Vale to pay large dividends, despite billion-dollar Brumadinho settlement

Friday, 05 February 2021 20:14:34 (GMT+3)   |   Sao Paulo
       

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.


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