2 Energy Dividend Stocks to Buy in August for Steady Income
2026-08-05 22:05
•Stefon Walters •The Motley Fool
••• ••• Axe Cap view
Energy Dividends: Look Beyond Global Giants to Sasol
While US energy firms shine on dividends, South African investors should focus closer to home for yield and local currency protection.
Global energy dividends have grabbed attention thanks to strong commodity prices. Chevron offers a rock-solid payout with nearly four decades of growth, and US pipeline operator Energy Transfer boasts a high 6.5% yield backed by fee-based cash flow. However, South African investors exposed to these via USD faces currency risk with the rand's volatility against the dollar. Locally, Sasol is the obvious proxy for energy dividends on the JSE. Its payout is tied directly to oil and gas prices and benefits from a weaker rand supporting rand earnings. Despite recent challenges, Sasol’s dividend yield at roughly 7% looks attractive, especially against South African banks and retailers. That said, Sasol remains cyclical and tied to global energy demand and rand stability. If oil dips or the rand strengthens sharply, Sasol’s dividend outlook will suffer. For steady income, investors can get dividend exposure through Sasol while watching rand trends closely. this is just our opinion and not financial advice
Buy Sasol for dividend income and rand hedge but keep exposure moderate due to commodity and currency risks. Avoid US energy stocks directly unless you hedge the currency risk.
- Sasol
- USD/ZAR
- Sharp oil price declines reducing dividend capacity
- Rand strength eroding rand earnings for energy exporters
7/10
The energy sector has led all S&P 500 sectors with a 32.7% gain year-to-date. Energy Transfer and Chevron are recommended as dividend stocks offering above-average yields. Energy Transfer, a pipeline operator, offers a 6.5% yield with 19 consecutive quarterly dividend increases, while Chevron, a fully integrated energy company, provides a 3.67% yield with 39 consecutive years of dividend increases.
Our take is based on reporting first published by The Motley Fool.
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