Monthly Dividend Stock In Focus: GRUPO AVAL ACCIONES Y VALORES

Updated on May 22nd, 2026 by Nathan Parsh

Grupo Aval Acciones y Valores (AVAL) has two appealing investment characteristics:

#1: It is a high-yield stock based on its 4.0% 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.

Grupo Aval released first quarter earnings results on May 13th, 2026.

Source: Investor Presentation

The company generated earnings-per-share of $0.07 for the period, which matched the prior year’s result. Net income declined 7% in Colombian Pesos, but this was offset by appreciation of the value of the peso compared to the U.S. dollar.

The company’s gross loans grew 7.7% year-over-year while credit metrics remained strong and largely unchanged versus prior quarters.

That said, profitability was pressured due to a sudden 200 basis point increase in Colombia’s central bank interest during the first quarter. This increase was an attempt to head off inflation, which caused a significant uptick in funding costs and lowered net interest margin. Grupo Aval’s funding costs are expected to moderate during the second half of 2026, though the slow start for the year could limit the bank’s overall growth .

We expect Grupo Aval’s earnings-per-share to total $0.44 for the year, which would be an 18.9% improvement from the prior year.

Growth Prospects

Grupo Aval is positioned for strong growth in 2026, projecting a high double-digit growth rate. Commercial loans have increased by 7.3% over the last year, while consumer lending rose 4%, supported by healthy credit demand across Colombia and Central America. Mortgages were up 17.9% for the period.

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 be up almost 19% for 2026, rising to $0.44 from $0.37 in 2025. 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

We forecast that Grupo Aval can grow earnings-per-share at an annual rate of 7.0% over the next five years.

Dividend & Valuation Analysis

The company maintains a consistent monthly dividend policy, offering shareholders a steady income stream. In 2025, the company paid a total annual dividend of approximately $0.14 per share, translating to a dividend yield of around 4.3% for that year.

For 2026, we expect that dividends paid will total $0.17, which gives the stock a a current yield of 4.0%. Grupo Aval’s yield makes it competitive with many other names in the financial sector.

The company’s projected dividend payout ratio for 2026 is a very reasonable 39%, 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 September 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.

Shares of Grupo Aval are trading at 9.7 times expected earnings-per-share for the year, which is below our target price-to-earnings ratio of 10.0. Reaching our target P/E by 2031 would add 0.6% to annual returns over this period.

In total, we project that Grupo Aval could offer total annual returns of 10.9% through 2031. This projection stems from an earnings growth rate of 7.0%, the starting yield of 4.0%, and a small tailwind from multiple expansion.

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 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.

And see the resources below for more compelling investment ideas for dividend growth stocks and/or high-yield investment securities.