Petrobras: We Shouldn't Be Unnerved By The Overblown Dividend Crisis

Summary

  • Petrobras investors faced significant uncertainty over the extraordinary dividend payouts.
  • However, recent reports suggest the board has endorsed a 50% payout, potentially calming investor fears.
  • PBR buying momentum has remained robust and has improved since it bottomed out in March.
  • The threat of further government intervention will likely dampen a sharp valuation re-rating.
  • However, PBR's highly attractive valuation suggests the market has likely baked in these headwinds. Don't be unduly concerned.
  • Looking for a helping hand in the market? Members of Ultimate Growth Investing get exclusive ideas and guidance to navigate any climate. Learn More »

Petrobras building in Rio de Janeiro

FabioIm

Petróleo Brasileiro S.A. (NYSE:PBR) investors endured a torrid two months as they dealt with the uncertainties emanating from Petrobras's extraordinary dividend payout. As a reminder, the government seems displeased with paying these dividends to shareholders. Still, the

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