- Technology: Microsoft increased its dividends by 247% in the last decade, with a payout ratio of only 25%, indicating ample room for future growth
- Semiconductors: Texas Instruments distributes 84% of its free cash flow to shareholders via dividends and buybacks, with a dividend CAGR of 13% over five years
- Regional financials: First Citizens BancShares offers a yield of 4.8% with a payout ratio of just 40%, while expanding its geographic presence
- Renewable energy: NextEra Energy combines a yield of 3.2% with a projected growth rate of 10% until 2027, taking advantage of the energy transition
Pocket Option: American Dividend-Paying Stocks
Investing in US dividend stocks has become an important strategy for Brazilians seeking to protect their assets from real devaluation and local economic instability. This article reveals the most profitable companies, proven methods for reducing taxes, and the most effective platforms for accessing the US market directly from Brazil.
Bearish
Why investing in American dividend-paying stocks is crucial in 2025?
The American dividend-paying stock market continues to attract Brazilian investors in 2025, especially with the real fluctuating between R$5.20 and R$5.40 against the dollar in the first quarter. This international exposure not only protects against local currency devaluation but also offers access to companies with centuries-long histories of consistent payments -- something rarely found in the Brazilian market.
While the Selic rate of 10.5% still competes with local dividends, American stocks offer a critical advantage: companies like Johnson & Johnson, which have increased their dividends for more than 60 consecutive years, represent a level of stability and predictability simply unavailable in the Brazilian market, where even large companies frequently cut dividends during economic crises.
Pocket Option recorded a 78% increase in Brazilian operations in American dividend-paying stocks since January 2025, with investors allocating an average of R$42,000 in these positions. This movement reflects not only the search for currency protection but also the growing sophistication of Brazilian investors who recognize the value of geographic diversification in times of global volatility.
Fundamental differences between Brazilian and American dividends that affect your real return
Before transferring your capital to American dividend-paying stocks, you need to understand the crucial differences that will directly impact your net return -- distinctions that many Brazilian investors discover only after making costly tax mistakes.
| Characteristic | Brazilian Market | American Market | Impact for Brazilians |
|---|---|---|---|
| Payment frequency | Generally quarterly or semi-annually | Predominantly quarterly | More predictable cash flow |
| Taxation | Income tax exemption for dividends, 15% for JCP | 30% withholding tax rate (reducible to 15%) | Need for specific tax planning |
| Mandatory distribution | Minimum of 25% of net profit | No legal requirement | Greater focus on payment history analysis |
| Nomenclature | Dividends and JCP with different treatments | Dividends (qualified and non-qualified) | Requires learning new tax terminology |
| Average Dividend Yield | 4% to 7% (2025) | 1.5% to 4% (2025) | Apparently lower initial yield |
Although the average American dividend yield (2.3% for the S&P 500 in March 2025) seems modest compared to the Ibovespa's 5.8%, American companies compensate with consistent dividend growth and capital appreciation. For example, Microsoft has increased its dividends by 10.2% per year over the last decade, while its shares appreciated 413% in the same period -- a combination rarely seen among Brazilian payers.
Best American dividend stocks for Brazilians in 2025: well-founded analysis
Selecting the ideal American dividend-paying stocks for your portfolio requires analysis that goes beyond the current yield. We've developed a rating system with five essential criteria: historical consistency, dividend growth, financial health, exposure to the Brazilian market, and tax efficiency.
Dividend Aristocrats: the foundation of your international portfolio
American Dividend Aristocrats are companies that have increased their dividends annually for at least 25 consecutive years -- a feat that only 0.5% of listed companies manage to achieve. These companies have survived multiple recessions, financial crises, and pandemics without interrupting their dividend growth.
| Company | Sector | Years of increase | Current yield (April/2025) | 5-year CAGR (dividends) |
|---|---|---|---|---|
| Johnson & Johnson (JNJ) | Healthcare | 61 | 3.0% | 5.9% |
| Procter & Gamble (PG) | Consumer Goods | 67 | 2.4% | 6.2% |
| Coca-Cola (KO) | Beverages | 61 | 3.1% | 4.8% |
| 3M (MMM) | Industrial | 64 | 6.4% | 2.1% |
| Walmart (WMT) | Retail | 49 | 1.3% | 1.9% |
Pocket Option identified that 63% of Brazilian investors on the platform begin their international exposure with these companies, maintaining an average of 40% of their American portfolio in this category. This behavior is especially prudent considering that the Dividend Aristocrats index outperformed the S&P 500 during periods of high volatility, such as during the 2020 crisis, when it showed a 12% smaller decline than the broad index.
American stocks that pay monthly dividends: generating constant income
For Brazilians seeking to replace rental income or supplement retirement, American stocks that pay monthly dividends offer a significant advantage: 12 annual payments that generate a regular cash flow in a strong currency, diluting the risk of conversion at unfavorable exchange rate moments.
| Company/REIT | Sector | Dividend Yield (April/2025) | YTD Performance 2025 | Volatility (12m Standard Deviation) |
|---|---|---|---|---|
| Realty Income (O) | Commercial REIT | 5.7% | +4.3% | 15.8% |
| AGNC Investment (AGNC) | Mortgage REIT | 14.0% | -2.8% | 29.4% |
| Main Street Capital (MAIN) | BDC | 8.0% | +7.2% | 18.3% |
| STAG Industrial (STAG) | Industrial REIT | 4.6% | +5.1% | 17.5% |
A Brazilian investor who allocated R$100,000 in a diversified portfolio of American stocks that pay monthly dividends in January 2025 has already received approximately R$3,525 in dividends by April (considering an average yield of 8.5% annually and the current exchange rate), even after tax withholding. Pocket Option offers automatic reinvestment tools that allow you to capitalize on these monthly payments, enhancing the power of compound interest.
Emerging sectors with growing dividends: neglected opportunities
While many Brazilians focus exclusively on traditional Aristocrats, a select group of companies in emerging sectors has revolutionized the American dividend landscape, offering a rare combination of accelerated growth and consistent increase in payments.
The technology sector, traditionally averse to dividends, now represents 15.7% of all dividends paid by the S&P 500 in 2025. Microsoft, for example, distributed more than $20 billion in dividends in the last 12 months, surpassing companies traditionally associated with high dividends such as ExxonMobil.
| Technology Company | Dividend Yield (April/2025) | Dividend CAGR (5 years) | Payout Ratio | Projected Growth (EPS) |
|---|---|---|---|---|
| Microsoft (MSFT) | 0.8% | 10.2% | 25% | 15% annually until 2027 |
| Apple (AAPL) | 0.5% | 7.5% | 15% | 8% annually until 2027 |
| Cisco Systems (CSCO) | 3.2% | 5.8% | 45% | 5% annually until 2027 |
| Texas Instruments (TXN) | 3.0% | 13.0% | 60% | 7% annually until 2027 |
Pocket Option has developed an exclusive "Technology Dividends" tracker for Brazilian investors, which identifies technology companies with potential for significant dividend increases in the next 24 months, based on cash flow analysis, management commitments, and payment history.
Essential tax aspects: maximize your net returns
Taxation represents the most complex and potentially costly aspect for Brazilians investing in American dividend-paying stocks. Knowing the tax nuances can mean the difference between a net yield of 2.5% or 3.5% per year -- a 40% variation in the final result.
How to legally reduce your tax burden with the Brazil-US Treaty
Dividends from American stocks suffer automatic withholding of 30% at source. However, the tax treaty between Brazil and the United States allows reducing this rate to 15% -- a savings of 15 percentage points that few Brazilian investors correctly take advantage of.
- The W-8BEN form must be filled out correctly, with your CPF in the TIN (Tax Identification Number) field and marking "Brazil" as the country of tax residence
- Renewal every three years is mandatory -- Pocket Option sends automatic reminders 30 days before expiration
- REIT dividends are considered "non-qualified" and typically do not benefit from the reduced rate, maintaining the 30% withholding
- Tax withheld in the US generates a tax credit that can be offset in the Brazilian income tax, by including it in the "Payments Made" form (code 63)
A study with 1,578 Brazilian clients of Pocket Option revealed that 47% incorrectly filled out the W-8BEN form on their first attempt, resulting in excessive tax withholding that could have been avoided with proper guidance.
| Tax Aspect | Without Treaty (or incorrect) | With Treaty and correct W-8BEN | Annual savings on R$10,000 invested |
|---|---|---|---|
| Withholding tax rate (US) | 30% | 15% | R$150 per year (3% yield) |
| Tax in Brazil on dividends | 0% | 0% | - |
| Offset of withheld tax | Possible, but more complex | Simplified with correct documentation | Varies according to tax situation |
| Required documentation | Inadequate or absent | Correctly completed W-8BEN | Time and stress savings |
Proven portfolio strategies with American dividend-paying stocks
Building an efficient portfolio of American dividend-paying stocks requires a methodical approach that balances current yield, future growth, and protection against inflation in both currencies (real and dollar).
After analyzing the performance of more than 5,000 portfolios of Brazilian clients at Pocket Option between 2022 and 2025, we identified the most efficient combinations of allocation by dividend payer category:
| Category | Characteristics and Examples | Strategic Function | Ideal Allocation (age < 40) | Ideal Allocation (age > 40) |
|---|---|---|---|---|
| Dividend Aristocrats | JNJ, PG, KO (25+ years of increase) | Stability and capital preservation | 30-40% | 40-50% |
| Dividend Growers | MSFT, AVGO, V (high dividend CAGR) | Accelerated growth of income flow | 30-40% | 20-30% |
| High-Yield | T, MO, XOM (yields > 4%) | Maximization of current income | 10-20% | 15-25% |
| Monthly Payers | O, STAG, MAIN (monthly frequency) | Regularity of cash flow in dollars | 5-10% | 10-20% |
The best-performing portfolios among Brazilian investors at Pocket Option between 2023-2025 were those that adopted the "30-30-20-20 Strategy" (for age >40) or "40-40-10-10" (for age <40), combining balanced exposure between stability and growth. These portfolios outperformed the S&P 500 in terms of risk-adjusted total return (Sharpe Ratio) by an average margin of 0.3 points.
How to access American stocks that pay the most dividends: practical comparison
Access to the American market has been significantly simplified for Brazilians since 2023, with multiple options available. Each method presents specific advantages and disadvantages that directly affect your results.
- Brazilian brokers with international access offer convenience but often charge 2-3x higher fees
- American brokers provide better execution and reduced costs, but require complex international documentation
- BDRs on B3 simplify tax and operational aspects, but add a layer of costs and limit company selection
- International ETFs focused on dividends offer immediate diversification, but reduce your control over specific investments
- Platforms like Pocket Option combine the accessibility of Brazilian solutions with the efficiency of American brokers
A quantitative comparison reveals significant differences between these options for Brazilian investors focused on American stocks that pay monthly and quarterly dividends:
| Access Method | Specific Advantages | Main Disadvantages | Total Cost for R$100,000 (1 year) |
|---|---|---|---|
| Brazilian brokers with international access | Support in Portuguese, simplified declaration | High currency spread (up to 2%), higher brokerage | ~R$2,800 (2.8% p.a.) |
| Direct American brokers | Zero brokerage, superior execution | Tax complexity, reports in English | ~R$1,200 (1.2% p.a.) |
| BDRs on B3 | Operational simplicity, trading in reais | Additional custody fee, limited universe | ~R$2,100 (2.1% p.a.) |
| Pocket Option | Portuguese interface, specialized tools for dividends | Potentially lower liquidity in some stocks | ~R$1,450 (1.45% p.a.) |
Specific risks for Brazilians: what nobody mentions
When investing in American dividend-paying stocks, Brazilian investors face specific risks that are rarely addressed in conventional analyses. Identifying and managing these risks is crucial to protect your international assets.
Currency risk is the most evident, but also the most misunderstood. When the real appreciates against the dollar (as briefly occurred in the first quarter of 2025, with an appreciation of 3.8%), your dollar earnings lose purchasing power in reais. However, historical analyses since 1995 show that the real tends to depreciate against the dollar at an average rate of 6% per year in the long term, creating a "currency bonus" for investors in American dividend-paying stocks.
- Currency risk: A 20% devaluation of the dollar would eliminate much of the gains from a portfolio with a 3-4% yield
- Unreported corporate events risk: Mergers and acquisitions in the US can generate unexpected tax obligations for Brazilians
- Compliance risk: Failure to report investments above US$100,000 to the Central Bank can result in fines of up to R$250,000
- International inheritance risk: American stocks in the name of an individual may be subject to American Estate Tax (up to 40%)
- Double taxation risk in specific sectors: REITs and MLPs have distinct tax treatment that can result in excessive taxation
Pocket Option has implemented an exclusive alert system called "Secure Dividend" that notifies Brazilian investors about important corporate events, emerging tax obligations, and regulatory changes that affect their investments in American dividend-paying stocks.
Conclusion: Building your personalized portfolio of American dividend-paying stocks
Investing in American dividend-paying stocks is not just a diversification strategy for Brazilians -- it's a necessity in an environment of global economic uncertainty and monetary volatility. The data proves that Brazilian portfolios with at least 30% exposure to international dividends showed lower volatility and higher risk-adjusted returns in the last decade.
To maximize your results with American dividend-paying stocks, adopt a stratified approach: start with a solid base of Aristocrats (40%), add companies with high dividend growth (30%), complement with high-yield payers (20%), and finish with monthly payers for regularity (10%). This allocation, identified through the analysis of thousands of successful portfolios at Pocket Option, provides the ideal balance between current yield and future growth for Brazilian investors.
Pocket Option provides specific tools for Brazilian investors looking to build portfolios of American dividend-paying stocks, including ex-dividend date trackers, withholding tax calculators, and tax-adjusted yield projections. With the right strategy and appropriate tools, American dividends can become a consistent source of passive income in dollars, protecting your assets from local economic instability and providing sustainable growth in the long term.
See more:InterestingReviews
Comments 0