Even With Elon Musk's SpaceX Stock (SPCX) Down Below Its IPO Price, I'd Still Rather Buy This Dividend Stock in July
2026-07-19 22:38
•Selena Maranjian •The Motley Fool
•••• •• Axe Capital view
Why I'd Pick Dividends Over SpaceX Speculation Today
SpaceX’s fall below IPO price contrasts sharply with steady income and value in traditional dividend payers.
SpaceX’s recent drop from $193 at IPO to around $126 highlights the risk in ultra-growth tech plays, especially those without earnings visibility yet. This kind of volatility isn’t unheard of but can be punishing if you need steady returns. For South African investors looking for something less wild, the USD/ZAR is a natural anchor: currency swings often reflect global risk appetite and local stability. If you want to lean into equities, companies like Sasol or AngloGold Ashanti offer more tangible value and dividends compared to speculative U.S. space ventures. Interestingly, dividend stalwarts like General Mills in the U.S. — yielding over 6% with solid cost-cutting plans — reinforce the point: slow and steady with cash flow is valuable. Here at home, our banks, particularly Standard Bank, also serve defensive income well in uncertain times. The risk? If markets suddenly favour risk-on growth again, these steady plays might lag the rocket ships. this is just my opinion and not financial advice
Avoid speculative stocks like SpaceX for now and focus on dependable dividend payers in the JSE banks sector, especially Standard Bank and AngloGold Ashanti, while watching USD/ZAR for currency-driven entry points.
- Standard Bank
- AngloGold Ashanti
- USD/ZAR
- Renewed risk appetite driving speculative stocks higher
- Rand strengthening unexpectedly weakening commodity-driven earnings
7/10
SpaceX stock has declined below its IPO price of $193 to around $126 since its June debut. In contrast, General Mills offers a more attractive investment with a 6.3% dividend yield, 8.7% total shareholder yield, undervalued valuation metrics (P/E of 12.5), and defensive characteristics that would hold up better in a potential market downturn or recession.
This article was originally published by The Motley Fool and has been adapted here for Axe Capital Trading News.
Publisher: The Motley Fool
Author: Selena Maranjian
Categories: Rates, Equities, IPOs, Capital Returns
Tickers: SPCX, GIS
Sentiment: Mixed - Stock has declined significantly from its $193 IPO price to $126, representing a 35% drop. Described as a speculative investment with high volatility and downward trajectory. Offers attractive 6.3% dividend yield with 127 consecutive years of dividend payments, undervalued at P/E of 12.5 (below 5-year average of 15), engaged in $3 billion cost-saving initiative, and provides defensive characteristics suitable for economic downturns. Management confident in restoring profitable growth.
Keywords: dividend stocks, IPO performance, stock valuation, defensive stocks, recession-proof investments, shareholder yield, cost savings
Insights:
- SPCX: Negative: Stock has declined significantly from its $193 IPO price to $126, representing a 35% drop. Described as a speculative investment with high volatility and downward trajectory.
- GIS: Positive: Offers attractive 6.3% dividend yield with 127 consecutive years of dividend payments, undervalued at P/E of 12.5 (below 5-year average of 15), engaged in $3 billion cost-saving initiative, and provides defensive characteristics suitable for economic downturns. Management confident in restoring profitable growth.