2 High-Yield Stocks to Buy in October Without Any Hesitation
2026-10-04 15:15
•Reuben Gregg Brewer •The Motley Fool
••••••• •••• Axe Cap view
Two Income Giants Worth Watching Beyond the Rand
Medtronic and McCormick offer attractive yields and growth, but their direct impact on the JSE is limited.
Medtronic's almost 50-year streak of dividend increases and recent revenue surge makes it a rare tech-health hybrid worth respect. Its 3.3% yield is solid, especially for a company with a credible turnaround story. McCormick is another stalwart, doubling down by acquiring Unilever's food unit, which should propel sales and keep dividends growing. Yet, these US-centric plays have only a mild link to South African markets, mostly through currency. The rand's recent weakness versus the dollar cushions offshore earnings in local terms but adds FX risk if the rand reverses. On the JSE, our yield hunters may look more south to banks like Nedbank or consumer stocks like Shoprite, which benefit more directly from local economic shifts. Still, for SA investors wanting global yield exposure without chasing high-beta tech, these names deserve a place. The key risk is that the rand could strengthen materially, eroding dollar-derived gains for rand investors. this is just our opinion and not financial advice
For local investors wanting steady income with moderate growth, buy Medtronic and McCormick via offshore portfolios while keeping rand-linked yield plays on the radar. Trim if the rand strengthens sharply or if global interest rates spike.
- MDT
- MKC
- USD/ZAR
- Rand appreciating sharply vs USD, reducing rand returns
- Unexpected slowdown in US consumer spending hitting MKC sales
5/10
The author recommends two high-yield dividend stocks for October: Medtronic (MDT), which has completed a business overhaul and is approaching Dividend King status with a 3.3% yield, and McCormick (MKC), a consumer staples company with 39 years of dividend increases and a 4.2% yield that is acquiring Unilever's food business to roughly double its sales.
Our take is based on reporting first published by The Motley Fool.