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2 High-Yield Stocks to Buy in October (Hint: Bristol Myers Squibb Is One)

2026-10-07 23:15 •Reuben Gregg Brewer •The Motley Fool Positive Axe Cap view: Selective •Rates•Equities•Earnings•Capital Returns •BMY•CELGR•O

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Why High-Yield US Stocks Matter for Rand Investors

Appreciating select foreign dividend payers can complement rand exposure amid local uncertainties.

South African investors often overlook solid high-yield foreign stocks when the rand is volatile. Bristol Myers Squibb (BMY) offers a 4.2% yield backed by a deep drug pipeline despite patent cliffs ahead, while Realty Income (O) pays a hefty 6% dividend with decades of payout growth. The reality is our local market’s yield often can't keep pace with US dividend payers when the rand weakens. BMY and O trade at valuations reflecting short-term worries, but their cash flow resilience is convincing. Of course, a sudden rand recovery or US rate spikes could spoil this trade. Still, for anyone balancing rand risk and income generation, these picks provide ballast. Think of it as a way to diversify income streams beyond the JSE, especially when South African interest rates may edge higher and pressure local bond yields. this is just our opinion and not financial advice

How I would invest

Add BMY and O selectively on rand weakness to diversify dividend income streams outside the JSE. Trim local yield plays like Capitec or Sanlam if the rand rallies sharply.

What I would watch
  • Bristol Myers Squibb (BMY)
  • Realty Income (O)
  • USD/ZAR
What could go wrong
  • Rand strength reducing foreign yield attractiveness
  • Rising US interest rates impacting REIT valuations
How strongly I feel

6/10

The article recommends two high-yield stocks for October: Bristol Myers Squibb (BMY) offering a 4.2% dividend yield despite facing near-term patent expiration challenges, and Realty Income (O) with a 6% yield and 31-year dividend increase streak, though facing headwinds from rising interest rates. Both stocks are trading at attractive valuations due to short-term concerns, presenting opportunities for long-term income-focused investors.

Our take is based on reporting first published by The Motley Fool.

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