This article will discuss ten companies in South Africa that pay dividends. But first, a definition of dividends will be provided along with a brief explanation of dividends before eventually discussing the subject matter for companies paying dividends in 2022 South Africa.
A dividend according to Investopedia, is the distribution of a portion of a company’s profits to a group of shareholders, as determined by the company’s board of directors. Common stockholders of dividend-paying companies are usually eligible as long as they hold shares before the dividend payment date. Dividends can be paid in cash or additional shares.
Dividends must be approved by shareholders through their voting rights. Although cash dividends are the most common, they can also be issued in the form of shares or other assets. A stock dividend, on the other hand, is simply a dividend payment to shareholders in the form of shares as opposed to cash. Stock dividends have the benefit of rewarding shareholders without draining the company’s cash position, although they can weaken earnings per share.
10 Companies In South Africa That Pay Dividends
Now that a definition of dividend has been given and a brief explanation of the same has been done, here are ten of the many companies in South Africa that pay dividends according to the Johannesburg Stock Exchange (JSE).
1. Absa Group
The ABSA Group holds majority stakes in banks in Botswana, Ghana, Kenya, Mauritius, Mozambique, Seychelles, South Africa, Tanzania, Uganda, and Zambia, and insurance companies in Botswana, Kenya, Mozambique, South Africa, and Zambia. They also have offices in Namibia, Nigeria, and investment firms in the UK and the US.
2. Exxaro Resources
In 2006, in the month of November to be specific, Kumba Resources Limited separated paving the way for Kumba Coal and other assets to merge with Eyesizwe Coal to form what is now
known as Exxaro Resources Limited. Since then, Exxaro has grown to become one of the largest diversified mining companies in South Africa.
Exxaro has a huge portfolio of assets that includes coal operations and investments in iron ore, residual pigment production, and renewable energy. The organization boasts itself of doing more than merely as it believes in ensuring the improvement of people’s lives it the premises and has committed itself to make a positive change in the global sphere at the core of its existence.
Over the 10 years, Exxaro has made huge strides in its quest to become a superpower and its efforts have not gone unnoticed as even its peers are able to recognize and respect it for its innovation, ethics, and integrity, and is widely acknowledged as a leader in the Financial Times Stock Exchange (FTSE) Russell ESG.
3. Liberty Holdings
Liberty was founded in 1957 by Sir Donald Gordon whose inspiration for establishing the company came from seeing of his father who worked so hard in his but yet received a small financial reward for his efforts. His father’s struggle inspired him to believe that everyone should have the opportunity to increase their wealth and leave their families with proud legacies and it is from that belief the name was taken from America’s Statue of Liberty to infer freedom and opportunity
4. Kumba Iron Ore
Kumba was incorporated in South Africa on 16 May 2005 and commenced trading in November of the year 2006 following the unbundling of Kumba from Exxaro Resources Limited previously known as Kumba Resources Limited. Subsequent to unbundling, Kumba was listed on the JSE Limited (JSE) on 20 November 2006.
5. MTN Group
MTN was registered in South Africa in November 1994 and is engaged in the telecommunications industry through its affiliates, joint ventures, and acquaintances. The company’s shares are listed on the JSE under the name JSE: MTN in the mobile telecommunications sector.
6. Old Mutual Limited
Old Mutual Limited is one of Africa’s giants when it comes to premium financial services that are listed on the Johannesburg Stock Exchange (JSE). It also has a standard listing on the London Stock Exchange as well as a secondary listing on the Malawi, Namibia, and Zimbabwe Stock Exchanges. The company’s registration and incorporation are in the Republic of South Africa.
7. Africa Rainbow Capital Investment
This is a public company incorporated in the Republic of Mauritius and holds a Category 1 Global Business License under the Mauritian Financial Services Act of 2007. It is regulated by the Mauritian Financial Services Commission and the company is listed on the Johannesburg Stock Exchange Limited.
African Rainbow Capital is new on the dividend stock and is certainly one that is making substantial efforts to perform even better than it currently no wonder it is no surprise that it is one of the most promising to be listed on the Johannesburg Stock Exchange.
8. PSG Group Limited
This is a South African investment holding firm that specializes in various industries ranging from banking, financial services, education, and food business to mention a few. It also invests in some selected growth sectors that it joins while in its early stages.
9. FirstRand Limited
This is another South African financial services provider company whose parent entity is FirstRand Bank and is licensed by the Reserve Bank of South Africa, that country’s national banking regulator. The company was founded in the year 1838. It is one of the companies that pay dividends in South Africa.
10. ShopRite Holdings
This is a company whose reputation in Africa, precedes itself. ShopRite trades in not less than 17 countries on the African continent with over 270 franchise outlets. The ShopRite Group of companies began in the year 1979 and had its first listing on the Johannesburg Stock Exchange in 1986. Its penetration into Zambia began in 1995 when it purchased six infrastructures in a privatization deal during Chiluba’s reign as the president of the Republic of Zambia.
In conclusion, it has been noted that a dividend is the distribution of a portion of a company’s profits to a group of shareholders, as determined by the company’s board of directors. Further, companies paying dividends in 2022 South Africa have been discussed.
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