Dividend Power Score
A single, comprehensive score designed to measure the true strength of a company’s dividend.
This score combines three essential pillars of dividend quality:
Consistency – Measures how reliable the dividend has been over time, focusing on payment history, stability, and the absence of cuts or suspensions.
Payability – Assesses the company’s financial ability to sustain its dividend, taking into account cash flow, earnings coverage, balance sheet strength, and overall financial health.
Growth – Evaluates the long-term growth of both the dividend and the company’s share price, highlighting businesses that consistently increase payouts while creating shareholder value.
Higher scores identify companies that have historically delivered dependable income alongside sustained dividend growth and long-term capital appreciation.
Company Overview
Companhia Energética de Minas Gerais – CEMIG is one of Brazil’s largest integrated electric utility groups, operating primarily in the electric power generation, transmission, and distribution industries, with additional activities in natural gas distribution and related energy services. The company’s core purpose is the production, delivery, and commercialization of electricity and gas to residential, commercial, industrial, and public-sector customers, with a strong emphasis on regulated utility operations that provide stable and recurring revenue.
Founded in 1952 by the government of the State of Minas Gerais, CEMIG was established to support regional industrialization and infrastructure development. Over time, it evolved into a vertically integrated energy group with a diversified asset base, significant renewable generation capacity, and a dominant position in its home state. The State of Minas Gerais remains the controlling shareholder, giving CEMIG a strategic role in public energy policy while also operating as a publicly traded company with international investors.
Business Operations
CEMIG’s operations are structured around three primary business segments: Electricity Distribution, Electricity Generation, and Electricity Transmission, complemented by Natural Gas Distribution and energy commercialization activities. CEMIG Distribuição is responsible for electricity distribution to more than nine million consumer units, primarily within Minas Gerais, generating the majority of the group’s regulated revenue. CEMIG Geração e Transmissão (CEMIG GT) manages power generation assets—largely hydroelectric, with growing wind and solar capacity—and high-voltage transmission lines.
In addition to electricity, Gasmig, a CEMIG subsidiary, operates natural gas distribution networks within Minas Gerais, serving industrial, automotive, and commercial clients. The company also participates in energy trading through regulated and free-market contracts and holds minority interests in several power plants and energy consortia. CEMIG’s asset base includes hydroelectric plants, wind farms, solar facilities, substations, and extensive transmission and distribution infrastructure.
Strategic Position & Investments
CEMIG’s strategic direction focuses on capital discipline, asset optimization, and energy transition, with an emphasis on renewable generation and operational efficiency. The company has pursued divestments of non-core assets and restructured its portfolio to reduce leverage and strengthen its balance sheet, while prioritizing investments with predictable returns under Brazil’s regulated utility framework.
Growth initiatives include expanding renewable energy capacity, particularly wind and solar, modernizing distribution networks through digitalization and automation, and improving service quality indicators. CEMIG also invests selectively in transmission projects and energy commercialization opportunities. Notable subsidiaries and investees include CEMIG GT, CEMIG Distribuição, and Gasmig, as well as participations in renewable energy special-purpose entities. Emerging focus areas include distributed generation integration and grid resilience.
Geographic Footprint
CEMIG’s operations are concentrated primarily in Brazil, with a dominant presence in the State of Minas Gerais, where it serves the majority of electricity consumers and operates extensive generation and transmission assets. Minas Gerais represents the company’s core market and the center of its operational, regulatory, and political influence.
Beyond Minas Gerais, CEMIG holds generation and transmission interests in other Brazilian states and maintains limited international exposure through minority stakes and energy investments outside Brazil. While not a globally diversified utility, the company’s scale within Brazil makes it one of the most influential energy groups in the country, particularly in the Southeast region.
Leadership & Governance
CEMIG operates under a governance structure typical of large, state-controlled Brazilian corporations, combining public-sector oversight with capital market accountability. The State of Minas Gerais is the controlling shareholder, and corporate governance is conducted through a board of directors and executive management team. Leadership emphasizes financial sustainability, regulatory compliance, and alignment with long-term energy transition goals.
Key executives include:
- Reynaldo Passanezi Filho – Chief Executive Officer (CEO)
- Leonardo Gazzola – Chief Financial Officer (CFO) and Investor Relations Officer
- André Tavares – Vice President of Generation and Transmission
- João Pimenta – Vice President of Distribution
- Gustavo Barbosa – Vice President of Governance, Compliance, and Strategy
The leadership’s strategic vision centers on operational excellence, responsible capital allocation, and maintaining CEMIG’s role as a cornerstone of Brazil’s energy infrastructure while adapting to evolving regulatory and environmental requirements.