The Smartest Dividend Stock to Buy With $1,000 Right Now (Spoiler: It Yields 5.6%.)
2026-07-29 02:30
•Selena Maranjian •The Motley Fool
•••• • Axe Cap view
Sanofi’s Dividend Appeal: Worth a Look Beyond the Rand
Sanofi offers a rare global dividend yield near 6%, boosted by solid sales growth in immunology and attractive valuation.
South African investors hunting for yield outside our local high-dividend names like Sanlam or MTN might consider Sanofi, the French pharma giant. At a 5.6% dividend yield, increasing to nearly 11% if you factor in its steady share buybacks, it punches above many global healthcare stocks. Dupixent, its flagship immunology drug, grew sales 31% last year, driving overall revenue up 13.6%. Sanofi trades at a forward price-to-earnings ratio of 9, well below its recent averages, suggesting the market is undervaluing its growth potential. The caveat here is currency risk: the rand against the euro (EUR/ZAR) can erode returns, especially if the rand strengthens unexpectedly. Moreover, pharma regulatory surprises or patent cliffs can hit long-term forecasts. Still, if you want international exposure with a defensive angle, Sanofi is worth watching. this is just our opinion and not financial advice
We would add Sanofi gradually, weighting currency risk. Consider trimming if EUR/ZAR rallies sharply or if local rand yielders recover more attractively.
- Sanofi (SNY)
- EUR/ZAR
- rand appreciates sharply vs. euro
- unexpected pharma regulatory setbacks
6/10
Sanofi, a French pharmaceutical company, is recommended as a promising dividend stock with a 5.6% yield that approaches 11% when including stock buybacks. The company is growing well with its flagship drug Dupixent showing 31% year-over-year sales growth, and the stock trades at an attractive valuation with a forward P/E ratio of 9, well below its five-year average.
Our take is based on reporting first published by The Motley Fool.