You may find it hard to believe but dividends accounted for over 90% of returns for US Investors over the last century.

That’s according to a study conducted by the world’s largest asset manager, BlackRock, in 2010.

And if that’s not enough to make you want a few dividend stock payers in your portfolio, then consider that more than half of Warren Buffett’s wealth can be attributed to… Dividends!

As I’ll show you in a moment, dividend payers in SA have also been significant wealth builders for South African investors.

A study of dividends and returns on shares on the JSE since 1967 showed dividends account for over 40% of the total returns investors make in the SA market.

Just think, a stock that pays consistent dividends can add as much as 20%, even 30% to your investment return.

That’s the power of dividends. The company is effectively rewarding you with cash for holding their stock. Of course the key to dividends is not to take the cash payout once a quarter or every 6 months but to reinvest them! That’s when you experience the real wealth that a dividend portfolio can create for you.

For example, Sygnia (JSE: SYG) recently gave us a return of 48% in our Real Wealth portfolio. And its dividends that accounted for nearly 30% of that return!

So, you can see why it’s easy to love good dividend paying stocks.

Right now, I’ve got these two top dividend stock payers on my radar. So if you’re looking to add some income to your portfolio, then keep an eye on these two stocks…

Dividend Stock Payer to watch #1: A Perpetual Dividend Payer making money from SA’s renewable boom

Founded in 1888, Reunert (JSE: RLO) is a household name in South Africa – listing on the JSE in 1948.

It’s one the few companies that boast an incredible dividend track-record.

In its entire operating history, Reunert has paid dividends a whopping 195 times!

And it’s also grown dividend pay-outs over the past four years.

Why do I think this trend continue?

Well, it’s no secret that SA’s is experiencing tremendous growth in green energy solutions.
In fact, according to an estimation by Eskom, privately owned solar installations doubled in 2023.

Reunert benefits because it owns Terra Firma – a provider of commercial rooftop, parking, and ground mount solar PV systems between 200kW and 100MW.

Then, Renuert’s also involved in the battery storage space through BlueNova – a specialist in developing and manufacturing energy storage solutions, with a specific focus on Lithium Iron Phosphate batteries.

South African energy finance specialist, Futuris Advisory, estimates that SA’s battery energy storage project pipeline could grow to about R53 billion – providing Reunert an excellent opportunity for profit-growth.

With rising electricity costs and so much instability in SA (and other African countries) power supply, large-scale agricultural, industrial, and residential installations can benefit from the cost-savings and reliability that Reunert’s renewable energy businesses can supply.

With over R1.1 million in cash, Reunert can further look to acquire renewable energy businesses, improve its product offering and pay dividends.

I’ve got this dividend stock payer on my Real Wealth radar and will issue a buy signal as soon as one last criteria is met.

#Dividend Stock #2 to add to your watchlist

If anything, this next big income stock is one I’m even more excited about. It operates in the trneding fintech sector and is making significant inroads with its digital payment software in Africa and beyond.  Just go here to read the complete Dividend Watchlist 2024, it’s 100% free.

PS. If you keen to get started right now investing in dividend stocks and starting your very own income wealth portfolio, thenmy special Real Wealth report, My Top five dividend dominators to buy now for 2024 will be a great place to start.

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