COPEL: Hold It Until The State No Longer Owns It And Receive Dividends Meanwhile


  • Brazilian utility company COPEL is expected to undergo equity restructuring, potentially leading to the State of Paraná losing control and reducing its equity to around 10%.
  • Dividend distribution will probably decrease until 2024, but the yield will still be satisfactory at current price levels.
  • Despite trading at historically high multiples, COPEL’s share price still has potential upside in the medium term, and long-term operational efficiency could bring higher returns for investors.
  • The restructuring is necessary for COPEL to raise funds to renew three important hydroelectric plant concessions, which are crucial for the company’s future cash flows.
  • Regardless of the scenario, those who own the stock now should stick to them for a couple more years for the almost certain rewards.

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