3 High-Yield Stocks to Buy With $1,000 Right Now
2026-10-26 08:44
•Keith Speights •The Motley Fool
•••• •••• Axe Cap view
High-Yield Dividend Picks: What They Mean for SA Investors
Three US dividend stalwarts offer income opportunities, but South African investors should weigh currency risk carefully.
Bristol Myers Squibb, Enterprise Products Partners, and Verizon offer attractive yields that stand out in the low-yield environment. But local investors must consider currency risk — a stronger rand versus the dollar would cut into these US dividends when converted back home. Enterprise Products Partners benefits from the natural gas boom, which indirectly resonates with South Africa's energy sector struggles, while Verizon’s steady telecom cash flow is a nice parallel to MTN’s income profile. The catch? BMY faces patent cliff risks which can pressure future dividends. If you want to stay fully local, banks like Standard Bank and insurers like Sanlam offer solid dividends and avoid currency volatility. For those willing to take the rand risk with some FX hedging or long horizon, these US stocks add yield diversification beyond what JSE giants provide. this is just our opinion and not financial advice
For rand-based investors chasing yield, buying a measured allocation of these US dividend stocks could work well as a secondary income source, provided you hedge some currency risk or have a long horizon. For more conservative exposure, stick with high-dividend JSE names like Standard Bank or Sanlam.
- USD/ZAR
- Bristol Myers Squibb
- Enterprise Products Partners
- Verizon
- Standard Bank
- Sanlam
- Rand appreciation can erode dollar-denominated income
- Patent expiries may pressure BMY dividends
- Energy transition risks could impact EPD cash flows
5/10
The article recommends three high-yield dividend stocks for investors with $1,000: Bristol Myers Squibb (4% yield, 17-year dividend growth streak), Enterprise Products Partners (6.1% yield, 28-year distribution increase streak), and Verizon Communications (6.3% yield, 20-year dividend growth streak). All three stocks offer yields significantly above the S&P 500's ~1% yield and demonstrate strong dividend sustainability through low payout ratios and solid cash flow generation.
Our take is based on reporting first published by The Motley Fool.