12 Best Dividend Penny Stocks to Buy According to Hedge Funds

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

Stock Price: $2.09

Number of hedge fund holders: 22

Banco Bradesco S.A. (NYSE:BBD) is one of Brazil’s leading financial institutions, offering a comprehensive range of banking and financial services. The bank has a presence both domestically and internationally and caters to individuals, corporations, and businesses offering a comprehensive suite of banking and financial services.

In its 2025 growth projections, Banco Bradesco S.A. (NYSE:BBD) has anticipated a 4% to 8% expansion in its loan portfolio. Additionally, operating expenses are projected to increase by 5% to 9%. The projections suggest a strategic approach to navigating the current economic landscape and channeling investments toward technology and infrastructure for operational efficiency.

Banco Bradesco S.A. (NYSE:BBD) has a dividend payout ratio that stands at 9.8%, indicating that its dividends are well-supported by earnings. Analysts projections predict earnings of $0.40 per share in the upcoming year, which would allow it to comfortably cover its annual dividend of $0.04. With this, the expected future payout ratio is expected to hit an impressive 10.0%. The strong payout ratio suggests a sustainable dividend policy, providing a steady income stream for shareholders.

Amidst a phase of cautious optimism, the banking industry is experiencing more players opting for sustained growth strategies. Banco Bradesco S.A. (NYSE:BBD) projects an outlook for a measured risk appetite and balancing growth ambitions, as it expects a 9% to 10% growth in its portfolio. The cautious but strategic approach shows the bank’s adaptability to economic headwinds.

The strategic approach and growth projections suggest a positive trajectory for Banco Bradesco S.A. (NYSE:BBD) in the future. Together with sustained dividends and growth potential, the stock might be appealing to investors seeking to invest in emerging market financial institutions.