Stocks that pay dividends: who doesn't like them?

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This year, for the first time in history,  the dividend yield of Ibovespa companies exceeded the Brazilian basic interest rate, the Selic . Despite the reduction in company profit estimates in 2020 and, consequently, the payment of dividends, interest rates are at historic lows. Therefore, this comparison of dividend yield with interest remains positive, which shows the attractiveness of both the Stock Exchange and good dividend payers. div yield ibovespa vs selic In addition to encouraging the allocation of investments on the stock market in search of greater profitability, the lower interest rate also has direct effects for companies, such as reducing the  cost of their debts and encouraging investment , important in sales and services that require more capital to operate. It is no surprise that the number of individuals investing in shares broke a record at the end of September – there are now 3.1 million people, compared to 1.7 million at the end of 2019 according to B3. With dividend yields above the interest rate,  investors have the ability to increase their returns beyond the gains from the stock's performance.
  
It is important to note that investors are keeping an eye on 2021 earnings, in a more normalized earnings scenario for companies. In this challenging short-term moment, some companies may reduce cell phone number list distribution to retain cash or have their dividends reduced for regulatory reasons, as is the case with banks. Even with the possible increase in the Selic rate in 2021, in a world of low interest rates (which is also the reality in Brazil),  the stock exchange's average dividend yield above interest rates presents many opportunities for investors , especially via good dividend payers . With that in mind, every 5th business day of the month we present the  Top 20 dividend payers  free of charge to anyone who has an account with Rico! We included in the list only names with coverage of 5 or more analysis houses. The companies indicated by (stars) are also part of our selection of Stock Exchange darlings, the Bolsa Rico Stars Selection.



Discover stellar shares by clicking  here. These are the first ten names on the October list, from highest to lowest dividend, according to Bloomberg estimates for 2021: dividend payer table If you already have a Rico account , you can access the complete list and more information about the October Top 20 in the Analysis > Recommended Portfolios menu. Spoiler: we have more “stars” on the list. Summary of the day:  Here comes Trump, Trump here, Trump there (by Lucas Collazo) The stock market indices are in a cautious mood: in the USA, futures rise by up to 0.6%. In Europe, the Stoxx 600 shows a slight drop of 0.2%. Yesterday, after a tweet from US President Donald Trump, the markets retreated. The message stated that  negotiations on a fiscal stimulus package would be suspended until his electoral victory  and  cost the S&P 500 (the main US stock index) 80 points, closing the day down 1.4%. And can you imagine: during electoral races, this statement was obviously harshly criticized by the Democratic party (Joe Biden's party, Trump's competitor in the elections). But later, the same Trump provoked Congress into passing a series of coronavirus relief measures, including $1,200 stimulus checks for the unemployed.