Petrobras: Not For The Faint Of Heart

A.J. Button
12.2K Followers

Summary

  • Petrobras stock is famed for its sky-high dividend yield.
  • If we assume that the recent payment is maintained, then the stock will yield 20%.
  • However, PBR's dividend track record is a little shaky.
  • The stock faces some political risk, too.
  • In this article, I give PBR a 'buy' rating, but counsel investors to beware certain risks.

Bolsonaro Reshuffles Cabinet Ahead of October Elections

Andressa Anholete/Getty Images News

Petrobras (NYSE:PBR) stock is well known for its high dividend yield. It recently announced a US$0.68 dividend, which annualizes to $2.72, giving us a possible annualized yield of 21.5%. I say "possible" because PBR's dividend payments aren't stable. We can talk about

This article was written by

12.2K Followers
Financial journalist. Passed CFA Level 1. Seeking value and dividend growth opportunities, and sharing what I find on Seeking Alpha. Follow me on Youtube and Twitter: twitter.com/AJButton2

Analyst’s Disclosure:I/we have a beneficial long position in the shares of OXY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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