Best Monthly Dividend Stocks - Banco Bradesco and Banco Itau
Dividend Yield: 4.9% and 3.9%, respectively
And speaking of top dividend stocks with high capital gains potential, next on the list of are Brazilian banking groups Banco Bradesco (BBD) and Banco Itau (ITUB) — two monthly dividend stocks you must consider.
Sure, it’s a little bit of a stretch to call Bradesco and Itau true “monthly dividend stocks.” Both are indeed stocks that pay dividends monthly, but the monthly dividends are pretty modest (the last monthly dividends were each under 1 cent). Much larger dividends are paid semiannually, giving the banks respectable trailing 12-months yields of 4.9% for BBD stock and 3.9% for ITUB stock. Still, the fact that these are monthly dividend stocks instills discipline in management, and I respect the nod to shareholder friendliness.
It has not been a kind year for investors in Latin America and in Brazil in particular. Most stock averages in the region are down for the year. The Brazilian currency, the real, started 2013 grossly overpriced, and slowing in China has taken the wind out of Brazil’s sails.
But with 2013 now drawing to a close, the real is reasonably priced again, and much of the hot money has fled the region. If China picks up steam in 2014 — and I expect that it will — then I expect the Brazilian economy to come back to life.
And I expect investors to rediscover the region, along with these two monthly dividend stocks.