Monthly Dividend Stock In Focus: Telefônica Brasil

Printed on March twenty fifth, 2026 by Bob Ciura

Month-to-month dividend shares have immediate enchantment for a lot of revenue buyers. Shares that pay their dividends every month supply extra frequent payouts than conventional quarterly or semi-annual dividend payers.

For that reason, we created a full listing of over 100 month-to-month dividend shares.

You may obtain our full Excel spreadsheet of all month-to-month dividend shares (together with metrics that matter like dividend yields and payout ratios) by clicking on the hyperlink under:

Telefônica Brasil S.A. (VIV) is a month-to-month dividend inventory with a excessive yield.

This probably makes the inventory extra engaging for revenue buyers in search of extra frequent dividend payouts.

This text will analyze Telefônica Brasil S.A. in higher element.

Enterprise Overview

Telefônica Brasil S.A., branded as Vivo, is the most important telecommunications operator in Brazil, serving over 100 million cellular and stuck accesses with cellular, fixed-line, broadband, and fiber providers throughout the nation.

The corporate holds a number one place in Brazil’s cellular market and operates one of many nation’s largest fiber networks.

Income is primarily pushed by wi-fi and information providers as clients proceed emigrate towards higher-speed connectivity and digital options.

On October thirty first, 2025, Telefônica Brasil posted its Q3 outcomes. The corporate generated complete income of $2.81 billion, up 6.5% 12 months over 12 months.

Progress was pushed by continued power in postpaid cellular, FTTH, and digital providers, with cellular service income up 5.5% and FTTH income up 10.6%.

EBITDA elevated 9.0% 12 months over 12 months to $1.22 billion, with the EBITDA margin increasing to 43.4%, reflecting working leverage regardless of greater personnel and infrastructure prices.

Internet revenue grew 13.3% 12 months over 12 months to $357 million, whereas EPS elevated 15.6% 12 months over 12 months to $0.11. For FY2025, we count on EPS of $0.70.

Progress Prospects

Over the previous decade, Telefônica Brasil’s earnings have been formed by three fundamental forces. Particularly, the corporate’s outcomes have been affected by the shift from legacy voice to information and fiber, massive community funding cycles, and the Brazilian macro and forex atmosphere.

Within the mid-2010s, EPS progress by means of 2017 and into 2018 was pushed by increasing cellular and information revenues, improved service pricing and broader adoption of postpaid and broadband merchandise as legacy voice declined and community investments started to repay, driving higher profitability.

After a weaker 2019–2020 interval marked by softer client spending and the pandemic, which slowed roaming, gear gross sales and put stress on margins whereas CapEx stayed elevated, outcomes started to get better in 2021–2022 as demand for high-speed connectivity and enterprise information providers strengthened.

In 2023, stronger local-currency internet revenue, pushed by continued cellular service progress, fiber enlargement and secure margins, lifted earnings, and 2024 noticed EPS stay agency as service income progress persevered alongside disciplined value management, whilst aggressive pressures and funding in 5G and FTTH networks weighed on internet margins.

A part of the year-to-year motion within the above U.S.-dollar EPS historical past additionally displays the numerous depreciation of the Brazilian actual relative to the greenback over this era, which elevated EPS volatility when translated into U.S. {dollars} even when the underlying Brazilian actual outcomes grew extra steadily.

We forecast 0% progress in EPS and DPS as they will transfer both means as a result of tug-of-war between regular cellular and fiber progress and ongoing competitors, heavy funding and prices, and swings within the Brazilian actual versus the U.S. greenback, which may materially have an effect on reported outcomes for U.S. buyers..

Dividend & Valuation Evaluation

Telefônica Brasil has typically traded at a low-teens earnings a number of, which is typical for a big, mature telecom with secure money flows however restricted structural progress.

Right now, shares commerce at about 19x our anticipated EPS energy, doubtless exhibiting that buyers consider earnings visibility has improved at the moment following a heavy section of investing.

Nonetheless, to account for the dearth of total anticipated progress from a legacy dinosaur enterprise in addition to a “Brazil low cost” we now have set our honest P/E at 13x.

VIV inventory is at present buying and selling at a P/E ratio of twenty-two.4, which implies the inventory seems to be considerably overvalued. A declining valuation a number of might cut back annual returns by -10.3% over the subsequent 5 years.

As well as, we count on no EPS progress, and VIV is at present yielding 3.2%. Placing all of it collectively, annual returns are anticipated to succeed in -5.8% per 12 months.

Remaining Ideas

Telefônica Brasil is a secure, cash-generative market chief with robust aggressive positioning, however restricted progress and significant forex and valuation headwind dangers imply the inventory could wrestle to generate optimistic returns over the medium time period.

For that reason, and the dearth of divided progress, we charge the inventory a Promote.