10 Best Dividend Penny Stocks to Buy Now

4. Banco Bradesco S.A. (NYSE:BBD)

Number of Hedge Funds: 20 (2024Q2)

Share Price as of the Close of September 25: $2.60

Banco Bradesco S.A. (NYSE:BBD) is a Brazilian financial services company providing banking products and services to individuals, corporations, and businesses in Brazil and internationally. It operates through its two segments, namely Banking and Insurance.

Banco Bradesco S.A. (NYSE:BBD) has had strong second-quarter results in 2024, reporting a 12% increase in net income for the quarter, amounting to BRL4.7 billion ($770.6 million). The profitability growth can be attributed to a solid loan portfolio and a strategic mix, characterized by an evolution of net NII driven by client NII quarter-on-quarter and the reduction in control of loan loss provision expenses. The company has also had its total loan portfolio reach over BRL 912 billion, with noticeable growth in loans to small businesses (up 10.12%) and individuals (up 5.7%). Its focus on low-risk loans has helped it maintain steady growth.

Net interest income for the quarter increased by 2.8% from the previous one, amounting to BRL15.6 billion. This is largely attributable to its expanding loan portfolio. According to analysts, the bank’s second-quarter results are a positive sign relating to its recovery. Its growing loan portfolio, improving asset quality, and increasing profitability are a sign of progress. At the same time, it also needs to do some catching up on its ROE and overall performance. This will help it to align its performance with international and domestic peers.

Banco Bradesco S.A. (NYSE:BBD) has also been focusing on digital transformation and cost control which are expected to continue driving improvements for the company. Moreover, while most stocks pay dividends quarterly, semi-annually, or annually, the company is a monthly dividend penny stock. This stock makes monthly dividend payments. Its monthly dividend payment is $0.003 per share, with the next payment scheduled for October 3, 2024.

At the end of the second quarter, 20 hedge funds tracked by Insider Monkey had stakes in Banco Bradesco S.A. (NYSE:BBD), up from 19 in the previous quarter. The largest stakeholder in the company is Fisher Asset Management, with shares worth $142.47 million.