Skip to content

5 Best High-Yield Shares on the JSE

Updated 15 Aug 2022
5 Best High-Yield Shares on the JSE

The 5 Best High-Yield Shares on the JSE revealed. We have carried out extensive fundamental and technical analysis to indicate the best shares on the JSE with a high yield (5%+).

This is a complete guide to the 5 Best High-Yield Shares on the JSE

In this in-depth guide you’ll learn:

  • What is a High-Yield Share?
  • 5 Best High-Yield Shares on the JSE
  • How to choose High-Yield Dividend Stocks
  • The Best Share Brokers in South Africa

And lots more…

So, if you’re ready to go “all in” with the 5 Best High-Yield Shares on the JSE…

Let’s dive right in…

What is a High-Yield Share?

The dividend yield is a financial metric for assessing the regularity and size of dividend payments made to shareholders per the market price of a share.

This figure is arrived at by dividing the dividend paid out per share by the current share price and then multiplying the resulting decimal by 100.

The typical ratio acceptable for dividend yield is between 2% to 4%, with anything above this considered high yield.

5 Best High-Yield Shares on the JSE

Nu-World Holdings Ltd (JSE: NWL)

high yield shares stock exchange

This firm is a holding company traded on the South African Stock Exchange (JSE Ltd.). Many diverse types of household appliances, electronics, and name-brand consumer goods are imported and exported through its many affiliates.

With its subsidiaries, Nu-World Holdings Ltd imports, manufactures, assembles, markets, and distributes a wide variety of name-brand consumer products.

Consumer electronics, high-tech, small electrical appliances, white goods, and more are just some of the products that Nu-World Holdings Ltd and its affiliates import, manufacture, assemble, sell, and distribute.

Currently trading at ZAR 607m (or around 0.003% of the equity market on the Johannesburg Stock Exchange), Nu-World Holdings Limited is the 294th most valuable stock on the JSE.

Growth, Valuation, Trading Information
Share Price 26.81 ZAR
Market Capitalization 607 million ZAR
Gross Turnover 1.99 million ZAR
52-Week Range 25.00 – 35.00 ZAR
Shares Outstanding 22.6 million
Earnings per Share 5.76 ZAR
P/E Ratio 4.65
Dividend per Share 2.49 ZAR
Dividend Yield 9.28%

Combined Motor Holdings Ltd (JSE: CMH)

An investment holding firm, Combined Motor Holdings Ltd. has subsidiaries with significant stakes in the retail motor, automobile rental, and financial services industries. Combined Motor Holdings’ business is handled via its subsidiaries as it does not engage in any trading itself.

With a market value of ZAR 1.94 billion or around 0.0097% of the equity market on the JSE, Combined Motor Holdings Ltd is the 215th most valuable stock currently.

With a year-to-date performance rating of 98th on the JSE, Combined Motor Holdings started the year with a share price of 24.90 ZAR and has since gained 4.02% on that price valuation.

Growth, Valuation, Trading Information
Share Price 25.90 ZAR
Market Capitalization 1.94 billion ZAR
Gross Turnover
52-Week Range 18.61 – 33.24 ZAR
Shares Outstanding 74.8 million
Earnings per Share 5.01 ZAR
P/E Ratio 5.17
Dividend per Share 3.35 ZAR
Dividend Yield 12.9%

Sygnia Limited (JSE: SYG)

Sygnia Ltd. and its subsidiaries (collectively referred to as “the Firm”) are a South African-based, specialized financial services group that trades on the JSE and A2X Markets.

The majority of the Group’s institutional and retail customers are based in South Africa, where they may take advantage of the company’s specialized investment management, savings products, and administrative solutions.

south africa high yield shares

With a current market value of ZAR 2.65 billion or around 0.013% of the equity market on the JSE, Sygnia Limited is the 197th most valuable stock currently.

Growth, Valuation, Trading Information
Share Price 17.79 ZAR
Market Capitalization 2.65 billion ZAR
Gross Turnover 6,341 ZAR
52-Week Range 13.51 – 17.79 ZAR
Shares Outstanding 150 million
Earnings per Share 1.88 ZAR
P/E Ratio 9.38
Dividend per Share 1.60 ZAR
Dividend Yield 9.05%

Ninety-One Limited (JSE: NY1)

The Ninety-One Group was created in South Africa in 1991 as an independent worldwide asset management overseen by its founder. It caters to an elite clientele throughout the world by providing them with a variety of high conviction, active techniques.

Access to a wide variety of asset classes and geographic areas is at the heart of the investment proposal provided to clients by The Ninety-One Group’s professional investment teams, who oversee a variety of unique investment strategies.

The Ninety-One Group now has two channels of distribution (Institutional and Advisor) and five regional teams (called Client Groups) located in Africa, the United Kingdom, Asia Pacific, the Americas, and Europe to better serve its customers.

With a market value of ZAR 38.2 billion or around 0.192% of the equities market on the JSE, Ninety-One Plc is the 63rd most valuable stock currently.

Growth, Valuation, Trading Information
Share Price 40.70 ZAR
Market Capitalization 38.2 billion ZAR
Gross Turnover 5.67 million ZAR
52-Week Range 36.00 – 61.25 ZAR
Shares Outstanding 923 million
Earnings per Share 4.24 ZAR
P/E Ratio 9.76
Dividend per Share 2.95 ZAR
Dividend Yield 7.13%

AECI Limited (JSE: AFE)

A collection of 17 separate businesses, AECI is a truly global conglomerate. Business operations are conducted on a regional and global scale in Africa, Europe, South East Asia, North America, South America, and Australia.

high yield shares JSE

Mining, water treatment, plant and animal health, food and beverage, infrastructure, and general industrial clients are just some of the many that benefit from the company’s products and services.

With a market value of ZAR 10.3 billion, or around 0.052% of the Johannesburg Company Exchange equity market, AECI Limited is the 116th most valuable stock on the JSE currently.

Growth, Valuation, Trading Information
Share Price 98.15 ZAR
Market Capitalization 10.3 billion ZAR
Gross Turnover 10.4 million ZAR
52-Week Range 90.01 – 127.00 ZAR
Shares Outstanding 106 million
Earnings per Share 11.16 ZAR
P/E Ratio 8.72
Dividend per Share 6.85 ZAR
Dividend Yield 7.04%

How to choose High-Yield Dividend Stocks

When investors acquire shares, they become partners to the profits made by the firm through its operations. The company can choose to either disperse these earnings or reinvest them totally or in part to enhance production or grow.

The gains given to shareholders are termed a dividend, and this is a wonderful approach to making a stable income via stock investing.

However, not all corporations declare huge dividends. Hence, if investors are searching for a regular income source via stocks, then they must look for firms that have a history of paying significant dividends.

The dividend yield is a statistic that measures the annual dividend paid out by a firm as a percentage of the current stock price. The formula is simple:

  • Dividend Yield = Annual Dividend × 100 / Share Price

Considerations for choosing High Dividend Yield Stocks in South Africa

high yield shares south africa

The dividend yield alone is not sufficient information for investors to base their judgments on. Since dividend yield is a ratio of dividends to stock price, it rises when share prices fall.

If you invest in these stocks without investigating the cause of the price reduction, you could lose money. Therefore, while selecting high dividend yield companies, investors should consider the following:

  • The firm must have a record of accomplishment of regular dividend payments.
  • The dividend yield of the stock should increase annually.

Companies with high dividend yields are more likely to be stable and increase if certain conditions are met. When assessing high dividend yield firms, investors should think about the following criteria.

  • Ensure that the dividend yield increases yearly.
  • A sustainable pay-out ratio refers to the ratio of the company’s yearly income to its annual dividends. This must be compared to other businesses in the same industry. A lower pay-out ratio often signals dividend sustainability.
  • Investors must consider the cash dividend pay-out ratio to analyse the sustainability of overall pay-outs. This is the proportion of operational cash flows subtracted from capital expenditures paid out as dividends by the corporation.
  • The overall return since the most recent dividend payment.
  • Examine closely the earnings per share (EPS). This is the company’s net income divided by the total number of outstanding shares. It provides a view of the company’s profitability to its stockholders. A corporation with a high dividend yield ratio and continuous earnings per share growth is often seen as a solid investment.
  • Investors must consider the company’s Price to Earnings (P/E) ratio. This might assist them in determining if the present market price of the company’s shares is overpriced or undervalued. Therefore, they will be more equipped to evaluate the stock’s dividend yield.

Conclusion

top high yield stocks

Always keep in mind that a single metric cannot reflect the strength of a business or its stock, as investors. Before investing, dividend investors must spend time researching the company’s financial soundness, growth trajectory, competitive position, management effectiveness, etc.

Stocks with a high dividend yield are an excellent addition to any investor’s portfolio. However, consumers must check that the firm is worth investing in and refrain from purchasing stocks based purely on dividend yield.

FAQs