Last year, 11 companies listed on B3, the Brazilian stock exchange, gave stock bonuses to their shareholders, according to data collected by Economatica. SLC Agrícola, Itaúsa (holding company that includes Itaú Unibanco, XP, Alpargatas, among other companies), Dexco, Lojas Renner, Porto Seguro, Bradesco, Panatlântica, Cemig, Bradespar (Bradesco’s non-financial arm), Schulz and SulAmérica distributed shares without charging nothing for them.
The bonus is the free distribution of new shares proportional to the capital already invested by the shareholders of a company. It is a way of compensating the investor when the company is doing well financially, that is, earning higher-than-expected profits.
She resorts to the practice when she does not want to pay dividends – mandatory distribution for companies that generate profit, proportional to the gains of the business and pays in determined periods – interest on equity (JCP), a type of dividend before profit, or decrease the participation of majority shareholders.
It can also be a way of enable an adjustment in the share price, making the price more attractive and accessible to a greater number of investors or even improve the adequacy of the balance of profit reserves against to legal limits.
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Below you can see the complete list of companies that received bonuses in 2011:
Action | Class | Code | Last earnings date |
Agricultural SLC | ON | SLCE3 | 12/30/2021 |
Itausa | ON | ITSA3 | 12/20/2021 |
PN | ITSA4 | 12/20/2021 | |
dexco | ON | DXCO3 | 12/14/2021 |
Renner stores | ON | LREN3 | 11/04/2021 |
safe harbor | ON | PSSA3 | 10/20/2021 |
Bradespar | ON | BRAP3 | 09/20/2021 |
PN | BRAPA | 09/20/2021 | |
Panatlantic | ON | PATI3 | 08/30/2021 |
PN | PATI4 | 03/08/2021 | |
Cemig | ON | CHIG3 | 04/30/2021 |
PN | CHIGA | 04/30/2021 | |
Bradesco | ON | BBDC3 | 04/16/2021 |
PN | BeDC4 | 04/16/2021 | |
Schulz | ON | SHUL3 | 04/15/2021 |
PN | SHULA | 04/15/2021 | |
South America | ON | SULA3 | 03/29/2021 |
PN | SULA4 | 03/29/2021 | |
UNT N2 | SULA11 | 03/29/2021 |
Source: Economatica
Free choice
Unlike the payment of dividends, the bonus is not mandatory by law and the volume of shares distributed is freely chosen by each company. Bradesco, for example, had a record recurring net income of R$26.2 billion in 2021 and has already announced a 10% share bonus this year, if approved at the Extraordinary General Meeting.
Last year, the bank had already subsidized shareholders in 10% of the shares. In the previous year it had given 20%. Since 1972, Bradesco has maintained an almost annual share bonus practice. Itaúsa, on the other hand, also gave bonus shares in 2020, a total of 5% of the capital invested, but in the two previous years it did not make use of the practice.
There is no set date for the bonus to occur. This is a decision deliberated at the general meeting by the vote of the shareholders. It is worth noting that there is no increase in the company’s resources, but rather a movement of internal accounts, without changing its net worth, but rather the company’s shareholding base, which increases.
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Stock bonus is well evaluated
As it is a voluntary act of the company, it is a well-regarded practice in the financial market. It attracts new investors and speculators, as the number of trades and the liquidity of its securities tend to increase when a company makes its announcement.
The first consequence of the bonus is the drop in the price of individual shares. Even if the price falls, the quantity of shares increases proportionately. Thus, the invested capital remains unchanged and the investor does not lose money in the final account.
Although the practice is not mandatory by law, it follows a few rules. It is necessary to decide at a general meeting the date and number of shares to be distributed. Then, issue a material fact (communication to the market) with information about the bonus, including an indication of the deadline for the purchase of shares that will guarantee its receipt.
On the date of distribution of shares, the capital that each investor has in the company is considered. And, the next time the company pays dividends (dividends or interest on equity), the shareholder will receive more, as he now owns more shares.
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