JSE Champions: Unveiling the Top Dividend Payers of the Past Five Years

For income-oriented investors, South Africa’s Johannesburg Stock Exchange (JSE) holds a treasure trove of dividend-paying gems. But which stocks have consistently showered shareholders with the sweetest rewards over the past five years? Buckle up, as we dive into the world of JSE high-yield history makers:

Top Contenders:

1. RMB Holdings (RMB): This financial services behemoth reigns supreme, boasting a five-year average dividend yield of over 10%. Its consistent payouts, fueled by strong performance in banking and insurance, make it a reliable income source.
2. Bidvest Group (BID): This industrial distribution giant follows closely with an average yield of just below 10%. Its diverse portfolio and resilient business model have ensured predictable dividend growth throughout the years.
3. Investec (INL): The financial services and asset management powerhouse comes in next with an average yield of around 8%. Its focus on high-net-worth individuals and international expansion has fueled consistent dividend distributions.
4. British American Tobacco (BAT): The tobacco giant offers a solid average yield of about 7.5%. Despite regulatory headwinds, BAT’s strong international presence and consistent profitability guarantee solid returns for dividend seekers.
5. Pioneer Foods (PFD): Rounding out the top five is the food and beverage leader with an average yield of around 7%. Its diverse product portfolio and focus on essential goods have shielded it from economic downturns, translating into reliable dividend payouts. Pioneer Foods is now a wholly-owned subsidiary of PepsiCo (Africa, Middle East and South Asia or AMESA) *

* In 2019, Pioneer Food Group Limited (“​Pioneer Foods​”) entered into an agreement with PepsiCo, Inc. (“​PepsiCo​”) in terms of which PepsiCo would acquire Pioneer Foods. Following a long regulatory process, the two parties received approval on the proposed transaction subject to certain conditions, from the South African Competition Tribunal. The conditions agreed to by PepsiCo are a significant indication of its commitment to long-term investment in South Africa.As part of the implementation of the transaction, the company was delisted from the Johannesburg Stock Exchange from the start of trade on Tuesday 24 March 2020.

Beyond the Top Five:

The JSE offers a plethora of other high-yielding options beyond the elite five. Notable mentions include property firms like Redefine Properties (RDF) and Hyprop Investments (HYP), with average yields exceeding 8%. Resource giants like Glencore (GLN) and BHP Group (BHP) also offer compelling options, averaging around 6%.

Remember: Investing solely for dividends should not be your only strategy. Consider factors like company fundamentals, future growth prospects, and overall risk profile before making investment decisions. Diversification across sectors and asset classes remains crucial for a balanced portfolio.

Seek Expert Guidance: Consulting a financial advisor can help you navigate the ever-changing JSE landscape and choose the right dividend-paying stocks that align with your individual financial goals and risk tolerance.

With careful research and a long-term perspective, harnessing the power of JSE’s top historical dividend payers can be a rewarding strategy for building wealth and securing passive income. So, explore the potential, analyze your options, and embark on your dividend-harvesting journey on the JSE!

TIP: Open an Easy Equities account and ‘play around’ with in their Demo Account which makes R100 000 available for you to practise investing with BUT not to keep!