Four Stocks That Outran Brazil's CDI Every Year Since 2022

A study by Brazilian financial analysis firm Elos Ayta has put a number on the difficulty equity investors face in a country with persistently high interest rates: out of 347 stocks listed on the B3 exchange with sufficient liquidity, only four managed to beat the CDI – Brazil’s key fixed-income benchmark – in every annual window over the past five years.

The companies that pulled off this feat are sanitation utility Sabesp, electric power companies Copel and Cemig, and telecom operator TIM. The analysis compared the 12-month price return of each stock against the CDI for periods ending on July 27 of 2022, 2023, 2024, 2025 and 2026. Any stock that fell short in a single window was excluded.

The broader market fared little better. The Ibovespa, Brazil’s main equity index, outperformed the CDI in only two of those five windows – the ones ending in 2023 and 2026. The findings reinforce a consensus view: when the Selic rate is high, the CDI offers attractive, low-volatility returns, raising the bar for what counts as a successful stock investment.

The victors share a common thread: they operate in sectors with predictable revenue streams, concession-based or regulated business models, and relatively stable cash flows even when economic activity softens. While the study looked exclusively at price appreciation – ignoring dividends – the resilience of these names suggests that consistency, rather than short-term market swings, drove their outperformance.

Inside the Resilience of Sabesp, Copel, Cemig and TIM

The High-Rate Filter: Why So Few Stocks Made the Cut

Brazil’s central bank kept the Selic at elevated levels for most of the period under review. That turbocharged CDI returns, which are tightly linked to the overnight interbank rate, while equities faced headwinds from tighter financial conditions and investor preference for safety. The CDI delivered double-digit annual returns without the volatility of stocks, making it a tough benchmark to beat.

For a stock to surpass the CDI every year, it needed a mix of earnings growth, operational discipline and investor confidence that could overcome the gravitational pull of juicy fixed-income yields. The fact that only four out of 347 companies achieved this underscores how rare such consistency is.

A Defensive Recipe: Utilities and Telecoms Prove Their Worth

Two of the four winners are electric utilities (Copel and Cemig), one is a sanitation company (Sabesp), and the fourth is a mobile operator (TIM). These sectors are known for regulated or concession-based revenues that don’t swing wildly with the economic cycle. During times of high interest rates and economic uncertainty, investors often reward businesses with visible cash flows and limited direct exposure to consumer discretionary spending or industrial demand.

While the study only considered share-price changes, it’s worth noting that all four companies also have a history of distributing dividends. That additional income, not captured in the analysis, likely made their total returns to investors even more compelling. The consistency of their price performance suggests that the market was steadily repricing these names upward, perhaps in recognition of improved corporate governance, operational efficiencies, and a flight to defensive assets.

It is also possible that specific corporate events contributed. For example, Sabesp underwent a privatization process led by the São Paulo state government, while Copel and Cemig have long been targeted by market participants betting on efficiency gains and potential dividend payouts. Regardless of the precise drivers, the data argues that Brazilian equities can beat fixed income on a consistent basis—but only the most resilient and predictable businesses are likely to do so.

What the CDI-Beating Quartet Means for Investors

  • The four stocks that cleared the CDI hurdle in every window—Sabesp, Copel, Cemig, and TIM—demonstrated that defensive sectors with regulated cash flows can deliver superior risk-adjusted returns even in a high-rate environment. Investors may want to examine their financial reports, dividend policies, and corporate governance to understand whether those qualities remain in place going forward.
  • The study highlights a broader challenge: when the Selic stays elevated, only a tiny fraction of stocks outpace fixed-income benchmarks. Investors building equity-heavy portfolios in Brazil should consider weighting toward utilities, sanitation, and telecoms that share the characteristics of the four winners—cash flow visibility, low cyclicality, and disciplined cost management.
  • Because the analysis used only price returns, investors who are willing to reinvest dividends may find that the gap in total return between these stocks and the CDI was even wider. It may be worth checking total return data for these companies as a more complete picture of their historical outperformance.