Abstract Aerial Art
Investment Thesis
I recommend holding Petrobras (NYSE:PBR) shares. On April 15, 2024, I wrote an article to start covering the Petrobras case, and at the time, I expressed a skeptical view of the company that, until
Petrobras: This Is Why Dividends Will Be Smaller And Smaller
Summary
- I recommend holding Petrobras shares due to strategic changes, declining oil prices, and new explorations, which will reduce dividend payments.
- Petrobras' shift from core oil extraction to diversified investments under new management is expected to negatively impact returns and dividend payouts.
- Declining oil prices amid recession fears and increased CapEx raise concerns about Petrobras' future profitability and dividend sustainability.
- Potential management changes post-2026 elections could revalue Petrobras' assets, but current risks justify holding rather than buying or selling.
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