Dividend portfolio: see the most recommended stocks to invest in February

The Ibovespa gains of 3.6% in the first month of the year maintain market analysts’ belief that the Brazilian stock market is heavily discounted and has growth potential, mainly due to the entry of foreign capital into the country.

For the month of February, the CNN compiled eight of the most recommended stocks by some of the main banks and brokerages in Brazil, which must surf the wave of the moment to yield good dividends .

The most recommended asset was Itaú. The bank’s action had five recommendations, followed by Engie, Vale and CPFL Energia, which also remain among the main bets, as in January, with four nominations each.

See the full portfolio below:

For the composition of the most recommended stock portfolio for dividends in February, the CNN with the collaboration of: XP, BTG Pactual, Santander, Banco do Brasil, Terra, Guide, Warren, and Ativa Investimentos.

Time

According to market analysts, better prospects for the global economy, such as the reopening of China, may continue to provide positive impacts for emerging countries, especially exporters of commodities like Brazil.

On the other hand, the market is still apprehensive due to President Luiz Inácio Lula da Silva’s speeches about the country’s fiscal situation. This was mitigated by Minister Fernando Haddad’s statements that he intends to deliver a credible fiscal anchor in the first half of the year, but the topic continues to be closely watched by the market.

In the external scenario, the increase in interest rates in the US and the deceleration of the US economy make the dollar lose strength against the real, and investors turn to Brazil. On the other hand, maintaining the Selic at a high level can impact companies’ results and frustrate expectations about operations and revenues.

Highlights

Itaú Unibanco

Action: ITUB4

Comment: XP

The combination of its industry-leading profitability history (due to its operational efficiency and long lending history) and strong exposure to consumer credit lines for individuals should pave the way for Itaú to lead the industry on the credit front. next years. We see the bank as capable of continuing to grow its loan portfolio in the short term, keeping its delinquency at healthy levels, mainly supported by its solid track record in previous economic cycles.

Engie

Action: EGIE3

Comment: Terra Investimentos

Engie is the largest private electricity producer in Brazil, with its own installed capacity of 10,791MW in 72 plants, which represents around 6% of the country’s capacity. With the acquisition of TAG, the company now also owns the most extensive natural gas transport network in the country, with 4,500 km, which crosses 10 states and 191 municipalities.

We have a positive outlook for 2023, bearing in mind the advancement of transmission projects and the new energy sales contracts signed by the company, which totaled 142 average MW between 2022 and 2027. Our target price in 12 months is R$47 for the share, while the dividend yield is 7.60% and the 2021 payout, 84.35%.

OK

Action: VOUCH3

Comment: BTG Pactual

The company remains one of our preferred names for exposure to the reopening of the Chinese economy. As we move into 2023, we expect economic activity to gradually recover as the government eases restrictions and helps moderate the housing market correction. Its operating momentum should continue to recover as production and costs (both for its iron ore and base metals divisions) should improve in the coming quarters.

We welcome the addition of a reference shareholder (Cosan) to Vale’s board and see a potential monetization of the base metals division as a potential value generator for long-term investors. In our opinion, management remains highly disciplined in its capital allocation strategy (low growth capex), and we expect most of the mid-term strategic agenda to be focused on shareholders’ cash returns – we project a yield of 10- 11% to 2023, including share buybacks. We reiterate our buy recommendation.

CPFL Energia

Action: CPFE3

Comment: Santander

We believe that CPFL is a good option for 2023, as its valuation remains attractive (implied real IRR of 12.3%) and the company’s cash flow remains stable, with limited risk, in our view. We base our positive view of CPFL on: defensive positioning; stable cash generation; low exposure to water deficit (GSF); and portfolio diversification.

We see the company well positioned in all segments. In the distribution segment, CPFL is present in regions with low default rates and losses. In generation, the company has less exposure to long-term energy prices and GSF. In transmission, in addition to its inflation protection characteristics and stable and predictable cash flow, we believe the company could increase revenues through new capex.

We also like the expected strong dividend yield (15.4% over the next three years) and believe that CPFL could potentially pay extraordinary dividends if the government decides to tax the dividends.