Brazil's Monetary Policy Committee (Copom) reduced the benchmark Selic rate by 25 basis points to 14% on Wednesday, marking the fourth consecutive cut in the current easing cycle.
The decision lowers the reference rate for the CDI benchmark, which now hovers around 13.98%, creating a new yield environment for income-focused investors.
According to market analysis from Infomoney, thirteen Brazilian stocks now distribute dividends at rates exceeding the CDI benchmark.
This shift highlights a growing divergence between fixed-income returns and equity yields as the central bank continues to normalize monetary policy.
Investors seeking income are increasingly looking beyond traditional fixed-income instruments to equities that can sustain higher payout ratios in a lower-rate environment.
The move follows a broader trend in Brazilian real estate investment funds (FIIs), which have been distributing dividends with yields reaching up to 1.80% for some payouts.