INVESTING IN DIVIDENDS STOCKS | Which stocks pay dividends in South Africa | Easy Equities

Finance-focused summary (Dividend investing in South Africa)

Core ideas about dividends

• Dividends are cash paid to shareholders based on their ownership stake in a company/asset.
• Dividend payouts are described as a predetermined payout range (e.g., “4% 5% 6%”).
• The speaker emphasizes that dividends depend primarily on the business making profits, not on whether the share price is up or down.
• If profits fall, dividends may be reduced or stopped—so dividend-paying companies are framed as a sign of profitability.

Platforms / implementation approach

• Investing via Easy Equities (spoken as “Eas equities” / “easy quties”).
• An alternative path mentioned is using a financial advisor to find dividend stocks, but the speaker prefers researching themselves.

Method / step-by-step framework to find dividend payers

1. Use Google search queries such as: “dividend … dividend paying companies in South Africa.”

2. For each candidate, check:

   • Dividend yield / payout percentage
   • Dividend timing consistency:
     • Prefer companies/ETFs that paid recently (including dividends within the last year).
     • Prefer dividends paid around Mar/Apr and onward (spring/first-quarter timeframe mentioned).
   • Consistency:
     • Prefer entities that have paid dividends consistently.
     • Avoid those that haven’t paid dividends for 3–5 years.
3. Apply a yield rule:
   • Avoid yields below ~5%
   • Prefer ~8%–10% and above
4. Keep a watchlist (“write them down”) with:
   • Company/ETF name
   • Dividend percentage
5. Invest after reviewing the list.

“How much to invest” (numbers / expectations)

• No explicit minimum is claimed: “any amount” can start earning dividends via Easy Equities.
• Practical emphasis: start with at least one share (based on the cost/price of a single share at the time).
• Example dividend ranges (not firm forecasts):
  • Early on: dividends around 30–70 cents (Rand cents)
  • Later: dividends around roughly R80, R50, R200, R300 as the portfolio grew
• Reinvestment strategy:
  • Dividends are reinvested to increase future payouts (“beef up” holdings).

Income substitution / feasibility claim

• The speaker claims living off dividends is possible but not realistic alone for most people.
• Example given: a client earning about R5,000 per year from dividends by heavily investing in mining companies and holding a large portfolio.

Tax approach / account types mentioned

• Tax-free investments (Easy Equities “taxfree”):
  • Claims dividends and profits in the tax-free account don’t trigger dividend tax (as stated).
  • The speaker advises not overthinking taxes in that account type.
• Normal account:
  • Taxes apply on profits; no tax is expected unless selling/profits are realized (as described).
• This tax handling is presented as a key reason for preferring certain holdings inside tax-free.

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Dividend / income-related instruments and equities mentioned

ETFs (including “CETRIX” branded products)

• CETRIX DV ETF
  • Described as a top source of dividends.
  • Dividend frequency claimed: every quarter (April, June, September, December mentioned).
  • Typical dividend amounts claimed: ~R300 and more (based on holding size).
  • Framed as an ETF tracking dividend-paying companies (“cluster of companies”), not a single stock.
• 10x Total World Stock Feeder ETF
  • Stated to pay dividends (mostly held in the tax-free account).
• CETRIX RAFI 40 ETF (Foreign) (spelling uncertain)
  • Stated to pay dividends.
• CETRIX Quality South Africa
  • Stated to pay dividends.
• Sangria / similar CETRIX Europe / foreign ETF (name unclear)
  • Said to pay dividends.
  • Subtitles referenced: “sangria … Euro stocks 5 forign” (exact ticker not provided).

Company / equity names mentioned as dividend payers

• Lighthouse Properties PLC
  • Said to pay dividends (mentioned as being in the normal account; earlier small holding).
• CMH Group
• Combined Motor Holdings Limited (interpreted as CMH Group / associated motor retail)
• Kumba Iron Ore (spoken as “Kumba ion”)
• PPC Cement
• Sunlum (likely Sunlum / Sunnam—exact company name unclear)
• Discovery Diversified Income Fund (fund, not a single stock—details unclear)

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Explicit recommendations / cautions

• Not financial advice:
  • The speaker states “I am not a financial advisor” and that they can’t help choose assets for others (implied legal/regulatory restriction).
• Prefer simplicity:
  • The speaker says they do not look at financial statements.
  • They prefer checking only past dividend payments, dividend yield/percentage, and whether dividends were paid in the last year/current year.
• Dividend profitability dependency:
  • Dividend reliability is tied to company profits; if a company isn’t profitable, dividends may stop.
• Reinvestment:
  • Reinvesting dividends is emphasized to grow future payouts.

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Performance metrics / targets mentioned

• Goal: reach ~R1,000 per quarter from a single asset (specifically the CETRIX DV ETF) by growing to around ~R50,000 invested.
• Current example cited:
  • About R300 dividends from one portfolio/asset.
• Longer-term personalization:
  • Planned deposits into tax-free are expected to “take majority” of new investing and add more to CETRIX DV to get closer to the R1,000/quart goal.

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Disclosures / disclaimers

• Speaker: not a financial advisor; shares experience only and does not provide formal advice.

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Presenters / sources

• Presenter: Jalo (referred to as “my name is jalo”)
• Platform/source: Easy Equities (mentioned repeatedly)