XP Inc. dividend ‘pleasant surprise,’ says Citi

Citi calls XP Inc.’s announcement Friday of a cash dividend a “pleasant surprise. While the company has been more verbal regarding distributions, indications were it would prefer share buybacks to cash dividends, the analyst tells investors in a research note. The firm believes the news will be welcomed by the market, as it indicates “sound returns and comfortable cash generation” versus its capital requirements. Citi keeps a Buy rating on XP with a $30 price target.