5.3% Yield and Still Worth Buying: The Dividend Stock I Keep Adding To
2026-08-08 23:15
•Reuben Gregg Brewer •The Motley Fool
•••• • Axe Cap view
5.3% Yield and Still Worth Buying: The Dividend Stock I Keep Adding To
Enbridge stands out as a steady dividend pick with solid cash flow and a growing renewable footprint.
Enbridge might not be listed on the JSE, but its business model offers a neat comparative lens for South African investors seeking reliable dividends amid energy sector uncertainty. The company has pumped out dividend increases for 31 years and sports a 5.3% yield—quite attractive when global growth worries keep interest rates sticky. It operates pipelines, regulated natural gas utilities, and renewables, which balance out the swings typical of pure oil plays. Back home, consider Sasol for exposure to energy with some caveats—its earnings remain more volatile, and regulatory risks are higher. Enbridge’s stable cash flow model backed by regulated assets is a blueprint that South African utilities might aspire to but don’t yet fully offer. The downside here: if global energy demand slips faster than expected or renewables get slower traction, the dividends could be pressured. Still, dividend-focused investors on the JSE might watch Sasol and related names closely while observing USD/ZAR for any currency-driven yield adjustments. this is just our opinion and not financial advice
I’d watch Sasol for tactical buys on dips but remain cautious due to volatility. For local dividend stability, lean on top banks or defensive sectors while keeping an eye on the rand’s strength versus the dollar to manage risk.
- Sasol
- USD/ZAR
- slower global energy demand
- regulatory and operational risks at Sasol
6/10
Enbridge (ENB) is highlighted as an attractive dividend stock with a 5.3% yield and 31 years of consecutive annual dividend increases. The company operates pipelines, regulated natural gas utilities, and growing renewable energy assets, providing reliable cash flows despite energy sector volatility. The author continues reinvesting dividends to purchase additional shares, viewing it as a long-term holding suitable for conservative dividend investors.
Our take is based on reporting first published by The Motley Fool.