Itaú Unibanco Holding SANYSE: ITUB

Dividends are one of the best benefits to being a shareholder, but finding a great dividend stock is no easy task. Does Banco Itau (ITUB) have what it takes?

Investors may keep a tab on stocks like PECO, RICK, ITUB, LOW and LRCX, which have lately hiked their dividend payments.

Itaú Unibanco is a solid financial institution in Brazil with high net profit and a large customer base. In Q2, Itaú reported R$10bn in net income, outperforming peers like Banco do Brasil and Nu Holdings. Itaú's strong Q2 earnings solidified its track record, with robust quality indicators and a focus on security and predictability in the banking sector.

An increase in operating revenues and managerial financial margin benefits Itau Unibanco's (ITUB) second-quarter earnings. However, a rise in expenses is a headwind.

With rapid expansion in Latin America, particularly in Brazil, Nu Holdings Ltd. (NU, Financial) has emerged to facilitate access to credit compared to traditional banking alternatives in the region.

Itau Unibanco (ITUB) is well-positioned to gain from its efforts to grow inorganically in Brazil and abroad. However, its elevated cost base is set to hinder the bottom-line growth in the upcoming period.

Itau Unibanco (ITUB) unveils its plan to merge with its subsidiary, Hipercard. This is set to help the company achieve greater synergy, streamline costs and improve efficiency.

Itaú, the biggest bank in Latin America, is adapting to compete with fintechs like Nu Holdings. Despite facing competition, Itaú has over a century of experience in the complex banking operations of Brazil. The company has a low P/E ratio of 7.5x and is expected to deliver strong results and dividends in 2024.

Investors interested in stocks in the Banks - Foreign industry may want to consider KB Financial (KB) or Banco Itau (ITUB). However, determining which of these two stocks offers a better value opportunity at present is the question to consider.