💰Dividend Index (IDIV) today

The Dividend Index (IDIV) groups the B3 stocks that stood out paying shareholder distributions — dividends and interest on own capital — in recent years. It is the reference for the live-off-income strategy with Brazilian stocks.

In practice it is usually dominated by banks, utilities, water and sanitation and insurers: mature companies with predictable cash flow that grow little and therefore distribute much of their profit instead of reinvesting it.

A point that confuses beginners: the index level is not a dividend yield. It is a point scale like any other index — the basket just happens to be built on a who-pays-well criterion.

The portfolio is reviewed every four months. Entry looks at the record of distributions paid: B3 ranks eligible stocks by dividend yield over prior periods and selects the best placed that also meet liquidity requirements.

Each stock's weight combines free-float market value with its own distribution record, capped per asset to avoid excessive concentration.

The method's limitation is worth understanding: the index looks at what was already paid, not at what will be. A company that distributed heavily because of an extraordinary profit enters the index — and may not repeat it next year.

The DIVO11 ETF on B3 tracks the index and is the simplest way to buy the whole basket at once.

The alternative is building a portfolio from the companies listed below. Then the IDIV becomes your equity benchmark — the same role the IFIX plays for real estate fund portfolios.

A tax note: in Brazil, dividends and interest on own capital are taxed differently from each other, and the rules change over time. Confirm the current legislation before building an income strategy.