Credi (BAP) DIvidends Date & History

Key Takeaways

• Credicorp offers a forward dividend yield of approximately 4.3%, supported by a recent annual dividend of $11.02 per share in 2025.
• The company's payout ratio stands at around 45-47%, indicating solid earnings coverage for dividend sustainability.
• Dividends have shown strong growth, with per-share payouts rising from $3.99 in 2022 to over $11 in 2025, reflecting a multi-year upward trend.
• A policy targets at least 25% of net profits as cash dividends, recently exceeded with substantial distributions from 2025 earnings.
• Upcoming ex-dividend date is May 18, 2026, with payment on June 12, 2026, providing near-term income opportunity.
• Financial health supports ongoing payments, bolstered by dominant market position in Peru's banking sector.

Dividend Overview

Credicorp Ltd. (BAP), Peru's leading financial services holding company, maintains a dividend policy committing to at least 25% of consolidated net profits distributed as cash dividends annually. This approach balances shareholder returns with reinvestment needs. The forward annual dividend is $14.26 per share, yielding about 4.3% at recent prices, up from the trailing 3.3% based on 2025's $11.02 payout (S/40 per share at 3.631 PEN/USD). Payments occur irregularly, often annually with occasional specials, as seen in a September 2024 supplemental of $2.92. This profile positions BAP as a high-yield contender among emerging market banks, appealing to income investors seeking growth alongside payouts rather than a strict dividend aristocrat.

Dividend History and Growth

Credicorp has paid dividends consistently since 1996, evolving from modest $0.10-$0.50 U.S. payouts in the early 2000s to substantial amounts today. Recent history highlights growth: $3.99 (2022), $6.77 (2023), $9.29 (2024 annual), plus $2.92 special, and $11.02 (2025). This reflects a robust compound annual growth rate (CAGR) exceeding 17% over three years in some metrics, driven by strong earnings from subsidiaries like Banco de Crédito del Perú (BCP). The board revises policy yearly, prioritizing subsidiary dividends and financial conditions, resulting in variable but increasing payments without cuts in recent decades.

Dividend Sustainability and Payout Ratio

Credicorp's dividend appears sustainable, with a payout ratio of 45-47% of trailing earnings (EPS TTM $24.49), well below 75% thresholds for caution. This leaves ample retained earnings for growth. Return on equity (ROE) of 19% underscores profitability, primarily from universal banking (70%+ of revenue). While trailing operating cash flow shows negative figures (-$8.64B TTM, typical for banks due to loan/deposit dynamics), earnings coverage is strong. Debt levels are manageable post-2025 bond repayment, with double leverage around 100% and no new holding-level debt planned. Bad loan allowances (4.6% of loans) and PEN30.8B in cash equivalents further support ongoing distributions from 2025's S/6.93B net income.

Dividend Compared to Industry Peers

Credicorp's 4.3% forward yield is competitive in Latin American banking. Peers like ITUB (Itaú Unibanco, ~1-6% varying by source, monthly payer) offer lower consistent yields, while BSAC (Banco Santander Chile, ~3.7-5%) and BCH (Banco de Chile, ~4.3-4.6%) align closely with annual structures. Local rival BBVA Peru yields ~5.3%. BAP's edge lies in Peru-focused dominance (34% loans/deposits market share) and higher ROE versus regional averages, though yields trail some higher-payout Chilean/Peruvian peers amid growth focus.

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Is This Stock Attractive for Dividend Investors?

Credicorp suits income-oriented investors comfortable with emerging market exposure, particularly those valuing yield above 4% backed by a leading Peruvian franchise. Its policy-driven payouts, recent growth from $4 to $11+ per share, and conservative 45% payout ratio appeal to those seeking total returns blending dividends and capital appreciation. Long-term holders may appreciate the 17%+ short-term CAGR and ROE exceeding 19%, signaling potential for continued increases amid regional expansion (e.g., Chile via Tenpo). However, variable frequency and sensitivity to Peru's economy, commodity cycles, or currency fluctuations (PEN/USD) suit balanced portfolios over conservative yield-chasers preferring U.S. dividend kings. High sustainability metrics support appeal for growth-and-income strategies, though volatility warrants diversification.

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