1) What is the current Ownership Structure of M. Dias Branco?
The M. Dias Branco is constituted by the total of 339,000,000 ordinary shares distributed as follows:
- 63% DIBRA – Fundo de Investimentos e Participações
- 12% Others
- 25% Free-float
2) With what frequency are reported the M. Dias Branco’s results?
The Company reports its results quarterly, within 45 days of each trimester end, except the fourth quarter of the fiscal year, or when the Company discloses information to shareholders or third parties, if it happens at an earlier date.
3) What are Interest on Equity and Dividends? What is the difference between them?
Interest on equity and dividends are two different kinds of proceeds, which means benefits distributed from a company to its shareholders. The dividends represent the shareholder right over the company profit for being its partner. By law, the dividend to be distributed by the company at the end of each fiscal year must represent, at least, 25% of its net profit. The interest on equity is based on the profit retained by the company in the previous years, with the incidence of 15% income tax (which do not occurs in the dividend case because it is calculated after the income, social contribution and other taxes).
4) What is the share buyback program?
The share buyback programs occurs when a company believes that the share price is far below the fair value or when it has excess of cash and the amount spent on the buyback would not be so efficient if spent on the company’s growth. When a company announces a share buyback, it generates a positive effect on its quotation (it tends to rise, regarding the supply and demand law), there is an increase on the payment of dividends per share and the company avoids a hostile takeover attempt (in order to its devalued stocks that are cheap and attractive to competitors).
5) How much M. Dias Branco paid in Interest on Equity and Dividends in the last years?
From 2006 to 2018, the Company paid more than R$ 1.37 billion to its shareholders in form of Interest on Equity and Dividends. The historical of dividend payments can be accessed on the section “Dividend Policy and History” of the IR website.
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