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Why Vale (VALE3) is the best stock to have in May, according to 20 analysts – Money Times

dividends
New leadership: Vale beats Vivo and is analysts’ favorite stock in terms of dividends for May (Image: Reuters/Washington Alves)

After nine months in the lead, in May, the Alive (VIVT3) lost the top spot on the best-paying stock podium in dividends for a role that has already been vying for space in the first place for a few months, OK (VALE3).

The mining company received eleven nominations in the recommended walletsaccording to a survey carried out by the Money Times with 20 brokers.

Despite not having won the podium contest, the telecommunications network shares second place with Engie Brazil (ENGIE3), with seven recommendations each.

closing the top 3, Alupar (ALUP11), Bank of Brazil (BAAS3) and Itaú Unibanco (ITUB4) are in third place, with six nominations each.

Dividends: New leadership

In May, the OK emerges as a new darling of analysts in relation to dividends. the broker Guide Investments highlights that the company, in addition to being one of the largest mining companies in the world, has a diversification of iron ore in Brazil in three systems (North, Southeast and South), which have their own transport and remittance capacity.

To BTG Pactualthe mining company’s story could evolve well in 2022.

“Management remains highly disciplined in capital allocation (business model asset light), which still implies that most of the agenda should involve cash returns to shareholders – the latest repurchase announced of 500M shares demonstrates this”, they state.

In addition, analysts expect the production problems of iron ore in Carajás dissipate, helping production and the dilution of fixed costs, and improving the results of its undervalued base metals unit in 2022.

Ultimately, the company must continue to make tangible progress ahead ESG“removing the excessive discount currently assigned to the price of its shares“, highlight BTG.

Analysts reiterate the purchase of shares in OKwhich must have a free cash flow of 15%.

See the most recommended stocks for May in terms of dividends:

See the other nominations made this month:

Companies indications
EDP ​​Brasil, Bradesco 4 each
Brasil Agro, B3, Copel, Energisa, Itaúsa, Vibra Energia 3 each
ambevBradespar, Cemig, Kepler Weber, klabin, Minerva, Cyrela 2 each
ABC Brazil, AES Brazil, BTG Pactual, Coke, cup, Cosan, CPFL Energia, CSN, Gerdau, Grendene, Hypera, JBS, moved, odontoprev, Petrobras, safe harbor, Santander, unipar, Saint Martin, Aura Minerals, Wilson Sons 1 each

survey

The lifting of Money Times took into account information on stock portfolios disclosed by 20 institutions. For April, 46 actions were indicated, totaling 124 recommendations.

Participated in the survey Ágora Investimentos, Ativa Investimentos, BB Investimentos, BTG Pactual, Nu invest, Eleven, Elite, Empiricus, Genial Investimentos, Guide Investimentos, Itaú BBA, Mirae Asset, MyCap, Nova Futura, Órama PagBank, Planner, Banco Safra, Santander, Terra Investimentos.

Disclaimer

The Money Times publishes articles of a journalistic nature, which aim at the democratization of information. Our publications must be understood as announcing and disseminating bulletins, and not as an investment recommendation.

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