https://www.youtube.com/watch?v=mpuj2km_nd0
Insurers bring fame of good payers dividends and with Harbor (PSSA3) It’s no different. Renewing historical maxims and with the high profit, the company today has a policy of paying about 40% of its profit (Payout), with 5%yield.
However, in the past, the company has already practiced 50%payout. In an interview with Money MindsInterview Program of the Money Times, Celso DamadiCFO of the company, does not rule out the return of that value.
“There is room to gradually resume a payout close to 50%, which translates into an estimated dividend yield in the 5%range, which already observed as a reference by the market.”
He says the reduction in recent years has been due to the intense cycle of investments made in the last five years, especially in digitization and technology.
“This effort has already brought concrete results: administrative expenses have retreated more than five percentage points in the last ten years. Several technological platforms – such as those linked to car, health, bank and consortium segments – have been fully reformulated, expected to be completed in 2025.”
Now, he says, the Return on Heritage (ROE) It has evolved from average levels of 18% to 19% to levels greater than 20%, more consistently.
In addition, the four business verticals have shown growth rates over 20%, focusing not only on expansion but also profitability.
“From a financial point of view, the current cash, liquidity and solvency level allows to project, in the medium term and under normal conditions, the return to a 50%order, percentage previously practiced.”
Is it worth investing in Porto?
In a recommended portfolio, Empiricus says that Porto has sought diversifying its portfolio not only with the sale of other insurance (such as mobile, life, residence, etc.), but also in other verticals such as health/odonto, services and bank, “which have high profitability and have been showing great growth, softening the most challenging fleet moment”.
In terms of valuation, Porto Seguro negotiates for only 9x expected profits for 2025, a dividend yield greater than 5% and chances to positively surprise the market.
“Leader in the Auto Insurance segment with 28% market share, also considering its most affordable blue brand, Porto is a thesis that unites a long and great history of execution with interesting multiples.”
Source: Moneytimes
I am an author and journalist with a focus on market news. I have worked for a global news website for the past two years, writing articles on a range of topics relating to the stock market. My work has been published in international publications and I have delivered talks at both academic institutions and business conferences around the world.
