Double-Digit Dividend Yield: Why Vale Stands Out


  • Vale's valuation is attractive, trading at a P/E of ~4.2x for 2025, with an EPS forecast implying a 24% earnings yield and a double-digit dividend yield.
  • Despite long-term risks in iron ore, Vale's efficiency and growth in energy transition metals like copper and nickel offer promising diversification and margin improvement.
  • Brazil's economic and legal challenges justify Vale's discount compared to peers, but the potential for high yields makes it appealing for risk-tolerant investors.
  • Vale is a resilient, dollarized company with attractive dividends, offering de-correlation from US equities and benefiting from commodity cycle turns.

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