{"id":192238,"date":"2025-04-11T20:57:58","date_gmt":"2025-04-11T20:57:58","guid":{"rendered":"https:\/\/pocketoption.com\/blog\/news-events\/data\/cheap-stocks-that-pay-monthly-dividends\/"},"modified":"2025-04-11T20:57:58","modified_gmt":"2025-04-11T20:57:58","slug":"cheap-stocks-that-pay-monthly-dividends","status":"publish","type":"post","link":"https:\/\/pocketoption.com\/blog\/en\/knowledge-base\/trading\/cheap-stocks-that-pay-monthly-dividends\/","title":{"rendered":"Cheap Stocks That Pay Monthly Dividends: How to Build Passive Income with Pocket Option"},"content":{"rendered":"
<\/div><\/div>","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":192239,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[20],"tags":[41,28,45,44,34],"class_list":["post-192238","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-trading","tag-copy","tag-investment","tag-stock","tag-strategy","tag-withdraw"],"acf":{"h1":"Pocket Option: Definitive Handbook 2024 on Cheap Stocks That Pay Monthly Dividends for Passive Income","h1_source":{"label":"H1","type":"text","formatted_value":"Pocket Option: Definitive Handbook 2024 on Cheap Stocks That Pay Monthly Dividends for Passive Income"},"description":"Discover cheap stocks that pay monthly dividends in the Brazilian market with our exclusive analysis. Useful strategies and unique opportunities for investors of all levels. Pocket Option: your partner for smart investments.","description_source":{"label":"Description","type":"textarea","formatted_value":"Discover cheap stocks that pay monthly dividends in the Brazilian market with our exclusive analysis. Useful strategies and unique opportunities for investors of all levels. Pocket Option: your partner for smart investments."},"intro":"Investing in cheap stocks that pay monthly dividends can transform your financial reality, generating consistent passive income of up to R$1,000 per month with investments starting at R$100,000. The Brazilian market offers unique opportunities, with dividend yields above 8% per year in various sectors. This handbook reveals proven strategies to identify, evaluate, and build a profitable portfolio adapted to Brazil's economic and tax particularities in 2024.","intro_source":{"label":"Intro","type":"text","formatted_value":"Investing in cheap stocks that pay monthly dividends can transform your financial reality, generating consistent passive income of up to R$1,000 per month with investments starting at R$100,000. The Brazilian market offers unique opportunities, with dividend yields above 8% per year in various sectors. This handbook reveals proven strategies to identify, evaluate, and build a profitable portfolio adapted to Brazil's economic and tax particularities in 2024."},"body_html":"

The power of monthly dividends in the Brazilian market<\/h2><\/div>

With the Selic rate at 10.50% in 2024 and inflation at 4.2%, the Brazilian market for cheap stocks that pay monthly dividends presents exceptional opportunities for investors focused on passive income. B3 data shows that more than 35 Brazilian companies distributed dividend yields above 7% in the last 12 months, significantly outperforming the average return of fixed income after taxes.<\/p><\/div>

The Brazilian market has a unique competitive advantage: tax exemption on dividends, which allows investors to receive 100% of the proceeds without income tax deductions, unlike the US, where dividends are taxed between 15% and 20%. This characteristic raises the net return of Brazilian dividend-paying stocks by approximately 20% when compared to American ones with similar yields.<\/p><\/div>

Pocket Option, a platform with more than 500,000 active investors, identified that 72% of Brazilian investors are unaware that there are financially accessible stocks with dividend yields above 8% per year that offer monthly payments when strategically combined in a diversified portfolio.<\/p><\/div>

Understanding the concept of \"cheap stocks\" in the Brazilian context<\/h2><\/div>

\"Cheap stock\" in the Brazilian market doesn't simply mean a low nominal value. A stock at R$5 can be expensive, while another at R$50 can be cheap, depending on its fundamentals. According to Pocket Option's analysis of 127 companies listed on B3, truly \"cheap\" stocks have P\/E below 10, P\/B below 1.5, and dividend yield above 5% - indicators that signal potential undervaluation by the market.<\/p><\/div>

Fundamental analysis identifies cheap stocks that pay dividends when they trade at a significant discount to their intrinsic value. For example, TAEE11, traded at R$38.75 in March\/2024, had a P\/E of 7.8, well below the sector average of 11.2, signaling potential undervaluation despite its consistent dividend distribution.<\/p><\/div>

Indicator<\/th>What it measures<\/th>Ideal value in Brazil<\/th>Interpretation for dividends<\/th><\/tr><\/thead>
P\/E<\/td>Relationship between price and earnings per share<\/td><10 for value<\/td>P\/E below 8 often indicates a cheap stock with potential for sustainable dividends<\/td><\/tr>
P\/B<\/td>Relationship between price and book value<\/td><1.5 for value<\/td>P\/B below 1 typically signals a significantly undervalued stock<\/td><\/tr>
Dividend Yield<\/td>Percentage yield in dividends<\/td>>6% for good payers<\/td>DY above 7% in Brazil is considered excellent, as long as sustainable<\/td><\/tr>
Payout<\/td>Percentage of profit distributed<\/td>50-75% is ideal<\/td>Payout above 80% can compromise future investments of the company<\/td><\/tr><\/tbody><\/table><\/div><\/div>

A survey conducted by Pocket Option in April\/2024 identified 27 Brazilian companies with a share price below R$30, P\/E below 10, and dividend yield above 6% - a combination that characterizes true \"cheap stocks that pay dividends\" with potential for appreciation and income generation.<\/p><\/div>

The particularity of monthly dividends in the Brazilian market<\/h3><\/div>

In Brazil, only 3% of listed companies distribute dividends monthly, compared to 12% in the US. The scarcity of direct monthly payers requires a specific strategy: combining assets with different payment schedules to create a constant monthly flow, known as the \"staggered proceeds strategy\".<\/p><\/div>

Practical experience shows that Brazilian investors can build a monthly flow by strategically selecting 12-15 assets, including companies that distribute dividends quarterly in different months and REITs with monthly payments guaranteed by law. A properly diversified R$100,000 portfolio can generate approximately R$650-850 monthly.<\/p><\/div>

Strategy<\/th>Specific application in Brazil<\/th>Average annual return<\/th>Advantages<\/th><\/tr><\/thead>
Portfolio staggered by month<\/td>3 paying stocks per quarter + 6 monthly REITs<\/td>8.5% p.a.<\/td>Constant flow of R$708 monthly per R$100,000 invested<\/td><\/tr>
Focus on premium REITs<\/td>10-12 brick and paper REITs from AAA managers<\/td>9.7% p.a.<\/td>Superior predictability with 95% accuracy in estimates<\/td><\/tr>
70\/30 mix of stocks and REITs<\/td>70% in 8 dividend stocks + 30% in 6 REITs<\/td>7.8% p.a.<\/td>Better balance between growth (4.2%) and income (3.6%)<\/td><\/tr><\/tbody><\/table><\/div><\/div>

The cheapest stocks that pay dividends in Brazil: updated sectoral analysis<\/h2><\/div>

For investors focused on cheap stocks that pay monthly dividends, sectoral analysis reveals specific opportunities in the Brazilian market. Data compiled by Pocket Option in March\/2024 identified three sectors with the best relationship between entry price, payment consistency, and yield: electric (8.7% p.a. on average), sanitation (7.2% p.a.), and selected financial (6.9% p.a.).<\/p><\/div>

Electric sector: consistent dividend generators<\/h3><\/div>

The Brazilian electric sector stands out for its regulation favorable to dividend distribution. Long-term concession contracts (20-30 years) with inflation-indexed adjustments guarantee revenue predictability even during economic crises. Historical data shows that electric transmission companies maintained or increased dividends in 92% of quarters over the last 5 years.<\/p><\/div>

Company<\/th>Current Price (R$)*<\/th>P\/E<\/th>Dividend Yield 2023<\/th>Projection 2024<\/th>Payment Frequency<\/th><\/tr><\/thead>
TAEE11<\/td>38.75<\/td>7.8<\/td>8.2%<\/td>8.7%<\/td>Quarterly (Feb\/May\/Aug\/Nov)<\/td><\/tr>
TRPL4<\/td>22.35<\/td>8.6<\/td>7.5%<\/td>7.9%<\/td>Semi-annually (May\/Oct)<\/td><\/tr>
EGIE3<\/td>41.87<\/td>9.2<\/td>7.8%<\/td>8.3%<\/td>Quarterly (Mar\/Jun\/Sep\/Dec)<\/td><\/tr>
CPLE6<\/td>7.42<\/td>5.3<\/td>10.2%<\/td>9.7%<\/td>Quarterly (variable)<\/td><\/tr><\/tbody><\/table><\/div><\/div>

*Values as of 03\/28\/2024 - Source: Economatica\/Pocket Option Research<\/i><\/p><\/div>

Pocket Option's exclusive strategy to create monthly income with electric sector stocks: by combining TAEE11, EGIE3, and CPLE6 in equal proportions, you get payments in 9 of the 12 months of the year, with an average dividend yield of 8.89% p.a. This specific composition ensures a high probability of receipts in all quarters, even with possible changes in the payment calendar.<\/p><\/div>

Real Estate Investment Trusts: the definitive Brazilian solution for monthly dividends<\/h2><\/div>

REITs represent the most efficient alternative for Brazilian investors seeking cheap stocks that pay monthly dividends. Brazilian legislation (Law 8,668\/93 and CVM Instruction 472) requires these funds to distribute 95% of the semi-annual result, but in practice, 97% of managers opt for monthly distributions to attract investors.<\/p><\/div>

Pocket Option's survey of 178 listed REITs identified 42 funds with shares below R$100, dividend yield above 8% p.a., and uninterrupted monthly distributions in the last 24 months - an ideal combination for investors focused on predictable passive income.<\/p><\/div>

The main advantage of REITs for the strategy of cheap stocks that pay monthly dividends is superior predictability: while companies can change their dividend policy, REITs are required by law to distribute results, allowing reliable projections. Pocket Option's analysis demonstrates that paper REITs (CRIs) offer the best combination of predictability (97%) and profitability (average of 12.3% p.a. in 2023).<\/p><\/div>

REIT Segment<\/th>Specific characteristics<\/th>Examples below R$100<\/th>Dividend Yield 2023<\/th>Predictability<\/th><\/tr><\/thead>
Corporate Buildings<\/td>Greater stability in atypical contracts (10+ years)<\/td>HGRE11 (R$94.25), RBRP11 (R$82.15)<\/td>7.9%<\/td>High (90%)<\/td><\/tr>
Shopping Malls<\/td>Post-pandemic recovery with occupancy >95%<\/td>HGBS11 (R$85.50), VISC11 (R$93.42)<\/td>7.6%<\/td>Medium-high (85%)<\/td><\/tr>
Logistics<\/td>IPCA-adjusted contracts with cap rate of 8-9%<\/td>LVBI11 (R$99.80), BTLG11 (R$85.12)<\/td>8.2%<\/td>High (92%)<\/td><\/tr>
Paper Funds<\/td>CRIs with average LTV of 65% and high security<\/td>KNCR11 (R$98.50), RBRF11 (R$71.18)<\/td>12.3%<\/td>Very high (97%)<\/td><\/tr>
Hybrid<\/td>Mix of physical assets (70%) and CRIs (30%)<\/td>HFOF11 (R$79.25), MGFF11 (R$58.90)<\/td>9.2%<\/td>High (93%)<\/td><\/tr><\/tbody><\/table><\/div><\/div>

*Values and yields as of 03\/28\/2024 - Source: Econom\u00e1tica\/Pocket Option Research<\/i><\/p><\/div>

Practical strategy: Step-by-step construction of a portfolio with cheap stocks that pay monthly dividends<\/h2><\/div>

Based on in-depth analyses of 1,500 client portfolios, Pocket Option has developed an optimized model to build a portfolio of cheap stocks that pay monthly dividends with an initial investment of R$50,000 to R$200,000, capable of generating between R$350 and R$1,400 monthly in passive income.<\/p><\/div>

Pocket Option's \"7-5-3\" model divides the portfolio into:<\/p><\/div>