On July 3, 2009, the Board of Directors of CBD approved the adoption of a new dividend policy by the Company, which consists of quarterly payment of interim dividends upon approval by the Board of Directors ad referendum the Annual Shareholders‘ Meeting, pursuant to Paragraph 3, Article 35, of the Company’s By-laws. Our shareholders have the right to receive obligatory dividends annually the equivalent of 25% of our adjusted net income, which is the net income adjusted for: the amounts destined for the legal profit reserve; the reserve for contingencies and additions such as the reversal in reserves of contingencies made in previous financial periods; amounts destined for the statutory reserve, if there is one; of the realizable profit reserve; the accumulated profit reserve; and reversals of amounts destined for the realizable profit reserve, when realized and not absorbed by losses. The mandatory dividend payment can be limited to the net income in a financial period reported in a fiscal year, as long as the difference is registered in the realizable profit reserve.


Preference shares have the right to: priority in receiving a minimum annual non-cumulative preferential dividend of R$0.075 per share; with priority to capital reimbursement, with no premium, in the event of liquidation; participation in equivalent terms as ordinary shares in the distribution of bonus share issues, results of the capitalization of accumulated profit reserves; and the receipt of obligatory dividend of more than 10% of the dividend paid to each ordinary shareholder, including, for the purposes of this calculation, the sum of the total dividend paid to preference shares, the aforementioned non-cumulative amount paid as minimum dividends to preference shares. read more. Read More