Collecting Offshore Dividends: How Global Brands Pay Investors in Dollars & More!

Earning passive income in offshore currencies has become one of the most attractive ways for South African investors to diversify their portfolios.

By investing in dividend-paying global companies listed on international stock exchanges, investors can collect dividends in stronger currencies such as the US dollar. This not only provides exposure to the performance of some of the world’s most influential businesses but also creates a hedge against the weakening rand, allowing local investors to benefit from global growth while strengthening their long-term wealth position.

Global Brands, Everyday Use, and Dividend Rewards

Many of the brands we interact with daily, often without realising it, are owned by some of the largest dividend-paying companies globally.

Think of Apple, with the iPhone in your hand, or Microsoft, powering countless workplaces with its software suite. Coca-Cola has been a household staple for decades, while Yum! Brands owns KFC, Pizza Hut, and Taco Bell, franchises deeply entrenched in South Africa and beyond.

By investing in these companies, investors effectively participate in the profits generated every time a consumer across the globe buys a product or service from these brands.

Walmart is another great example. While the company continues to expand its presence into South Africa, it has already been rewarding local investors for years through dividend payments in US dollars. Walmart earns profits from sales in 19 countries, including the US, and those profits flow into the portfolios of South African EasyEquities investors in the form of regular dividends -
illustrating the power of global diversification: investors are not only exposed to a company’s growth in one market, but also to its broader international operations.

Reliable Dividend Growers

What makes many of these companies even more appealing is their track record of increasing dividends year after year. Coca-Cola, for instance, is a “Dividend King,” having raised its dividend for over 60 consecutive years.

Microsoft and Apple have both steadily grown their dividend payouts over the past decade, while companies like Walmart also form part of this group of reliable dividend growers. These increases mean that investors are not just earning passive income today but potentially enjoying rising income streams into the future, a critical component of building long-term financial independence.

Everyday Essentials, Worldwide Earnings

Household brand pioneers like Unilever and GSK plc are more than just global conglomerates behind everyday products such as soap, toothpaste, and medicines; they are also listed across multiple international markets, including the US, UK, and Europe. This global footprint allows them to generate earnings from diverse regions, reducing reliance on any single economy. For investors, this could translate into reliable passive income in stronger offshore currencies, while benefiting from the stability of businesses that remain in demand regardless of economic cycles.

Key Dates Every Dividend Investor Should Know

It’s also important for investors to understand the mechanics of dividend payments. Most US-listed companies, including Apple, Microsoft, Coca-Cola, Yum! Brands and Walmart pay dividends quarterly. This could provide investors with a more frequent and predictable income flow compared to many local companies that pay semi-annually. 

To qualify for a dividend, investors need to pay attention to key dates: the last date to trade (the day before the ex-dividend date) determines eligibility for receiving the dividend, while the payment date is when the cash officially lands in your portfolio. Staying informed about these dates ensures that you don’t miss out on valuable offshore income opportunities.

Sources – EasyEquities.

Follow Cay-Low Mbedzi

@caylow_SA

Government bonds offer a reliable way to earn fixed income by lending money to the government in exchange for regular interest payments. 

Dividends are one of the many key components of investing, representing a share of a company's profits distributed to its shareholders. 

Special dividends, also known as extraordinary dividends, are one-time payments made by companies to shareholders due to specific financial events, like windfall profits or asset sales.