3 of the Best Dividend Stocks to Buy in October 2026
2026-10-06 16:30
•David Jagielski, Cpa •The Motley Fool
•••• •• Axe Cap view
Steady Dividend Plays for a Cautious October
In a high-valuation year, income stocks can offer a safer harbor for investors seeking stability.
With global markets stretched, South African investors tuning into yield might want to look at dividends through a local lens. Pfizer’s 6.3% yield at a bargain valuation of 10 times earnings hints at value for those patient enough to weather pharma’s patent cliffs. Though no local Pharma giant matches Pfizer’s profile, the broader consumer and healthcare sectors on the JSE remain volatile. Realty Income’s stable payout and monthly dividends present a compelling yield story, but its US-centric real estate exposure means rand depreciation can impact returns unpredictably — something to watch against USD/ZAR swings. ExxonMobil’s steady dividends and energy relevance should not be overlooked, especially as global energy prices influence the rand and local fuel-related counters like Sasol. Buy Pfizer and Exxon on dips, watch Realty Income for entry points if USD/ZAR stabilizes. this is just our opinion and not financial advice
Buy Pfizer for yield and value, add ExxonMobil for energy exposure that aligns with rand strength, and watch Realty Income if USD/ZAR firming offers a safer entry.
- USD/ZAR
- PFE
- XOM
- Pfizer’s patent expirations erode cash flow
- Rand weakens sharply against the dollar
- Energy prices fall, dragging ExxonMobil and Sasol lower
6/10
As valuations remain high in 2026, the article recommends three dividend stocks as safer investment options: Pfizer (6.3% yield, trading at 10x earnings despite 35% decline), ExxonMobil (2.5% yield, up 37% this year with decades of dividend growth), and Realty Income (6.1% yield with monthly payouts and strong stability).
Our take is based on reporting first published by The Motley Fool.