The dividend yield of the J203:ALSH is 2.83%, versus the 12-year average of 2.79%. To discover which shares offer a good dividend yield requires you to look at shares with above average (greater than 2.83%) dividend yields.
Of the over 340 counters on the JSE, just 89 meet this criteria, with the top-10 dividend yielding stocks shown below. It’s no surprise that property/real-estate shares dominate the list:
If we were to eliminate the property counters, we have:
It’s one thing having a great dividend yield, but unless you are a listed property or REIT that pays a regular yield, how consistently you pay your dividend is also a factor to consider. A 10% dividend yield is no good if the company paying it skips or lowers a dividend from time to time.
Apart from the peace of mind a regular dividend payer gives you, there is one class of shares that are known to regularly out-perform the JSE – and these are shares that have consistently, without missing a beat, grown their dividend payouts for at least 6 years (average period of a business cycle.) Not only do these shares pay regular dividends, but their capital appreciation is known to generally outperform the overall market over 3 and 5-year holding periods.
These are available to PowerStocks Research subscribers on a daily basis and are shown below. The “D” column under “GURU” shows for how many years they have consistently, without missing a beat, grown dividends per share on a final-to-final and interim-to-interim basis. The items highlighted in red have financial results more than 200 days old, meaning they will soon post new results that may change their status (i.e. they may skip a dividend and then be eliminated off the list) so some caution may be advised with these counters.
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Note how NASPERS has consistently grown earnings for a stunning 15 years in a row. EOH has a 14-year uninterrupted dividend-increasing record, and Capitec a 13-year record. These are obviously counters that have used strong growth (organic or acquisition) to keep up this feat.
The “E” column under “GURU” shows how consistently these shares have grown earnings per share (interim-to-interim and final-to-final for each year). The fundamental characteristic of at least 5 years consistent earnings per share growth is another great predictor for shares likely to outperform the market and in this regard, SHOPRITE, EOH, SPAR and CAPITEC are worthy considerations.
Dwaine van Vuuren
RecessionAlert, PowerStocks Research
Dwaine van Vuuren is a full-time trader, global investor and stock-market researcher. His passion for numbers and keen research & analytic ability has helped grow RecessionALERT.com (US based) and PowerStocks Research into companies used by hundreds of hedge funds, brokerage firms, financial advisers and private investors around the world. An enthusiastic educator, he will have you trading and investing with confidence & discipline.