Braskem SA (BAK) DIvidends Date & History

Key Takeaways

• Braskem S.A. (BAK) currently pays no dividend, with a yield of 0%.
• Last dividend paid in 2022 at $0.67 per share; no payments since amid losses.
• Negative earnings (TTM EPS -$4.77) and free cash flow (-$6.33B) preclude dividends.
• High debt levels and negative equity raise sustainability concerns for future payouts.
• Chemical peers like LYB (6%) and DOW (3.4%) offer yields above industry norms.
• Dividend resumption unlikely without profitability recovery and debt reduction.

Dividend Overview

Braskem S.A. (BAK), a leading Brazilian petrochemical producer, does not currently pay a dividend. The current dividend yield stands at 0%, with no forward dividend declared. The company suspended payouts after its last payment in May 2022, reflecting a shift from a modest dividend profile to prioritizing liquidity amid industry headwinds. Historically irregular, payments were not on a fixed schedule like quarterly but occurred sporadically, often annually or semi-annually when conditions allowed. Braskem is neither a dividend growth stock nor a high-yield play; instead, it resembles cyclical firms in the chemicals sector that withhold distributions during downturns to preserve capital. Investors seeking income from BAK will find none at present, as focus remains on operational stability.

Dividend History and Growth

Braskem's dividend history shows inconsistency typical of petrochemical cyclicality. Notable payments include $2.59 per share in December 2021 and $0.67 in April 2022, but none since. Earlier, dividends varied: $1.02 in 2018, $0.75 in 2017, with yields peaking at over 13% in 2021 before dropping to zero. The company has experienced multiple suspensions, including full-year zeros in 2019 and 2020, alongside cuts like from 2017 highs. No dividend growth streak exists; payouts reflect commodity prices, earnings volatility, and strategic capital allocation. Long-term strategy emphasizes reinvestment over reliable distributions, with no announcements signaling resumption.

Dividend Sustainability and Payout Ratio

With no current dividend, sustainability is not applicable, but historical payout ratios fluctuated wildly, sometimes exceeding 100% or negative amid losses. TTM EPS is -$4.77, with 2025 net loss of $10.96 billion, rendering any payout impossible. Levered free cash flow (ttm) is -$6.33 billion, operating cash flow negative, and total debt exceeds $70 billion against negative equity (-$16.5 billion), yielding a debt/equity ratio over -400%. Current ratio of 0.76 signals liquidity strain. These metrics—high leverage, cash burn, and unprofitability—indicate no near-term dividend capacity. Recovery would require sustained EBITDA growth and deleveraging.

Dividend Compared to Industry Peers

In the chemicals sector, Braskem's 0% yield lags significantly. Peers like LyondellBasell (LYB) offer 6.03% with quarterly $1.20 payments, Dow (DOW) around 3.4% on $1.40 annually, and Westlake (WLK) at 1.8%. Industry averages hover at 2-3.5% for diversified/specialty chemicals, per sector data. BAK's absence stems from Brazil exposure, petrochemical slumps, and balance sheet woes, contrasting peers' resilience via diversified operations and positive cash flows. This positions Braskem as low relative to peers for income seekers.

AI Screener

Tickeron’s AI Screener is an AI-powered stock and ETF discovery tool that helps traders and investors filter the market based on technical patterns, fundamentals, trends, volatility, and AI-driven signals. Users can scan thousands of stocks and ETFs using customizable filters such as industry, market capitalization, technical indicators, price patterns, and performance metrics. It excels at identifying dividend stocks, income-focused investments, trending stocks, breakout candidates, and market opportunities more efficiently than manual screening. Explore the AI Screener today to uncover potential plays in chemicals or beyond.

Is This Stock Attractive for Dividend Investors?

Braskem S.A. (BAK) holds limited appeal for traditional dividend investors due to its zero yield and suspension since 2022. Income seekers prioritizing steady payouts should look elsewhere, as negative earnings, cash burn, and high debt signal prolonged withholding. Conservative or yield-focused investors may avoid BAK amid cyclical volatility in petrochemicals, where commodity swings exacerbate risks. However, speculative growth or value-oriented dividend investors might monitor for turnaround potential—improved spreads, cost cuts, or naphtha alternatives could restore profitability, enabling future initiations. Long-term holders tolerant of Brazil-specific factors like currency and governance issues could benefit if free cash flow turns positive, but current metrics favor capital preservation over income. Balanced portfolios might allocate minimally, awaiting catalysts like debt reduction or sector recovery.

Disclaimer

The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer. Disclaimers and Limitations