Dividend Policy
According to Brazilian legislation, companies listed on the Stock Exchange are obliged to distribute a percentage of their profits to their shareholders, in the form of dividends or interest on equity (IOE).
Management believes that the most appropriate way to increase absolute dividends is from the cash generation it has been delivering, thus maintaining the policy of distributing a minimum of 30% of the adjusted net profit for the year, calculated in accordance with Brazilian accounting practices.
Since March 31, 2003, Metalúrgica Gerdau S.A. and Gerdau S.A . have been paying dividends and/or IOE quarterly as advance payment of mandatory dividends.
DIVIDEND DISTRIBUTION (R$ million)
| 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 1Q23 | 2Q23 | 3Q23 | 4Q23 | 1Q24 | 2Q24 | 3Q24 | |
| Metalúrgica Gerdau S.A. | |||||||||||||||||||
| Adjusted net income (Dividend base)* |
705 | 408 | 451 | 171 | (2.329) | (1.378) | (203) | 653 | 403 | 771 | 4.696 | 3.391 | 1.006 | 637 | 492 | 126 | 652 | 276 | 435 |
| Dividends distributed | 224 | 130 | 150 | 118 | 16 | – | 20 | 245 | 126 | 259 | 2.530 | 1.317 | 309,8 | 227,2 | 960.4 | 52 | 196 | 82 | 132 |
| Payout | 31,8% | 31,9% | 33,3% | 69,0% | – | – | – | 37,5% | 31,3% | 33,6% | 53,9% | 38,8% | 30,8% | 35,7% | 195.25% | 40.9% | 30.0% | 29.9% | 30.3% |
| Yield ** | 2,1% | 1,8% | 1,6% | 1,2% | 0,4% | – | 0,4% | 4,3% | 1,3% | 2,1% | 25,7% | 11,0% | 2,4% | 2,3% | 15.5% | 11.9% | 13,9% | 11.7% | 4.1% |
* Note to shareholders’ equity.
** Dividends paid per share during the fiscal year/share price at the beginning of the fiscal year.
