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Companhia Siderúrgica Nacional Message Board

  • memewin22003 memewin22003 Jul 6, 2011 3:13 PM Flag

    The dividend:

    What is the annual dividend on this stock and how is it paid - quarterly or semi annually?
    What percentage does Brazil take in taxes.

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    • The dividend payout is once per year for this stock. The yield for this dividend depends on the price you paid for the stock, so is variable for each individual. I did the calculation for dividend return based on the last four years of payouts and used the stock price on the pay date as a baseline for each year. In April 2008 the div was $0.57 and the stock was at $20 per share so the yield was 2.85%. In May 2009 they paid $0.43 div and stock was at $7.71 so yield was 5.58%. In May 2010 the div was $0.58 and the stock price was $18.09 so yield was 3.20%. In May 2011 they paid div of $0.81 with a stock price of $16.10 for a yield of 5.03%. The summation of these four years leaves you with an average return of 4.15% with the avg. price of stock at $15.47. This stock is now trading at about $12 per share; if you were to buy it at this price and get the $0.81 dividend they paid last year, your yield with those numbers would be $0.81/$12 equals 6.75%. I hope this is a helpful calculation for you all.

    • So I still missed the answer to the posters original question. Does anyone have a rough estimate of what the annual dividend % is? An article on Motley Fool says is 13%, from looking at other posts it appears to be 7% annually. Also, since it's paid annually, do you have to be in by May each year to get (meaning it would be too late for this year)?

      Thank you.

    • Hi Meme,

      "U.S. companies could learn something from Brazil. In Brazil, dividends are mandated. Brazilian companies are required to distribute at least 25% of their earnings to shareholders. It is doubtful that the Brazilian dividend mandate is intended to be a shareholder-friendly regulation. This is Brazil we are talking about. The country isn’t exactly known as a bastion of free-market capitalism. The mandate is most likely in place to ensure that the government can collect more tax revenue from shareholders.

      Whatever the motivation, the dividend mandate has appeal to income investors. As long as a Brazilian company is profitable, you can count on a dividend. Wouldn’t it be nice if all profitable U.S. companies paid a dividend? It would certainly make for a more attractive income-investing environment."



    • The Brazilian government allows CSN to pay their shareholders an interest payment on the yearly dividend they pay to stockholders; i.e. you get a check for the dividend and one for the interest paid because the company held onto your dividend for a full year. The tax you then pay is on the interest payment portion. For the fiscal year 2010, the tax was 2.89% of the total paid to me for the yearly dividend plus interest payments. So for every $100 in dividend money paid, you returned the tax of $2.89 to the Brazil government.

      The typical US stock company pays dividends quarterly and does not pay you any interest for holding your money for a few extra weeks between end of quarter and payment dates. The US companies end up holding your money for a couple of months per year (say two week every quarter) and you get no interest payment for that "service." Brazilian company/dividend rules are much more shareholder friendly IMO.

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