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
StoneCo Ltd. is a Brazilian financial technology company that provides technology-driven financial services and software solutions primarily to small and medium-sized businesses (SMBs). The company operates within the financial services, payments, and software industries, with a focus on merchant acquiring, digital banking, and business management tools. StoneCo generates revenue mainly through transaction processing fees, financial services such as credit, and subscriptions for software solutions tailored to merchants.
Founded in 2012, StoneCo was created to challenge Brazil’s historically concentrated payments and banking markets by offering transparent pricing, integrated technology, and localized customer support. The company is known for its relationship-based sales model and in-house service teams, which it positions as a differentiator against large incumbent banks and global payment processors. StoneCo completed its initial public offering in 2018 and has since expanded its platform to include banking, credit, and enterprise software solutions.
Business Operations
StoneCo’s operations are organized around integrated financial and software solutions for merchants. Its core business lines include Merchant Acquiring and Payment Solutions, Financial Services, and Software Solutions. The acquiring segment provides point-of-sale devices, payment processing for credit and debit cards, and digital payment methods, while financial services include Stone Account digital banking, working capital loans, and other credit products. Software offerings, primarily delivered through Linx, support retail management, enterprise resource planning, and omnichannel commerce.
The company operates almost exclusively in Brazil, where it maintains its own technology infrastructure, risk management systems, and sales and support teams. Key subsidiaries include Stone Instituição de Pagamento S.A., which supports regulated payment activities, and Linx S.A., a major retail software provider acquired to strengthen StoneCo’s ecosystem. Revenue is generated through transaction volumes, financial margins on credit products, and recurring software subscriptions.
Strategic Position & Investments
StoneCo’s strategy centers on building an integrated ecosystem that combines payments, banking, credit, and software to increase merchant engagement and lifetime value. Growth initiatives have focused on cross-selling financial services to its acquiring base, expanding credit offerings with tighter underwriting discipline, and improving operational efficiency following a period of rapid expansion and subsequent restructuring.
A key strategic investment was the acquisition of Linx S.A., which positioned StoneCo as a significant provider of retail management software in Brazil and enabled deeper integration between payments and commerce software. The company has also invested in improving its credit risk models and scaling digital banking capabilities. StoneCo’s strategic direction emphasizes sustainable growth, profitability, and disciplined capital allocation rather than aggressive geographic expansion.
Geographic Footprint
StoneCo’s operations are concentrated in Brazil, which represents the vast majority of its revenue, customer base, and workforce. The company is headquartered in São Paulo, Brazil’s primary financial and commercial center, and maintains regional offices and service hubs across multiple Brazilian states to support local merchants.
While StoneCo is listed in the United States, it does not have material operating businesses outside Brazil. Its international presence is primarily related to corporate structure, capital markets access, and technology partnerships rather than direct merchant operations or foreign market expansion.
Leadership & Governance
StoneCo was founded by a group of Brazilian entrepreneurs with backgrounds in finance and technology, including Thiago Piau, Eduardo Pontes, and Marcos Molina, who helped shape the company’s merchant-centric culture and long-term strategic vision. The leadership philosophy emphasizes decentralization, local decision-making, and close relationships with customers.
Key members of the current leadership team include:
- Thiago Piau – Chief Executive Officer
- Eduardo Pontes – Chief Strategy Officer
- Marcelo Ramos – Chief Financial Officer
- Afonso Arinos – Chief Investor Relations Officer
- Daniel Salles – Chief Technology Officer
The company is governed by a board that includes founders and independent directors, with oversight focused on risk management, regulatory compliance, and long-term value creation.