Brazilian companies paid out record dividends in 2021

Led by mining giant Vale — the eighth largest dividend payer in the world — Brazilian companies distributed record dividends last year. Companies in the country distributed a total of USD 25.4 billion in 2021, up from USD 9.4 billion in the previous year, according to a report by management firm Janus Henderson Investors.

The figure was the third-highest among emerging markets, behind only China and Russia. Indeed, Brazil accounted for over half of the growth in dividends in developing countries, which totaled USD 164.4 billion.

In Brazil, Vale was responsible for almost half of the amount distributed, around USD 12.4 billion. The number was the world’s second-highest for a mining company, beaten only by Anglo-Australian group BHP.

The giant Brazilian miner announced the resumption of its dividend policy in July 2020, after an interruption of roughly 18 months following the collapse of its dam in Brumadinho back in 2019, which killed more than 250 people.

But the scenario for this year could still change. “Iron ore prices are an important factor, and while they have recovered from a devaluation, they are at a lower point than they were for most of 2021,” states the report.

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