Vale is expected to still pay dividends, despite a $7 billion (BRL 37.6 billion) settlement over Brumadinho, Credit Suisse said.
According to Credit Suisse, the bigger expenses due to the Brumadinho settlement could reduce Vale’s EBITDA by $3.7 billion. Analysts at Credit Suisse estimated Vale could reduce its “minimum” dividend by up to $1 billion, which would reduce the dividend yield by 1.3 percent.
However, despite the adjustments, Vale would still have room to pay generous dividends given its good debt profile, Credit Suisse said.