Updated on May 5th, 2025 by Felix Martinez
Grupo Aval Acciones y Valores (AVAL) has two appealing investment characteristics:
#1: It is a high-yield stock based on its 3.9% dividend yield.
#2: It pays dividends monthly instead of quarterly.
Related: List of monthly dividend stocks
You can download our full Excel spreadsheet of all monthly dividend stocks (along with metrics that matter, like dividend yield and payout ratio) by clicking on the link below:
Thanks to its high yield and its monthly dividend payments, Grupo Aval Acciones y Valores has the potential to be an excellent investment for income investors.
Business Overview
Grupo Aval Acciones y Valores S.A. is a Colombian holding company operating primarily in financial services. It controls some of Colombia and Central America’s largest banking and financial institutions, including Banco de Bogotá, Banco de Occidente, Banco Popular, and Banco AV Villas. AVAL offers a wide range of financial products through these subsidiaries, including commercial and consumer banking, asset management, pension funds, leasing, and insurance services.
AVAL also has significant operations in Central America, owning BAC Credomatic, a major regional financial group. This diversification reduces reliance on the Colombian market and adds geographic stability.
Grupo Aval generates revenue through interest income, fees, commissions, and investment returns. Its business model focuses on stable, long-term cash flow from diversified financial services. Despite macroeconomic pressures and currency risk, AVAL maintains strong market positions in its core regions and benefits from a large customer base.
In 2024, Grupo Aval reported consolidated net income attributable to shareholders of approximately $260 million, or $0.011 per share, representing a 37.4% increase over 2023. The company achieved a Return on Average Equity (ROAE) of 6.0% and a Return on Average Assets (ROAA) of 0.7%. Grupo Aval expanded its financial services footprint by acquiring 40.77% of Casa de Bolsa and 95.4% of Fiduciaria Corficolombiana, which have been rebranded as Aval Casa de Bolsa and Aval Fiduciaria, respectively.
Total gross loans reached approximately $51.1 billion, up 7.3% year-over-year, while total deposits rose to $51.5 billion, marking a 10.4% increase. Aval’s banks gained market share across all lending segments, including consumer and mortgage loans. Loan quality improved, with a 46 basis point decline in delinquency (30+ days past due), and the cost of risk declined to 2.2%, primarily due to a stronger performance in the consumer loan portfolio.
Loan net interest margin (NIM) improved by 29 basis points to 4.3%, while the overall NIM slightly decreased to 3.4% due to lower investment yields. Efficiency also improved, with the cost-to-assets ratio declining to 2.7%. Operating expenses grew modestly by 3.7%, and the cost-to-income ratio was 54.2%. Fee and commission income totaled $918 million, a 6.9% increase, reinforcing Aval’s focus on expanding non-interest revenue streams.
Source: Investor Presentation
Growth Prospects
Grupo Aval is positioned for strong growth in 2025, projecting a 10% increase in total loan volume. Commercial loans are expected to grow by 9%, while retail lending may rise by 11%, supported by healthy credit demand across Colombia and Central America. Management also forecasts a significant boost in profitability, targeting a Return on Average Equity (ROAE) of around 11%, up from 6.0% in 2024.
Recent strategic acquisitions are central to Aval’s growth strategy. The company acquired major stakes in Fiduciaria Corficolombiana and Casa de Bolsa, expanding its asset management and brokerage operations. It also launched Aval Banca de Inversión to strengthen its investment banking division. These moves diversify Aval’s revenue streams and reinforce its competitive position in the broader financial services market.
Earnings growth is expected to continue, with analysts projecting EPS to nearly double in 2025, rising to $0.39 from $0.20 in 2024. Grupo Aval also emphasizes sustainability and financial inclusion, which may support long-term customer growth and regulatory alignment. With a diversified portfolio, expanding services, and improving efficiency, Aval is well-positioned for sustained earnings and market share gains.
Source: Investor Presentation
Dividend Analysis
The company maintains a consistent monthly dividend policy, offering shareholders a steady income stream. In 2024, the company paid a total annual dividend of approximately $0.11 per share, translating to a dividend yield of around 3.9% based on current share prices. This yields Grupo Aval competitive positions within the financial sector, aligning with industry averages.
The company’s dividend payout ratio is approximately 44.8%, indicating that less than half of its earnings are distributed as dividends. This conservative payout approach suggests a balanced strategy, allowing Grupo Aval to reward shareholders while retaining sufficient earnings for reinvestment and growth initiatives.
Looking ahead, Grupo Aval has announced plans to continue its monthly dividend payments through March 2026, with ex-dividend dates scheduled accordingly. This ongoing commitment to regular dividends underscores the company’s confidence in its financial stability and dedication to providing consistent returns to investors.
Final Thoughts
Grupo Aval is a stable, income-generating investment with exposure to Colombia and Central America’s growing financial markets. The company offers consistent monthly dividends, a nearly 4% yield, and a conservative payout ratio, making it appealing for dividend-focused investors. Its recent acquisitions and improving profitability also support long-term growth.
This stock is best suited for investors seeking international diversification and willing to accept emerging market risks like currency volatility and political uncertainty. For those with a long-term outlook, Grupo Aval offers a balanced mix of income, stability, and modest upside potential.
Don’t miss the resources below for more monthly dividend stock investing research.
- The Monthly Dividend Stocks List
- 20 Highest Yielding Monthly Dividend Stocks
- 10 Cheapest Monthly Dividend Stocks
- 10 Safest Monthly Dividend Stocks
- 3 Top ‘Hold Forever’ Monthly Dividend Stocks
And see the resources below for more compelling investment ideas for dividend growth stocks and/or high-yield investment securities.
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- High Dividend Stocks: 4%+ dividend yields
- Blue Chip Stock: Kings, Aristocrats, and Achievers
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- BDCs: List of BDCs and more