing Banco Bradesco SA with the following peers – Itau Unibanco Holding S.A. Sponsored ADR Pfd, Canadian Imperial Bank of Commerce, Royal Bank of Canada, Banco Bilbao Vizcaya Argentaria, S.A. Sponsored ADR, HSBC Holdings plc Sponsored ADR, Mitsubishi UFJ Financial Group, Inc. Sponsored ADR and Banco de Chile Sponsored ADR (ITUB-US, CM-US, RY-US, BBVA-US, HSBC-US, MTU-US and BCH-US).

Banco Bradesco SA’s dividend yield is 1.73 percent and its dividend payout is 20.97 percent. This compares to a peer average dividend yield of 3.28 percent and a payout level of 44.14 percent. This relatively lagging dividend performance could spur some dividend action going forward – as long as the company’s relatively strong dividend quality score of 83 out of a possible score of 100 looks sustainable.

Dividend Yield
Dividend Quality Score

Dividend Quality Overview

  • Over the last twelve months (prior to September 30, 2017), BBD-US paid a high quality dividend, which represents a yield of 1.50% at the current price.
  • Dividend quality trend has not been consistent over the last five years. Dividends were paid during each of these years — of these 2 were high quality, 2 were medium quality and 1 was low quality.
  • The ending cash balance, with a dividend coverage of 16.09x, provides a substantial cushion in case of a significant reduction of cash flows in the future.
Dividend Quality Score Vs Dividend Yield

Quadrant label definitions. Hover to know more

High Score;High Yield, High Score;Low Yield, Low Score;Low Yield, Low Score;High Yield

Dividend Coverage

Over the last twelve months (prior to September 30, 2017), BBD-US paid a high quality dividend.

The source of the company’s cash to support the dividend paid over the last twelve months is operating cash flow (coverage of 11.73x), investing cash flow (coverage of -3.78x), issuance cash flow (coverage of -5.11x) and twelve-month prior cash (coverage of 14.12x), for a total dividend coverage of 17.09x.

BBD-US’s issuance cash flow includes outflows from net debt repayment (coverage of -4.10x) and net share buybacks (coverage of -2.17E-5x). Thus, the total coverage including share buybacks is 17.09x, which reflects our assumption that the cash paid for share buybacks is discretionary and could instead be used to pay dividends.

Dividend Coverage by Cash Flow (TTM)

These coverage ratio factors imply that the firm’s dividends are wholly paid from operating and investing cash flows net of any debt repayments, which suggests a high dividend quality.

Dividend History

Item 2012-12-31 2013-12-31 2014-12-31 2015-12-31 2016-12-31 Latest
Dividend Yield (%) 5.79 7.4 5.95 12.09 6.76 1.73
Dividend Payout (%) 28.29 9.7 17.15 15.14 6.82 20.97

A complete list of metrics and analysis is available on the company page.

Company Profile

Banco Bradesco SA operates as an international bank. It offers banking and financial products and services. The company operates through two segments: Banking, and Insurance, Pension & Capitalization Bonds. The Banking segment includes individuals and small, midsized, and large companies in Brazil. The Insurance, Pension & Capitalization Bonds segment offers products which include health, life, personal accident, automobile, and other assets. Banco Bradesco was founded by Amador Aguiar on March 10, 1943 and is headquartered in Osasco, Brazil.


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