The year 2023 begins with a layer of caution on the part of the financial market as a result of the economic agenda of the new government, according to analysts, who also highlight the pressured interest curve to contain the advance of inflation, in addition to an external scenario with challenges, such as the reopening of the Chinese economy.
As in December 2022, Engie’s share (EGIE3) was the most recommended by analysts for those who want a return on the profit of companies listed on the stock exchange. However, electric shared the lead in the first month of 2023 with Vale (VALE3), with five recommendations each.
For the composition of the most recommended stock portfolio for dividends in January, the CNN compiled the suggestions of eight of the main banks and brokerages in the country. They are: Inter, XP, BTG Pactual, Terra, Guide, Warren, Órama and Ativa Investimentos. See the full dividend portfolio for January:
Highlights
Engie
Action: EGIE3
Comment: XP
Engie performed slightly below the Ibovespa in December. We haven’t seen any relevant news that could impact the stock price. We continue to believe that Engie’s dividend distribution should remain at the level of 100% of earnings in 2023, given the company’s comfortable cash position. We estimate a dividend yield average of more than 10% in 2023. We maintain our Neutral recommendation on Engie, with a target price of BRL 49/share.
In addition to the power generation segment, Engie has assets in the gas transmission and transport sectors, adding resilience and diversification to the company’s portfolio.
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Under the terms of Engie’s bylaws, it is mandatory to distribute dividends to shareholders that are not less than 30% of the company’s net income, in accordance with the terms of corporate law. However, the company goes further, having adopted a minimum payment policy of 55% of adjusted net income.
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.
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, and we expect the bulk of the medium-term strategic agenda to be focused on shareholder cash returns – we project a yield of 10-11% for 2023, including share repurchases.
Itaú Unibanco
Action: ITUB4
Comment: Guide
In our view, Itaú’s significant improvement, in several segments, from credit to insurance, was able to partially overcome the subtle increase in its delinquency and its level of write-offs.
Despite this, we believe that the bank delivered an improvement in its credit mix, even with more profitable segments in the portfolio, which helped to raise the average rate of return. In short, we believe that Itaú delivered good numbers, but with a subtle increase in delinquency, overlapped by its non-core business lines, such as asset management and brokerage.
Source: CNN Brasil
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