Updated on March 31st, 2025 by Felix Martinez
Most stocks that pay dividends do so quarterly, semi-annually, or annually. However, a small group of stocks pay their dividends monthly. Monthly dividend stocks naturally appeal to investors as they make 12 dividend payouts to shareholders each year.
Monthly dividend stocks are equally rare among international dividend stocks. Banco Bradesco S.A. (BBD) is a monthly dividend stock with a projected 2025 yield of ~10.2%.
You can download our full Excel list of 76 monthly dividend stocks (along with important metrics like dividend yields and payout ratios) by clicking on the link below:
Of course, investors should exercise caution when it comes to monthly dividend stocks. Before buying shares, investors should always evaluate a company based on its business model strength, competitive advantages, and growth potential.
This article will discuss Banco Bradesco in greater detail.
Business Overview
Banco Bradesco is a financial services company based in Brazil. It offers various banking products and financial services to individuals, corporations, and businesses in Brazil and internationally. The company’s two main segments are banking and insurance, including checking and savings accounts, demand deposits, time deposits, accident and property insurance products, and investment products. The company generates around $23 billion in annual revenue.
The 2020 COVID-19 pandemic was very difficult for Banco Bradesco, as the coronavirus pandemic negatively impacted the global economy. Fortunately, 2021 was a year of recovery for banks such as Banco Bradesco, which have benefited from the return to economic growth.
Source: Investor Presentation
On February 7th, 2025, Banco Bradesco reported its fourth-quarter results. In 4Q24, recurring net income was $1 billion (ROAE 12.7%), contributing to a 20% YoY profit increase to $3.4 billion. The company focused on growing high net interest income areas and increasing collateralized credit. The company adjusted its risk appetite and credit conditions to adapt to economic challenges while controlling costs and investing in transformation.
The company loan portfolio grew with a 13.3% YoY increase in individual loans and a 28% rise in MSME lending. Delinquencies fell by 0.2 p.p. QoQ and 1.1 p.p. YoY. Revenue grew 5.4% QoQ and 7.9% YoY, driven by financial NII, fees, commissions, and insurance. Insurance ROAE was 25.1%, with operating income up 9.6% QoQ.
For 2025, the company expects continued revenue growth, stable credit costs, and rising net interest income. Operating expenses may increase due to ongoing transformation investments. The company remains committed to digital banking and sustainability, having allocated $53 billion to socio-environmental projects by 2024.
We are forecasting an FY2025 EPS of $0.34, assuming higher net interest income due to interest rates. Still, we remain cautious due to the possibility of the Brazilian Real depreciating against the dollar.
We’ll now look at Banco Bradesco’s growth prospects in detail.
Growth Prospects
Banco Bradesco’s earnings-per-share growth has been improving gradually in constant currency but has shown as flat or reduced over the years when converted in USD, due to BRL/USD depreciation. Foreign exchange risk is a significant consideration for U.S. investors when buying international stocks.
That said, the company has been successful in generating organic growth. Continued loan growth should support future growth for BBD.
Source: Investor Presentation
Banco Bradesco possesses competitive advantages that should fuel its expected growth, primarily its size, industry position, and healthy capital structure. Liquidity coverage is also ample enough to ensure funds are available if needed. However, with Brazil’s economic struggles and the currency risk posed by the strong U.S. dollar, we expect flat EPS over the next five years for BBD.
Fortunately, despite the lack of earnings growth, we view the company’s dividend payout as secure, given the comfortable dividend payout ratio of ~50%.
Dividend Analysis
We are expecting FY2025 dividends of $0.17 per share. With a current share price of ~$2.26, the stock has a ~8% dividend yield.
Furthermore, BBD stock is even more appealing because of its monthly dividend. Dividend payments are made monthly, which is quite rare for an international company.
It is worth noting that the company’s dividend grew consecutively annually from 2012 to 2019, but again, FX changes have distorted that amount.
Regarding dividend safety, we expect the company to report a full-year EPS of $0.34. This means the company has a projected dividend payout ratio of ~50% for 2025, a healthy payout ratio that indicates the dividend is sustainable, barring a deep and severe economic downturn in Brazil.
While Banco Bradesco’s dividend is inconsistent and will continue to vary based on the company’s underlying results and FX changes, the current level should be considered relatively safe and well-covered by the company’s cash from operations.
Final Thoughts
Banco Bradesco struggled during the coronavirus pandemic, but it recovered a bit in 2021 and continues to generate profits today. Banco Bradesco is also a well-managed financial services company.
For American investors, BBD’s underlying growth has been wiped out by BRL’s nonstop depreciation relative to the USD. Currency risk is an important factor in international stocks, and BBD is a prime example.
Shares currently yield ~8% and make monthly dividend payments, making the stock an interesting option for income investors. With a payout ratio of 50%, the dividend payout appears secure. At the same time, the company poses various risks, including foreign exchange and economic conditions in Brazil.
Therefore, only risk-tolerant income investors should consider a position in BBD stock.
Don’t miss the resources below for more monthly dividend stock investing research.
- The Monthly Dividend Stocks List
- 20 Highest Yielding Monthly Dividend Stocks
- 10 Cheapest Monthly Dividend Stocks
- 10 Safest Monthly Dividend Stocks
- 3 Top ‘Hold Forever’ Monthly Dividend Stocks
And see the resources below for more compelling investment ideas for dividend growth stocks and/or high-yield investment securities.
- Dividend Kings: 50+ years of rising dividends
- Dividend Champions: 25+ years of rising dividends
- Dividend Aristocrats: 25+ years of rising dividends and in the S&P 500
- Dividend Achievers: 10+ years of rising dividends and in the NASDAQ
- High Dividend Stocks: 4%+ dividend yields
- Blue Chip Stock: Kings, Aristocrats, and Achievers
- MLPs: List of MLPs and more
- REITs: List of REITs and more
- BDCs: List of BDCs and more