Dividend Increases Just in Time for December and January from JSE-Listed Companies

It's December, as we move through the festive season and head toward Janworry (January), several JSE-listed companies are increasing their dividends, in some cases by as much as 133%. 

Why Companies Increase Their Dividends

These increases often happen when companies strengthen their financial position or adjust how they allocate capital.

A change in dividend policy, improved cash flow, lower interest costs, or successful cost-reduction initiatives can all create room for higher payouts. When expenses fall or profits rise, management may choose to distribute more cash to shareholders. 

In some cases, companies raise dividends because they have become more efficient or reduced debt, freeing up additional cash. Others may have benefited from favourable market conditions or operational improvements that boost earnings.

For example:

• Famous Brands is increasing its dividend by 8% after the company saw its financing and borrowing costs drop by more than 20% during the period due to interest rate changes.
  • The upcoming dividend is expected to be paid in December 2025.
• Tiger Brands reduced its dividend cover from 1.75x to 1.25x, meaning the company has chosen to pay out a larger portion of its earnings instead of retaining more profits. Its upcoming dividend is 79% higher than last year’s payout, and the company will also be paying a special dividend.
  • Both the ordinary and special dividends are expected to be paid in January 2026.
• Datatec increased its upcoming dividend by 133% after changing its dividend policy in May to pay out 50% of its earnings per share.
• Meanwhile, Boxer Retail will be paying its first-ever dividend in line with its 40% payout ratio indicated in its pre-listing statement. 

Other JSE Companies Boosting Dividends

Other JSE-listed names increasing their dividends during this period include:

• Mr Price (up around 6%)
• Clicks Group increased by 14%
• We Buy Cars and Hosken Consolidated Investments (both increasing by 20%).
• Naspers Limited increased its dividend by 110% year-on-year, with the prior year’s payout restated to reflect the share split for accurate comparison.

The last dates to trade and payment dates for these companies fall within December (Clicks Group in January), and shares bought on or before the last day to trade will qualify for the upcoming payout.

Conclusion

Dividends received in December can help cover festive season spending, while January payouts can ease pressure during a month that often feels heavier on the wallet. Investors who prefer not to spend the cash could use these payouts to diversify, top up existing holdings, or take advantage of market opportunities without needing to sell shares or add new capital.

EasyEquities also gives investors the option to reinvest the net dividend payout automatically. This feature allows dividends to be used to buy more shares without lifting a finger. For long-term investors, reinvesting could help compound returns, turning each payout into additional growth. Whether used for spending, saving, or reinvesting, increased dividends could offer flexibility at a time when many people need it most.

Sources – EasyEquities.

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