TUDO QUE VOCÊ PRECISA SABER SOBRE DIVIDENDOS (parte 1) - Cortes da Bastter.com

Summary

This video script provides a comprehensive breakdown of dividends in the Brazilian stock market, addressing common misconceptions and clarifying key concepts. It explains that while many believe dividends must be 25% of a company’s profits, this is not mandated by law. The script also debunks myths about preferred (PN) and ordinary (ON) shares, tax exemptions on dividends, and the confusion surrounding dividend yield. Key terms like payout ratio and the impact of stock price adjustments post-dividend are explained. Ultimately, the video aims to help investors understand the reality of dividend payouts and avoid misleading information.

Takeaways

• 😀 **Dividends Explained**: Dividends are a portion of a company's profit distributed to shareholders. Companies can either reinvest profits or pay them out as dividends.
• 😀 **Myth of 25% Dividend Distribution**: While many believe companies must pay 25% of profits as dividends, this is not a law. It’s a tradition rooted in older regulations.
• 😀 **Preferred Shares (PN) vs. Common Shares (ON)**: PN shareholders are not true owners and don’t control the company. ON shareholders hold control, with rights like Tag Along in case of a takeover.
• 😀 **Dividends Aren’t Tax-Free**: While dividends are often advertised as tax-free, they are distributed from after-tax profits, meaning companies already paid taxes on them.
• 😀 **Interest on Capital**: Interest on capital is a more tax-efficient way for companies to distribute profits, as it’s taxed at 15% before being distributed, unlike dividends.
• 😀 **Ex-Dividend Date Adjustments**: After a dividend announcement, stock prices adjust to reflect the payout. For instance, if the dividend is R$1, the stock price drops by R$1 on the ex-dividend date.
• 😀 **Dividend Yield vs. Payout Ratio**: Dividend yield, influenced by stock price changes, is not a true reflection of a company's dividend policy. The payout ratio, however, shows the proportion of profits paid as dividends.
• 😀 **Bovespa's Rules on Dividends**: Bovespa has clear regulations on how dividend payments affect stock prices, where stocks are marked down by the amount of the dividend after the ex-dividend date.
• 😀 **PN Shares Without Tag Along Are Risky**: If preferred shares (PN) do not include Tag Along rights, shareholders lack guarantees in case of a change of control, leading to potential losses as seen in past examples.
• 😀 **Be Critical of Online Financial Advice**: The script warns against blindly following financial advice from influencers or Youtubers who may spread misleading or incomplete information.
• 😀 **Understanding Basic Financial Rules is Key**: The speaker emphasizes that understanding the basics of dividend distribution, stock prices, and financial regulations is essential for investors to avoid being misled.

Q & A

What are dividends and how are they paid to shareholders?

Dividends are a portion of a company's profit distributed to its shareholders. The company can choose to reinvest profits, pay off debts, or distribute a part of it to shareholders. The payment is based on the number and type of shares a shareholder holds.

Is it true that companies are required to pay 25% of their profits as dividends in Brazil?

No, it's not a law. While many companies in Brazil do pay around 25% of their profits as dividends due to tradition, it's not mandatory. The law that required companies to pay 25% of profits as dividends was abolished after 1976, and companies can now decide this percentage in shareholder assemblies.

What is the difference between 'ON' (common shares) and 'PN' (preferred shares) regarding dividends?

ON shares are held by those who have control over the company, whereas PN shares are typically for investors who provide financing but do not have control. PN shares may receive preferential treatment in dividend distribution, but this is not the same as being a 'partner' in the company.

Why is there confusion around the 25% dividend payout in Brazil?

The confusion arises because, historically, Brazilian companies followed a practice of paying around 25% of profits as dividends. However, this practice was based on tradition rather than legal obligation. As a result, many investors mistakenly believe it's a legal requirement.

What does the 'Dividend Yield' metric really represent, and why is it misleading?

The Dividend Yield (Dividend Wi) represents the ratio of dividends paid in a given period (usually one year) to the share price. However, this metric can be misleading because it is influenced by changes in the share price, not the actual amount of dividends paid. A falling share price will increase Dividend Yield, even though the actual dividend payout remains the same.

What is the correct measure to assess a company's dividend distribution?

The correct metric to evaluate dividend distribution is the 'payout ratio,' which shows the percentage of a company's profits that are distributed as dividends. This metric provides a clearer picture of how much of a company’s profit is being shared with shareholders.

How does the ex-dividend date affect share prices?

The ex-dividend date is the cutoff point for shareholders to be eligible for the upcoming dividend payment. After this date, the share price is adjusted to reflect the dividend payout, as shareholders who purchase the stock after the ex-dividend date will not receive the dividend.

What is the role of the company’s board of directors in the dividend distribution process?

The board of directors is responsible for deciding how a company's profits will be distributed. They announce the dividend amount, set the ex-dividend date, and determine the payment date. The decision to distribute dividends or reinvest profits is made based on the company’s financial health and strategy.

Why should investors avoid buying PN shares without tag-along rights?

PN shares without tag-along rights are risky because they do not guarantee that the shareholder will receive the same treatment as the controlling shareholders in case of a change in control of the company. In such cases, the price of PN shares may drop significantly, and the investor may not receive fair compensation.

Is there any tax on dividends received by investors in Brazil?

While dividends themselves are not taxed when received by shareholders, the profits from which they are distributed are subject to taxation. Companies pay taxes on their profits before distributing dividends, including income tax, CSLL, and other levies, meaning the dividends are paid from already-taxed profits.