Dividends and IOE

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.

Payout and Yield

DIVIDEND DISTRIBUTION (R$ million)​ ​

2020 2021 2022 2023 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25
Metalúrgica Gerdau S.A.
Adjusted net income
(Dividend base)*
771 4,696 3,391 2,070 652 276 435 105 245 284
Dividends distributed 259 2,530 1,317 1,590 196 82 132 50 79 80
Payout 33.6% 53.9% 38.8% 76.8% 30.0% 29.9% 30.3% 47.6% 32.3% 28.0%
Yield ** 2.1% 25.7% 11.0% 11.9% 13,9% 11.7% 4.1% 4.4% 3.8% 3.8%

* Note to shareholders’ equity.
** Dividend Yield corresponds to the sum of dividends paid over the last 12 months, divided by the share price at the end of the quarter.