Top Dividend Stocks in South Africa 2025 for Passive Income

By / October 23, 2025

If your goal is to turn the Johannesburg Stock Exchange (JSE) into a steady income stream, 2025 offers a healthy […]

Top Dividend Stocks in South Africa 2025 for Passive Income

If your goal is to turn the Johannesburg Stock Exchange (JSE) into a steady income stream, 2025 offers a healthy line-up of dependable dividend payers. This guide explains how to choose dividend shares, how South African dividend taxes work, and which JSE-listed companies currently stand out for reliable cash distributions. It also includes notes on risk, diversification, and how to combine individual shares with dividend-focused ETFs to build a resilient passive-income plan.

How we selected these dividend shares

To keep this list practical for a South African income investor in 2025, selections emphasise:

  • Consistency and visibility of dividends (clear policies and multi-year track records).
  • Reasonable payout discipline (especially for banks and insurers that target sustainable payout ranges).
  • Sector diversification (telecoms, financials, consumer staples, resources, property).
  • Recently declared cash distributions for 2025 (finals, interims, or quarterly instalments).

Important: Dividend yields move with share prices and are therefore not fixed. Use declared rand-per-share figures and each company’s policy as your anchor, not yesterday’s quoted yield.

Dividend tax and wrappers: the essentials for 2025

  • Dividends Tax (DWT) is 20% for most JSE dividends paid to individuals. Your broker usually withholds this automatically.
  • REIT distributions are not subject to DWT; they are taxed as ordinary income at your marginal rate because REITs deduct qualifying distributions before company tax. Plan position sizes accordingly.
  • Tax-free investment accounts (TFSA) can shelter local dividends from tax, but you are limited to R36,000 per tax year (lifetime R500,000). Consider using this allowance for high-yield equity or ETF exposures.

The stand-out dividend payers on the JSE in 2025

Below are concise, investor-centred profiles. The order is by category, not by ranking.

1) British American Tobacco (JSE: BTI) — global cash machine, paid quarterly

Why income investors like it: A very long history of cash returns and a quarterly payment schedule that smooths income through the year.
2025 facts: The board set an interim dividend for the 2024 year, payable in four quarterly instalments in May 2025, August 2025, November 2025 and February 2026.
Risks to watch: Regulatory headwinds in nicotine markets and foreign-exchange swings for rand investors.
Verdict: A cornerstone payer for rand-hedge income.

2) Vodacom (JSE: VOD) — South Africa’s consistency leader in telecoms

Why income investors like it: A policy of paying at least 75% of headline earnings with twice-yearly dividends.
2025 facts: Final dividend declared for the year to March 2025, lifting the full-year dividend to 620 cents per share.
Risks to watch: Capital-expenditure cycles, spectrum costs, and competition in key markets.
Verdict: A reliable domestic cash payer with clear guidance.

3) MTN Group (JSE: MTN) — improving guidance, still a premium yielder

Why income investors like it: A return to clearer guidance after a volatile period in some markets.
2025 facts: FY24 dividend of 345 cents per share (paid April 2025) and raised 2025 dividend guidance to 370 cents.
Risks to watch: Currency and regulatory risk in certain African markets.
Verdict: Higher risk than Vodacom but with attractive guided cash returns if execution holds.

4) Standard Bank (JSE: SBK) — big-bank backbone

Why income investors like it: Strong capital generation and steady payout discipline.
2025 facts: Interim dividend around the mid-800 cents per share level for 1H25, consistent with a 50%–60% payout policy.
Risks to watch: Credit cycle, sovereign risk, and South African growth constraints.
Verdict: A flagship for bank income exposure.

5) Absa Group (JSE: ABG) — healthy cover with growth momentum

Why income investors like it: Re-based, transparent payouts and a broad Africa footprint.
2025 facts: Interim dividend in the high-700 cents per share range, with guidance to maintain roughly a 55% payout ratio.
Risks to watch: Credit impairments and domestic macro shocks.
Verdict: A well-covered bank dividend with a clear policy.

6) Nedbank (JSE: NED) — robust cover and rising stream

Why income investors like it: Historically conservative dividend cover of roughly 1.75x–2.25x and improving earnings progression.
2025 facts: Interim dividend above R10 per share at an indicative mid-50s payout ratio; policy remains within the board’s cover range.
Risks to watch: South African growth, energy disruptions affecting clients, and the credit cycle.
Verdict: A high-quality, well-covered bank distribution.

7) FirstRand (JSE: FSR) — efficient compounder with steady payouts

Why income investors like it: Capital-light banking model and consistent distributions.
2025 facts: Market guidance and timetables imply a mid-single-digit dividend yield with payout around the 60% area, in line with history.
Risks to watch: Margin compression in retail lending and competitive dynamics.
Verdict: Lower nominal yield than some peers, but stable and well covered.

8) OUTsurance Group (JSE: OUT) — insurer with rising ordinary dividend and specials

Why income investors like it: Cash-generative short-term insurance with management willing to pay specials when appropriate.
2025 facts: Final ordinary dividend of roughly 149 cents per share, full-year ordinary dividend about 238 cents (strong year-on-year growth), plus a special dividend in the low-30s cents.
Risks to watch: Catastrophe claims volatility and scaling in newer markets.
Verdict: A growing income stream with the potential for bonus cash.

9) AVI Limited (JSE: AVI) — consumer staple with healthy cash returns

Why income investors like it: Household brands, disciplined cash conversion, and shareholder-friendly distributions.
2025 facts: Final dividend just over 400 cents per share, total ordinary dividend around 626 cents for the year.
Risks to watch: Consumer pressure and input-cost volatility.
Verdict: One of the stronger South African dividend stories in staples.

10) Tiger Brands (JSE: TBS) — ordinary dividend plus 2025 special

Why income investors like it: Resilient staple categories and opportunistic capital returns.
2025 facts: Interim ordinary dividend in the low-400 cents and a special dividend above 1,200 cents announced in mid-2025. Specials are not guaranteed every year, but they materially boosted cash to shareholders this year.
Risks to watch: Execution on portfolio reshaping and commodity-price swings.
Verdict: Solid core distribution with occasional windfalls.

11) Kumba Iron Ore (JSE: KIO) — cyclical but generous at the right point in the cycle

Why income investors like it: High free-cash conversion in strong iron-ore markets.
2025 facts: Interim dividend above 1,600 cents per share declared in late July 2025.
Risks to watch: Iron-ore prices and logistics constraints.
Verdict: A powerful income contributor, but cyclical; size exposure accordingly.

12) Exxaro Resources (JSE: EXX) — coal-weighted cash generator with specials potential

Why income investors like it: Framework for returning surplus cash and a record of both ordinary and special payouts when conditions permit.
2025 facts: Interim dividend in the mid-800 cents per share region payable around early October 2025.
Risks to watch: Thermal coal price volatility and ESG headwinds.
Verdict: Big cheques in the up-cycle, but expect variability.

13) Growthpoint (JSE: GRT) — the REIT bellwether

Why income investors like it: Scale, diversified property base, and consistent semi-annual distributions.
2025 facts: FY25 dividend per share around 124 cents (up year-on-year), including an H2 distribution of roughly 63 cents. Remember, REIT distributions are taxed as income, not via DWT.
Risks to watch: Interest-rate sensitivity and office-market softness.
Verdict: Foundational REIT exposure for income, but consider holding inside the right tax wrapper.

14) NEPI Rockcastle (JSE: NRP) — CEE retail REIT paying euro-linked amounts

Why income investors like it: Quality shopping-centre portfolio, semi-annual distributions, and rand-hedge characteristics.
2025 facts: H1 2025 dividend around 27.95 euro cents per share with a c. 90% payout ratio; market yields near the high single digits.
Risks to watch: Foreign-exchange movements and Central and Eastern Europe macro factors.
Verdict: A higher-yield REIT with offshore exposure.

15) Redefine Properties (JSE: RDF) — improving distributions off a lower base

Why income investors like it: Simpler portfolio, pragmatic capital allocation, and a focus on distributable income growth.
2025 facts: Cash dividend declared for the six months to February 2025, with guidance towards ongoing payments as the turnaround progresses.
Risks to watch: South African property-market headwinds and balance-sheet discipline.
Verdict: Recovery income play; position size conservatively.

16) BHP Group (JSE: BHG) and Glencore (JSE: GLN) — dual-listed global miners for diversified cash

Why income investors like them: Very large, diversified commodity cash flows and explicit distribution frameworks.
2025 facts: BHP paid an interim dividend of about US$0.50 and declared a final of about US$0.60; Glencore set an aggregate 2025 distribution of US$0.10 split across two tranches and supplemented by buybacks.
Risks to watch: Global commodity cycles and foreign exchange.
Verdict: Useful for rand-hedge income and diversification beyond South Africa.

Quick reference: 2025 cash declarations at a glance

CompanyTicker2025 cash declared / noted*Frequency / policy (short)
British American TobaccoBTIFour quarterly instalments across May, Aug, Nov 2025 and Feb 2026Quarterly; progressive cash returns
VodacomVODFull-year dividend about 620cps (final around 335cps)Semi-annual; ≥75% of headline earnings
MTNMTNFY24 345cps; 2025 guidance 370cpsSemi-annual; guided floor
Standard BankSBKc. 817cps interim; payout c. 50%–60%Semi-annual; policy driven
AbsaABGc. 785cps interim; payout c. 55%Semi-annual
NedbankNEDc. 1,028cps interim; payout c. 57%Semi-annual; 1.75x–2.25x cover
OUTsuranceOUTc. 149cps final; c. 238cps full-year + c. 33c specialSemi-annual + specials
AVIAVIc. 406cps final; c. 626cps full-yearSemi-annual
Tiger BrandsTBSc. 415cps interim + c. 1,216cps specialSemi-annual + 2025 special
Kumba Iron OreKIOc. 1,660cps interimSemi-annual, cyclical
ExxaroEXXc. 843cps interimSemi-annual, cyclical
GrowthpointGRTc. 124.3cps FY25 (H2 c. 63.3cps)Semi-annual; REIT income (taxed as ordinary income)
NEPI RockcastleNRPc. 27.95 euro cents H1 2025Semi-annual; REIT income
BHP GroupBHGUS$0.50 interim; US$0.60 finalSemi-annual per results cycle
GlencoreGLNUS$0.10 aggregate 2025 distribution, plus buybacksTwo tranches + buybacks

* Table reflects company declarations and guidance published in 2025 (and, for BTI, the quarterly timetable running into early 2026). Figures are rounded for readability.

How to evaluate dividend sustainability (a quick checklist)

  1. Payout ratio and dividend cover
    For banks and insurers, a payout in the 50%–60% range with earnings momentum is usually healthier than a very high payout that risks cuts in a downturn.
  2. Balance sheet strength
    Look for credible capital ratios in banks, conservative gearing in industrials, and loan-to-value prudence in REITs.
  3. Cash conversion
    Earnings should turn into cash. Track multi-year operating cash flow versus net profit, not just one year.
  4. Cyclicality of earnings
    Miners and energy companies can be generous in up-cycles but should be sized as satellites rather than core income anchors.
  5. Policy transparency
    Clear guidance on payout frameworks reduces surprises and helps you plan your cash-flow ladder.

Building a passive-income portfolio in 2025

1) Diversify across payers and cycles
Blend defensive cash engines (BTI, VOD, AVI), financials (SBK, ABG, NED, FSR), REITs (GRT, NRP) and cyclicals (KIO, EXX) so that when commodity distributions soften, staples and banks carry the load.

An illustrative target mix (example, not advice):

  • 25% Banks and insurers (SBK, ABG, NED, FSR, OUT)
  • 20% Telecoms (VOD, MTN)
  • 15% Consumer staples (AVI, TBS)
  • 15% REITs (GRT, NRP)*
  • 15% Diversified or global miners (BHG, GLN)
  • 10% Opportunistic cyclicals (KIO, EXX)

* Remember, REIT cash is taxed as income at your marginal rate rather than DWT. Consider placing REITs inside a TFSA where appropriate and within your annual limits.

2) Ladder the payment calendar
Quarterly BTI plus semi-annual payers gives a smoother income pattern across the year. Map expected record and payment dates in a simple spreadsheet based on company timetables and your broker’s value-date conventions.

3) Focus on coverage and policy
A payout ratio that sits within stated policy ranges (for example about 55%–60% for banks) tends to be more durable through cycles than a headline yield that relies on peak commodity prices.

4) Reinvest strategically
Outside your TFSA, you will usually receive JSE dividends net of 20% DWT, which reduces your reinvestable cash. Automate dividend reinvestment in lower-volatility counters or accumulate for periodic buys to keep transaction costs efficient.

5) Review once or twice per year
Rebalance after full-year and interim results seasons. For cyclicals, be willing to trim exposure as payouts normalise when commodity prices cool.

A simple income-target example

Suppose you wish to target R5,000 per month in average pre-tax dividend income (R60,000 per year). If your blended forward yield across a diversified basket is 6%, you would need approximately R1,000,000 invested. If your blend is closer to 8%, you would need about R750,000. These are illustrative and assume no dividend cuts. The actual rand you receive will vary with share prices, company performance, and tax treatment (especially for REITs).

Dividend ETFs for simplicity

If you prefer a one-ticket approach to dividend income:

  • Satrix Dividend Plus ETF (STXDIV) tracks the FTSE/JSE Dividend Plus Index (J259) and pays out distributions (currently quarterly). It concentrates on high-yield South African companies.
  • 10X S&P Global Dividend Aristocrats ETF (GLODIV) provides global dividend exposure and a natural rand hedge by tracking the S&P Global Dividend Aristocrats.

ETFs will not match the very highest single-stock yields, but they diversify idiosyncratic risk and simplify the administration of multiple pay dates.

Risks and safeguards

  • Interest-rate sensitivity: REITs and rate-sensitive sectors can see distributions squeezed when funding costs rise.
  • Commodity cycles: Kumba and Exxaro can swing widely; treat them as satellite income positions, not the core of your passive-income plan.
  • Regulation: Tobacco and telecoms face policy and spectrum risks that can affect cash flows.
  • Foreign exchange exposure: Dual-listed payers (BTI, BHG, GLN, NRP) are useful rand hedges, but currency moves can alter the rand value of dividends. Dividend circulars often set exchange-rate conversion dates, so read them each time.

Practical tips to boost your dividend outcome

  1. Use your TFSA first for South African dividend assets to avoid the DWT drag, prioritising your highest yielders within your risk comfort. Respect the R36,000 annual limit and do not exceed it.
  2. Prefer payers with explicit policies and published cover targets (banks, insurers, telecoms). This reduces nasty surprises.
  3. Do not chase yield alone. A sustainable 5%–7% that grows is better than a brittle 12% that vanishes in the next downturn.
  4. Keep an eye on ex-dividend dates if you are laddering cash-flows. Your entitlement depends on holding before the last day to trade cum-dividend.
  5. Reinvest at least part of your income to offset inflation and fees, even if your prime goal is cash today.

Frequently asked questions

Are dividends guaranteed?
No. Boards can change or suspend dividends at any time. That is why payout policies and coverage matter as much as the current yield.

Is it better to buy a single high yielder or a basket?
For most investors, a basket across sectors is better. It smooths cash-flows and reduces the risk that one company’s cut damages your plan.

How are REIT distributions taxed?
As ordinary income, not via DWT. This means high-bracket investors may prefer to hold REITs in a TFSA or manage position sizes accordingly.

Do global payers on the JSE avoid South African taxes?
Dividends from many dual-listed counters remain subject to South African withholding when paid through the local register; however, the amounts are often declared in foreign currency and converted at set dates. Always read the dividend circular.

Key takeaways

  • 2025 offers a rich line-up of cash payers across telecoms (Vodacom, MTN), banks (Standard Bank, Absa, Nedbank, FirstRand), staples (AVI, Tiger Brands), cyclicals (Kumba, Exxaro), REITs (Growthpoint, NEPI Rockcastle) and dual-listed miners (BHP, Glencore).
  • Dividend policies and coverage are your margin of safety.
  • Blend defensives plus cyclicals and consider ETF overlays for simpler, steadier income.
  • Maximise TFSA usage to reduce the tax drag, and remember REIT cash is taxed as income.

Sources (verified 22 Oct 2025)

Tax & wrappers

Dividend declarations & results (2025)

Dividend ETFs

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