- Petrobras - both the common and preferred shares - currently pays ~20%-yielding dividends. Indications are cash distribution may be kept in the near future.
- In this article, I analyze the origin of such high-yield dividends, and certain hidden risk factors that threaten the high-yield prospect in the medium term.
- I go on to identify a blind spot in using conventional valuation metrics to justify Petrobras as a deep value.
- I then point out shareholders should monitor its capital budget for signs of a safe early exit.
For further details see:
Is Petrobras A Good Dividend Stock?