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2023-10-17 12:13 PM

South Africa’s top 7 dividend stocks in 2023

By William Dube

The Johannesburg Stock Exchange (JSE), renowned as the largest stock exchange in Africa and 14th globally, stands as a testament to South Africa’s economic growth since 1994. If you’re on the hunt for the best dividend stocks in South Africa or are curious about which companies pay dividends monthly, this article is your go-to resource.

Why Invest in Dividend Stocks in South Africa?

Dividend stocks have always been a favored choice for those looking to earn passive income. Essentially, when you own shares in a dividend-paying company listed on the JSE, you receive cash payouts proportionally to your shareholding. These payouts are dividends, and some of the highest dividend-paying stocks in South Africa provide these on a regular basis, sometimes even monthly.

However, it’s crucial to remember not all companies offer dividends. Many prefer to reinvest their profits for expansion. But for those specifically looking for shares that pay monthly dividends in South Africa or high dividend stocks on the JSE, the following list will be invaluable.

Top 7 Dividend Stocks in South Africa 2023:

  1. ABSA Group:
    • Earnings Per Share: R730.90
    • Return on Equity: R5.08
    • Estimated Dividend Yield: 8.92
    • Description: ABSA, an international financial powerhouse operating in 14 African countries, is renowned for its tailored solutions to local banking challenges. It’s a top pick among the highest dividend-paying shares on the JSE.
  2. Exxaro Resources:
    • Earnings Per Share: R2,955.00
    • Return on Equity: 18.78
    • Estimated Dividend Yield: 18.78
    • Description: Born from the merger of Kumba Resources Limited and Eyesizwe Coal, Exxaro stands out among monthly dividend-paying stocks in South Africa with its diverse mining operations and commitment to sustainability.
  3. Liberty Holdings:
    • Earnings Per Share: R -582.90
    • Return on Equity: -7.68
    • Estimated Dividend Yield: 8.21
    • Description: Founded by Sir Donald Gordon in 1957, Liberty Holdings emphasizes financial freedom and opportunity, making it one of the top 40 dividend-paying stocks in South Africa.
  4. Kumba Iron Ore:
    • Earnings Per Share: R7,107.00
    • Return on Equity: 48.01
    • Dividend Cover: 1.46
    • Description:
      Originating in 2005, Kumba Iron Ore has become a top player in the iron ore industry, contributing to the list of companies that pay dividends in South Africa.
  5. MTN Group:
    • Earnings Per Share: R749.00
    • Return on Equity: 16.55
    • Description: MTN, a major player in the telecommunications sector, is a prominent name among stocks that pay dividends monthly in South Africa.
  6. Old Mutual Limited:
    • Earnings Per Share: R116.10
    • Return on Equity: -7.61
    • Dividend Cover: 4.15
    • Description: As a premier African financial services Group, Old Mutual Limited is a staple in discussions about the best dividend stocks in South Africa.
  7. Africa Rainbow Capital Investment:
    • Earnings Per Share: R12.00
    • Return on Equity: 1.23
    • Description: A newcomer to the JSE, African Rainbow Capital is fast emerging as a promising name among monthly dividend stocks in South Africa.

Conclusion: For investors seeking the highest dividend-paying stocks in South Africa or those curious about the top dividend stocks on the JSE, this list serves as a comprehensive guide. Whether you’re interested in the top 40 dividend-paying stocks in South Africa or just the notable mentions, the dividend stocks listed here are among the best South Africa has to offer. Always remember to do thorough research before making any investment decisions.

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William Dube

William Dube is a finance and economic news expert with over 10 years of experience in economic anaylsis, financial product assessment and market analysis. With a numerous certificates from prestigious universities including but not limited to Yale University and the University of Pennyslivenia. William specializes in providing insightful news developments in South Africa and commentary on investment strategies, risk management, and global economic trends. You can contact him on william@rateweb.co.za