Overview
For investors, dividends are the company’s way of rewarding them for their investment. Even if a company is profitable, it is crucial to remember that not all corporations pay dividends.
Dividends are paid to shareholders at the discretion of the company’s board of directors. Because all dividends are paid “per share basis,” the amount you get depends on how many shares you own when a dividend is declared.
Each year, the company chooses whether or not to pay out dividends in cash or reinvest the profits back into the business to generate even more revenue.
If you’re thinking about buying more stock in a firm, the dividend yield may be an essential consideration for you as a shareholder. The higher the yield, the more money you can expect to make from the stock.
In this article, we take a look at the best dividend-paying companies which operate on the basis of monthly-paying stock on the JSE, allowing you to make an informed investment choice for 2025.
Exxaro Resources
Exxaro Resources Limited was formed in November 2006 as a result of the unbundling of Kumba Resources Limited and the subsequent merger of Kumba’s coal and other assets with Eyesizwe Coal.
Since then, Exxaro has evolved to be one of South Africa’s largest and most diversely owned mining businesses.
Exxaro’s portfolio comprises coal operations, iron ore investments, residual pigment manufacturing, and renewable (wind) energy projects (Cennergi).
The organization strives to be more than just a mining company and strongly believes that strengthening local people and creating a positive influence on the world is at the core of its mission.
To this end, Exxaro Resources has grown into one of South Africa’s largest and preeminent coal and heavy mineral corporations, with operations in Europe, the US, and Australia.
After a temporary pause during 1Q21, the global economic expansion resumed in the second quarter of 2025, lifting global economic output above pre-pandemic levels.
However, increased commodity prices, poorly functioning supply chains, and some labor supply challenges increased global inflationary pressures during the last period.
In respect of Exxaro’s key commodities the coal export price index is expected to average US$95 (2H20: US$64) per tonne, free-on-board (FOB), and the iron ore fines price at US$183 (2H20: US$122) per dry metric tonne, cost and freight (CFR) China.
Despite global inflationary pressures, Exxaro’s production is forging ahead, while at the same time the company has continued its strategy to reward shareholder investment through dividend payments.
Impala Platinum Holdings (Implats)
Implats is a leading producer of platinum group metals (PGMs) structured around six mining operations, as well as Impala Refining Services (IRS), a toll refining business.
The platinum mining giant’s operations are located on the Bushveld Complex in South Africa, the Great Dyke in Zimbabwe – the two most significant PGM-bearing ore bodies in the world – and the Canadian Shield.
Implats employs 56 180 people across its operations and markets and sells its products in South Africa, Japan, China, India, the US, and Europe. The metals which Implats produces are the key to making many industrial, medical, and electronic items, and they contribute to a cleaner, greener world.
As such, PGMs are fundamental components in the hydrogen production pathway, through electrolysis, to reduce the cost of clean hydrogen for use in energy transportation sectors.
The structure of the company’s operating framework allows for each of its operations to establish and maintain close relationships with its stakeholders while operating within a Groupwide approach to managing the economic, social, and environmental aspects of sustainability.
The Group’s processing assets are a key competitive differentiator. The changing ore mix of Implats’ growing production profile and the aspiration to improve the energy efficiency and environmental impact of its value chain will result in a series of studies aimed at proposing the optimal route for expansion.
Implats balance sheet is strong, with a substantial closing net cash balance and increased funding flexibility through upsized and refinanced facilities.
In line with the Group’s capital allocation priorities, this will allow Implants to prioritize shareholder returns and fund the sustainable and efficient growth potential of its asset base.
The outcomes of the company’s financial capital result from the use of its capital within its operating context and through its chosen strategies.
To this end, in the current environment, R123 049 million in value was distributed to various stakeholders and R20 987 million of shareholder value was retained in the business.
Of the R38.3 billion free cash generated in the period, circa 70% was allocated to shareholder returns through dividends of R17.7 billion (R7.9 billion interim and R9.8 billion final) and repurchasing R8.6 billion of ZAR convertible bonds and R0.2 billion of shares via the odd-lot offers.
In summation, Implants is an efficiently operated platinum giant which has continued to deliver growth for its shareholders despite pressing global economic conditions in the recent period.
Sanlam
Sanlam was established as a life insurance company in South Africa but has since transformed into a diversified financial services group operating across Africa, India, and selected emerging and developed markets, with listings on the Johannesburg, A2X, and Namibian stock exchanges. The Group has been operating for more than 100 years, most of which are as a mutual insurer. Sanlam was demutualized and listed on the Johannesburg and Namibian stock exchanges in 1998.
Sanlam’s main sources of earnings are the net operating profit (net result from financial services) which it earns from its different lines of business and the net income which it earns from investing its capital in the financial markets (net investment return).
Current and expected future growth in these sources of earnings is the main driver behind shareholder value creation as measured by Return on Group Equity Value (RoGEV), the Group’s main financial performance indicator.
Sanlam is an emerging market participant with a unique footprint that spans countries with high economic growth potential and low financial services penetration outside of South Africa (its largest market).
This provides the company with a leveraged future growth opportunity.
This position is owed to the fact that Sanlam is well positioned to meet the demand for financial solutions that arises when African and Indian demographic profiles change and aspirational lifestyles develop due to economic growth, urbanization, and young people entering the formal economy.
Sanlam has a well-diversified business across product sets, market segments, and geography. The Group offers clients a range of financial solutions that can fully meet the needs of individuals and organizations across 44 countries. We have strong market positions in all segments.
Furthermore, Sanlam’s large, stable South African base, which contributes 68% to net results from financial services, and mature book allows the company to invest in other high-growth territories through a partnership model.
Vodacom Group
Vodacom is a leading African connectivity and financial services company. The Group, including Safari.com, serves 123.7 million customers across consumer and enterprise segments.
Vodacom offers a wide range of services, including telecommunication, information technology (IT), digital, IoT, and financial services.
Since 1994, Vodacom has expanded its mobile network footprint from South Africa to Tanzania, the Democratic Republic of the Congo (DRC), Mozambique, Lesotho, and Kenya.
Vodafone Group Plc (Vodafone) – one of the world’s largest communications companies in terms of revenue – has a 60.5% shareholding in Vodacom.
Considering the magnitude of challenges arising from the pandemic, along with the price cuts that Vodacom effected in South Africa and the zero-rating of P2P M-Pesa transfers across most of the company’s international markets, the Group delivered a strong financial performance as per its latest financial report
Group revenue increased by 8.3% to R98.3 billion, with service revenue up 5.8% to R77.6 billion. These results were supported by the recovery in Vodacom’s International portfolio in the second half of FY21 and strong growth from the company’s prepaid and Vodacom Business segments, financial services, and other new services in South Africa.
Group EBITDA increased by 4.5% to R39.3 billion, and headline earnings per share were up 3.7% to 980 cents per share (cps). As a result, the company’s final dividend per share was 825cps.
In South Africa, despite economic disruption and the substantial data price cuts, Vodacom reported strong revenue growth of 10.3% to R76.7 billion, with service revenue growth of 7.0% to R56.4 billion.
This is on the back of increased data usage, the highly successful Shake-Up Summer campaign, and demand for financial services.
Combined, these helped offset several initiatives aimed at delivering greater value to Vodacom shareholders and customers. Some of these initiatives include reducing data tariffs by up to 40%, and launching VodaBucks.
Coronation Fund
Coronation Fund Managers is a South African third-party fund management company, headquartered in Cape Town.
The company has locations in all South African major centers and offices in, Ireland, the United Kingdom, and Namibia where it is represented by Namibia Asset Management a strategic partner.
Coronation’s institutional business manages R367 billion of assets on behalf of South African and global institutions.
The company continues to manage a meaningful share of assets in the local retirement fund industry, representing a total AUM of R293 billion, making Coronation one of the largest independent managers of retirement assets in the country.
Added to this, the company manages a total of R74 billion in its global strategies on behalf of several leading international retirement funds, endowments, and family offices. This franchise has grown well over the years on the back of excellent investment outcomes produced for clients.
Coronations continue to attract new clients into a number of its global strategies, predominantly the Global Emerging Markets Equity Strategy.
The long-term track record across Coronation’s fund range remains compelling and benefited from strong performance over the most recent reporting period.
89% of the assets entrusted to the company’s rand-denominated fund range are invested in funds that produced first-quartile performance in their respective peer groups over the past 10 years, while 99% of the assets are invested in funds with above-average performance over the same period.
18 out of 23 Coronation unit trusts ranked first in their respective ASISA categories since their inception dates.
It is not surprising then that, notwithstanding the challenging backdrop of the coronavirus pandemic, Coronation has reported exceptional growth to both its clients and shareholders.
For the 12-month reporting period, the MSCI All Country World Index was up 11% (USD), the MSCI Global Emerging Markets Index was up 18% (USD) and the FTSE/JSE All Share Index was up 23% (ZAR).
Strong outperformance of the underlying markets in client mandates contributed to excellent results for the 12 months ended 30 September 2025, with revenue and earnings from fund management up 17% and 23%, respectively, from the prior year.
Given the strong outperformance across Coronation’s portfolios, average AUM increased by 9% year on year to R617 billion (September 2025: R565 billion) and year-end AUM is up 11% to R634 billion (September 2025: R569 billion).
Truworths Limited
Truworths International Ltd is an investment holding and management company listed on the JSE Limited (JSE) and the Namibian Stock Exchange.
Its principal trading entities, Truworths Ltd and Office Holdings Ltd, are engaged either directly or indirectly through subsidiaries, concessions, agencies, or wholesale partners, in the cash and account retailing of fashion clothing, footwear, homeware, and related merchandise.
The company and its subsidiaries operate primarily in South Africa and the United Kingdom and have a presence in Germany, the Republic of Ireland, and sub-Saharan African countries.
The Group has emerged in a strong position despite significant macroeconomic challenges during the 26-week period ended 26 December 2025 and in the months prior thereto, as per the company’s latest financial reports.
The impact of the COVID-19 pandemic on the Group’s main markets, the consequences of the exit of the United Kingdom from the European Union, the civil unrest in South Africa in mid-July 2025, and the resulting supply chain disruptions have made it a particularly difficult trading environment.
The supply chain disruptions resulted in unusually lower than planned inventory levels which in turn caused some lost sales during November (Black Friday) and December (Christmas period).
On the positive side these shortages, together with the obvious appeal the stock in stores had to customers, led to a much reduced season-end stock carryover and, therefore, lower markdowns and higher gross margin.
As a result, group retail sales increased by 2.0% to R9.9 billion relative to R9.7 billion. The further lifting of restrictions as the country passed the peak of the Omicron-fuelled fourth wave of the COVID-19 pandemic has contributed to the normalizing of the economy.
This is favorable for consumer sentiment and, ultimately, retail spending. While COVID-19 uncertainty is expected to continue well into the future, the risk of further waves of infection will be mitigated by increasing vaccination levels and administering booster doses of the vaccine.
Although the economic outlook remains challenging, analysts expect growth to be supported by initiatives to increase its market share in categories where it is under-represented, as well as the following actions:
- the ongoing improvement in the health of the debtor’s book
- the introduction of new credit products and payment options
- new and expanded retail store concepts and brands
- the continual expansion of the Group’s e-commerce offering and
- further technological innovation to support the customer shopping experience.
To reflect this, Truworths’ retail sales for the first seven weeks of the second half of the 2025 reporting period increased by 5% compared to the first seven weeks of the prior corresponding period.
Spar Group
Spar Group is a warehousing and distribution business that provides fresh produce and high-quality merchandise to a network of independent retailers who trade under the Group’s brands.
Spar’s distribution centers are located in four main territories and supply its retailers on a voluntary basis.
According to the most recent financial reports, the Group increased sales by 5.8% from R43.0 billion to R45.5 billion for the period when compared to the prior comparative period.
Considering the COVID-19 pandemic and the extraordinary effect this has had on the Group over the past approximately two years, the Group continues to benefit from its diversity and has demonstrated its robustness and resilience during these disruptive times.
Total sales in Southern Africa increased by 8.2%, primarily driven by the abnormally high growth in liquor sales.
The core SPAR wholesale grocery business reported sales growth of 3.7% against internally measured price inflation of 4.4% with general food inflation increases across most categories.
Following the lifting of the COVID-19 nationwide liquor trading bans in September 2025, the TOPS at SPAR liquor business has subsequently seen incredible levels of growth in liquor sales, with an increase of 55.8% reported for the period. No trading days were lost during the period, against the 58 days lost in the prior comparative period. Liquor trading for the period represents growth of 27.9% against the 2025 period.
Turnover for the Swiss business increased by 1.9% in CHF terms (0.0% in ZAR terms) compared to the prior comparative period.
Against the 2025 period, turnover increased by 15.9% in CHF terms, demonstrating the extraordinary gains made by this business over the past two years.
Switzerland had less severe COVID-19 restrictions during the festive trading period, which caused a slowdown in the extraordinary levels of support for local community stores experienced in the prior comparative period when increased levels of home consumption saw consumers shopping nearer to home.
Conversely, the TopCC cash and carry business reflects the positive recovery of the hospitality sector as turnover for this segment grew by 5.6% in CHF terms.
Of the 60 Store Service AG stores, 40 have now been converted to SPAR stores and the conversion of the remaining 20 convenience stores located on AVIA fuel forecourts is underway. Trading for these stores continues to perform ahead of expectations.
As such, Spar Group has reported robust and resilient growth despite trying economic circumstances as a result of the global coronavirus impact, making it a solid investment for future growth.
Frequently Asked Questions
What are dividends?
When a company’s earnings are distributed to its shareholders, the board of directors determines which shareholders will receive a dividend and which shares will not.
In most cases, common shareholders of dividend-paying firms are eligible to participate as long as they hold their stock prior to the ex-dividend date.
Through their voting rights, shareholders must give their approval for dividends to be paid out. Although cash dividends are the most popular type of dividend, dividends can also be paid in the form of stock or other types of real estate.
Diverse mutual funds and exchange-traded funds (ETFs), in addition to corporations, pay dividends to investors.
Do all stocks pay dividends?
Not every company will pay dividends to their shareholders, with some entities choosing instead to reinvest profits back into the business. For this reason, investors hoping to earn dividends from stocks must find companies that offer them.
What comprises a good dividend investment?
Despite the fact that every company can experience a lucrative quarter from time to time, only those who have shown sustained growth on a yearly basis can be considered for inclusion. Companies with long-term earnings growth projections between 5 percent and 15 percent should be sought after by investors.
Following that, investors should look for companies that generate a significant amount of cash flow, which will be used to pay for those dividends.
How do I invest in dividend-paying stocks?
It takes time and effort to build a portfolio of individual dividend stocks, but for many investors, the effort is well worth it.
To get a better understanding of what’s going on under the hood of a high-dividend stock, start by comparing the dividend yields of its rivals. Look at the payout ratio of the stock next, which indicates how much of the company’s income is allocated to dividends.
Which are the best monthly-paying dividends in South Africa?
Some of the best monthly-paying dividends in South Africa include:
- Exxaro Resources
- Impala Platinum Holdings
- Sanlam
- Vodacom Group
- Coronation Fund
- Truworths Limited
- Spar Group
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