As of the 5th of October, iShares MSCI Brazil Capped ETF (EWZ) had a TTM dividend yield of 3.42%. In this article, I hope to answer if it is possible to create a dividend-focused portfolio with only Brazilian ADR that can outperform EWZ’s dividend yield. My investment thesis is simple; analysts are expecting EPS to grow by over 100% in 2022, and dividends should grow too. For those who don’t know, Brazilian law requires corporations to pay out a minimum of 25% of its earnings to shareholders.

Throughout the course of this article, I will consider interest on equity and dividends as just dividends. To the best of my understanding, interest on equity is treated the same as dividends for U.S. tax purposes.

The stocks mentioned in this article are all Brazilian stocks. Investors are exposed to the Brazilian Real, which has devalued significantly over the past several years. During

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