Good morning! Let’s get into it!

As I’m returning to invest this year in the stock market after I dedicated that time in investing in my own skills, I learned different methods despite not being very active in the market with my money, but never without my mind or studying. (I plan on investing over P2000 in NewGold ETF before the year ends, today I’m depositing around P500 and then around P2000 next month)

I learned such an investing method called Dollar Cost Averaging, simply put; not timing the market, one just invests on regularly ( i.e monthly) with a regular amount. It’s not the buy low sell high that people do, waiting for stocks to drop before buying. And in the BSE, there are a few companies you can actually pull that off:

Botswana Blue-Chip Stocks for Long-Term DCA

Botswana’s stock market is small but stable, led by banks, insurers, consumer goods, telecoms and property firms. We focus on large, established companies on the Botswana Stock Exchange (BSE) with a mix of dividends and growth. For a 3–5 year DCA strategy (consistent periodic investing), the key is stable earnings and dividends, moderate volatility, and solid sector fundamentals. Below we highlight the top candidates (banks, insurers, consumer staples, telecom, property) with strong track records and dividend yields. My analysis is based on recent market reports and company databse.co.bwstockanalysis.comstockanalysis.com.

• Market Context (2024–25): Botswana’s Domestic Company Index (DCI) rose ~3–5% annually (H1 2025: +3.5%bse.co.bw). Trading volumes have surged (total turnover +489% YoY in H1 2025bse.co.bw), reflecting growing investor interest. The finance and consumer sectors dominate trading – FNB alone accounted for 17.2% of H1 2025 turnoverbse.co.bw. Overall market yields fell (BSE dividend yield ~4.2% in mid-2025bse.co.bw), but individual blue-chips still offer attractive payouts. We target companies with consistent dividends and moderate growth in Botswana’s economic context (anchored by diamonds, healthy fiscal policy, rising tourism and telecom usage).

Banking and Financial Sector

First National Bank Botswana (FNBB) – Botswana’s largest bank by market cap (≈P13.9B) and turnoverbse.co.bw. FNBB has a long history of profits and dividend payments. It offers a 6.06% dividend yield (0.33 BWP annually) with semi-annual payoutsstockanalysis.com. EPS grew from P0.80 (FY2021) to P1.00 (FY2022) to P1.20 (FY2023)stockanalysis.com, and the bank’s strong market position gives stable earnings. FNB stock rose ~9–10% in the past year. Its large asset base and backing by FirstRand (South Africa) support moderate risk.

Absa Bank Botswana (ABBL) – The local arm of Absa Group, with market cap ~P6.4B. ABBL paid a 0.77 BWP dividend (yield ≈10.1%) in FY2024stockanalysis.com, one of the highest on the BSE. Its payout ratio was ~89%, supported by strong ROE (≈23%)stockanalysis.com. ABBL’s profits are solid (2023 EPS ~0.86 BWPstockanalysis.com) and 52-week share returns ~+9%. Absa’s diversified finance business and Botswana’s stable economy underpin a moderate-risk profile.

Standard Chartered Bank Botswana (SCBB) – International bank branch (P2.6B cap). SCBB yields about 12.1% (P1.03 BWP last dividend)simplywall.st, the highest of the major banks. This reflects a large payout ratio (~99%), and indeed 2023 EPS surged ~62% year-over-year (P0.94 vs P0.58)simplywall.st. While extremely high yield, SCBB’s dividend depends on continued profit growth; it is somewhat riskier (payout nearly equals earnings). Still, it remains a blue-chip for yield hunters under a DCA plan.

Letshego Holdings (LETS) – A pan-African microfinance group (P2.3B cap). Letshego has pivoted to growth and suspended dividends recently: no payouts since mid-2023stockanalysis.com. EPS have been recovering (2023 interim EPS ~0.086 BWP). We include it for growth: the stock fell ~–8.7% YTD, suggesting value. Over 3–5 years, resumed payouts or capital gains could reward patient investors, but it is higher risk than the banks.

Consumer and Retail

Sefalana Holdings – Botswana’s largest grocery-and-wholesale distributor (market cap ~P3.8B). Sefalana is a steady dividend payer (yield ~3.3%simplywall.st) and grew EPS 11% in FY2024 (P1.33 vs P1.20 in 2023)simplywall.st. The business is diversified (food, hardware, FMCG across Southern Africa), giving stable cash flows. Management has raised dividends steadily (recent final dividend P0.53 BWPsimplywall.st). Sales growth continues as Botswana’s population expands. For DCA, Sefalana offers a low payout ratio (~30%simplywall.st) and double-digit dividend growth (8.7% 5yr on SimplyWallSt) with modest yield.

Sechaba Brewery Holdings – Majority holder of Kgalagadi Breweries (Coca-Cola bottler). Market cap ~P4.1B. SECH pays a high yield (~9.2%)stockanalysis.com (annual dividend ~3.40 BWP). Brand loyalty (soft drinks) gives resilient demand; profits have been healthy. However, Sechaba’s recent dividends slightly exceed earnings (payout ~124%stockanalysis.com), so investors should be mindful if growth slows. The stock jumped ~+15% last year; with its franchise and yield, it is a strong pick for income plus moderate growth.

CA Sales Holdings (Casales) – A large fast-moving consumer goods distributor (listed in Botswana and JSE). It has delivered ~+22% 1-year returns (SWST data) and operates in multiple countries. CA Sales pays little or no dividend (focus on expansion), but is often touted for growth. We mention it as a growth-oriented option: its stock tends to appreciate with regional consumer demand. (Data: no yield cited; analysts note ~18% dividend growth but negligible payoutstockanalysis.com.) It is riskier (cyclical) but could complement dividend stocks in a DCA portfolio.

Telecoms, Utilities and Insurance

Botswana Telecommunications Corporation (BTCL) – The former state telecom monopoly (market cap ~P1.2B). BTCL now offers diversified telecom and digital services. Crucially, it has booming profits: 2024 revenue rose ~3.95% to BWP1.49B and net income jumped ~28% to BWP202Mstockanalysis.com. It resumed dividends in recent years; stockanalysis shows an annual dividend of 0.15 BWP (yield ~12.8%)stockanalysis.com – the highest yield on the BSE. The high payout (dividend yield) reflects steady cash generation. For DCA, BTCL offers aggressive yield and growth in earnings from telecom expansion.

Botswana Insurance Holdings (BIHL) – The country’s largest insurer (market cap ~P6.6B). BIHL provides life and general insurance through several subsidiaries. It pays a 4.9% dividend yield (1.12 BWP annual)stockanalysis.com. Recent results were mixed (2024 saw a net loss, albeit reported return on equity was normal historically), so yields dipped from prior years. Still, BIHL is a diversified financial play: it holds 40% of regional ABC Holdings (Access Bank) and other assets. Its yield is moderate but likely sustainable, making it a defensive choice in finance.

G4S Botswana – (Not in top table) The local arm of global security firm. G4S pays small dividends (~0.13 BWP/interim in 2019)hk.marketscreener.com; growth has been volatile. It can be a diversification pick but we consider it higher risk than the above; yield ~negligible relative to peers.

Real Estate and Property

Turnstar Holdings – A major property investor/developer (Game City and others; cap ~P1.3B). Turnstar owns offices, malls and apartments in Botswana and Northern SA. It has been profitable and recently returned to dividends. StockAnalysis reports a 0.20 BWP annual dividend (8.85% yield)stockanalysis.com. Turnstar’s 2024 net income was P135M, up ~20% yoy, and it has good occupancy in core assets. The company’s book value (P3.43/sharestockanalysis.com) exceeds its market price, suggesting undervaluation. As property rents remain stable and BOT housing demand grows, Turnstar looks well-positioned to deliver cash returns, making it a good DCA candidate in real estate.

RDC Properties – Another listed property firm (warehouses, logistics, offices). Lower yield (~3.4%)stockanalysis.com with modest growth. RDC did grow dividends (2024 DPS 0.08 BWP, +78% YoY) but its balance sheet has high debt (net negative cash ~–BWP2.5Bstockanalysis.com). We note RDC as moderate risk; it’s less attractive than Turnstar for high income.

New African Properties (NAP) – Owner of Nyati Mall and other assets (cap ~P2.4B). Yields ~8% (from SWST data) and steady rents, but dividends were cut in 2024. We mention NAP as a potential pick if occupancy rises, but it carries more cyclical risk.

Olympia Capital (Botswana) – Owns Spar and OK franchises, plus some real estate. Market cap ~P1.0B. Olympia tends to pay ~40t BWP (yield ~3–4%). Its small size makes it less compelling for a low-risk DCA plan, but strong consumer staples backing (Spar Botswana) gives some growth exposure.

Top DCA Candidates (Comparison Table)

Note: Dividend yields above use the latest declared dividends and October 2025 prices. Yields are drawn from company data and analysisstockanalysis.comstockanalysis.comsimplywall.ststockanalysis.comsimplywall.ststockanalysis.comstockanalysis.comstockanalysis.com. All these firms are large by BSE standards and pay regular dividends (or have clear growth trajectories). Conversely, higher-risk miners/explorers (e.g. Shumba, Minergy) and volatile retailers (e.g. Choppies) are not highlighted here, as they lack the stability and dividend history desired for DCA.

Conclusion: DCA Wealth Building Picks

For a 3–5 year DCA plan on the BSE, the banks (FNBB, Absa, SCB) and Botswana Telecom stand out for robust fundamentals and high yieldsstockanalysis.comsimplywall.ststockanalysis.com. Sefalana and Sechaba offer consumer-sector stability, with moderate-to-high payoutssimplywall.ststockanalysis.com. Turnstar provides real estate income, while BIHL adds insurance diversification. Together, these blue-chips balance income (via dividends) and capital growth. They are well-positioned to compound returns as Botswana’s economy grows. By steadily buying into these leading stocks over time, an investor can harness dividend reinvestment and market growth – a solid strategy for building wealth via consistent DCA.

Sources: Botswana Stock Exchange reports and company filingsbse.co.bwstockanalysis.comstockanalysis.comsimplywall.ststockanalysis.comsimplywall.ststockanalysis.comstockanalysis.comstockanalysis.com, plus market data from StockAnalysis and SimplyWallSt.