The R40.2 billion (US$7.6 billion) payout is its largest since the miner's 2019 dam collapse which killed almost 300 people, Reuters reported.
"The amount distributed was calculated based on the June 30th, 2021 balance sheet and refers to the anticipation of the profits distribution related to the 2021 fiscal year," Vale said.
The board also approved the cancellation of 152 million shares, leaving its stock divided into 5.13 billion ordinary shares and 12 special-class preferred shares, all without nominal value, the company said.
It had suspended its dividend payments and share buybacks following the 2019 Brumadinho disaster but resumed in the second half of 2020, starting by paying interest on equity of R1.4 per share in August which had been approved in December 2019.
Vale shares closed down 2% in Brazil on Friday as the iron ore price fell towards $100 per tonne.