DallE
TL:DR: There are some great yielding ETFs with solid dividend yields (DY) for those wanting income.
Here at the Just One Lap HQ we love dividends. It feels like free money that finds its way into your account for you to spend as you wish, great if you’re needing income. For the rest of us not needing the income, the best response is to simply take the dividends and reinvest them, boring but efficient.
With this is mind we pulled the list below of the best dividend paying ETFs, but a word of caution. The numbers are historic for the previous twelve months and the payouts may be different in the future resulting in lower (or maybe higher) dividend yields. But the list gives a good indication of where to expect higher dividend yields and by clicking on the ETF code you’ll be taken to the ETF data page with more details on frequency of dividends.
What is dividend yield (DY)?
The last twelve months of dividend as a percentage of the ETF price. So a 9.5% DY means you got 950c in the last year on a R100 investment in that particular ETF.
But what of tax?
Dividends are taxed at 20% dividend withholding tax (DWT). The yield as below is the amount before tax is deducted and SARS takes it directly from the payment, so you get the dividend after tax.
However, REITs and Bonds pay dividends as income so the dividend is paid with no DWT deducted but the dividend is then added to your income and taxed accordingly.
Of course buying within a tax-free account means no tax on the dividend regardless.
So the list
No surprise that bond and REIT ETFs make up the top contenders for best dividend yield, but there are a few equity ETFs sneaking in with decent yields. They of course will have more volatile yields and more potential for capital loss in the short-term.
This is a chunky list with some great yields and potential for investors seeking income from their ETFs.
Last quick point, we are only showing ETFs with a DY of over 3%, below that a simple Top40 will almost give you that yield.
* As at close 02 September 2025
ETF blog
At Just One Lap, we are big fans of passive investment using ETFs. In this weekly blog, we discuss ETFs on the local market and the factors you need to consider when choosing an ETF. If you have wondered how one ETF differs from another, this is where you can find out. We explain which index each ETF tracks, what type of portfolio could benefit from holding each ETF, and how the costs will affect your bottom line.
