Monthly Dividend Stock In Focus: Banco Macro

Published on March 13th, 2026 by Bob Ciura

Monthly dividend stocks have instant appeal for many income investors. Stocks that pay their dividends each month offer more frequent payouts than traditional quarterly or semi-annual dividend payers.

For this reason, we created a full list of over 100 monthly dividend stocks.

You can download our full Excel spreadsheet of all monthly dividend stocks (along with metrics that matter like dividend yields and payout ratios) by clicking on the link below:

Monthly Dividend Stock In Focus: Banco Macro

Banco Macro S.A. (BMA) is a monthly dividend stock with a high yield.

This potentially makes the stock more attractive for income investors looking for more frequent dividend payouts.

This article will analyze Banco Macro in greater detail.

Business Overview

Banco Macro S.A. is one of the leading universal banks in Argentina and the largest domestically-owned private bank in the country by branch network.

The bank provides a comprehensive suite of financial products and services to over 6 million retail customers and 212,000 corporate clients.

While it offers a full range of traditional banking services, like savings accounts, credit cards, personal loans, and corporate financings, it distinguishes itself through a strategic focus on underserved regional markets and a dominant presence in Argentina’s interior provinces.

The bank also serves as the exclusive financial agent for four Argentine provinces (Jujuy, Salta, Misiones, and Tucumán), giving it a stable base of public sector deposits and unique access to regional economic ecosystems.

On November 26th, 2025, Banco Macro S.A. reported its Q3 results. The company’s top-line performance showed Net Interest Income of about $517.5 million, an 8% year-over-year decrease despite a 69% expansion in total financing, as higher interest expenses on deposits significantly pressured margins.

This was supported by Net Fee Income of $133.7 million, which nonetheless faced headwinds from a decline in credit card and credit-related fee volumes during the period. However, the bank reported a Net Loss of $25.0 million, a sharp reversal from the net income of about $90.6 million recorded in 3Q 2024.

This resulted in a Loss per ADR of $0.39, primarily caused by a 424% year-over-year surge in loan loss provisions and an increase in administrative expenses linked to personnel bonuses and severance payments.

Growth Prospects

Banco Macro’s last decade really shows a bank trying to survive and adapt through some pretty wild macro conditions.

From 2015 to 2017, things were relatively normal, including stable rates, solid private credit demand, which is probably the best reference point for its “normalized” earning power.

More recently, the numbers are skewed by the huge 2023 EPS spike and the Itaú Argentina acquisition. The 2023 result was mostly a non-cash gain from holding assets that beat inflation during a hyper-devaluation episode.

Now the story is more about consolidation. By buying Itaú’s local business, Macro used a bad macro environment to expand into Buenos Aires and pick up market share when organic growth was basically frozen.

We forecast 5% growth from our earnings power moving forward, because the efficiency and scale benefits from the Itaú Argentina integration could boost results, but that could be offset by a tough macro transition.

Even though the bank is rotating out of low-yield government paper and back into higher-margin private lending, that growth is running into near-term pressure from narrowing net interest margins as rates normalize.

On top of that, FX volatility is still the big wildcard for ADR investors. Because of hyperinflation accounting, even strong profits in pesos can get wiped out in dollar terms if the currency moves the wrong way.

Dividend & Valuation Analysis

Historically, Banco Macro’s valuation de-rated from a 10x average to a “distressed” 3.5x–5.5x range following the 2018crisis and the implementation of hyperinflation accounting. We have set our fair P/E at 5x our EPS power forecast.

BMA stock currently trades for a P/E ratio of 9.5, meaning the stock is significantly overvalued. A declining P/E multiple could reduce annual returns by 12% per year over the next five years.

Offsetting this would be expected EPS growth of 5% as well as the 6.1% current dividend yield. Putting it all together, total expected returns are 0.1% annually over the next five years.

Despite strong local performance and a dominant branch network, aggressive Peso devaluations as well as the complexities of hyperinflation accounting mean that dollar-denominated returns are never guaranteed.

It remains a high-quality institution operating in a high-risk jurisdiction.

Final Thoughts

Banco Macro stands as a high-quality defensive institution with a dominant regional moat and sector-leading capital ratios, yet it remains a high-risk vehicle for US investors due to extreme foreign exchange volatility.

Along with the lack of progressive dividend growth and our assessment that the stock is significantly overvalued at current levels, we rate Banco Macro a Sell.