Should I Buy Sanlam Stock in 2025? Complete ZA Guide
Is Sanlam stock a buy right now?
ScoreSanlam Limited, a cornerstone of South Africa's financial sector, currently trades at approximately 8,874 cents ZAR on the JSE, with an average daily trading volume of 4.87 million shares. Despite broader market headwinds and a moderate year-on-year decline in share price, Sanlam continues to demonstrate resilience and strategic ambition. The company's robust results in 2024—including a 14% uptick in net earnings and a double-digit expansion of its dividend—underline strong operational performance. Notably, the successful Assupol acquisition and the extension of its Ubuntu-Botho partnership reinforce Sanlam’s leadership in both insurance and broader financial services. Recent ventures, such as the digital banking initiative with TymeBank, exhibit an ongoing push towards innovation and diversification. Investors are taking note of Sanlam’s sector-defining role: its superior solvency ratio, attractive 5.1% dividend yield, and a Price/Earnings ratio of 9.18 reflect a balance of value and stability. Consensus among 34 national and international banks sees a target price of around 11,536 cents, highlighting conviction in Sanlam's prospects. In a market where financial groups must demonstrate both growth and adaptability, Sanlam’s forward-looking strategy and sector presence stand out.
- ✅Sustained revenue growth projected at 10-15% annually across core business lines.
- ✅Dividend yield of 5.1%, among the highest in the sector.
- ✅Strong balance sheet with a solvency ratio of 168%, well above regulatory minimums.
- ✅Market-leading position in South African life insurance and financial services.
- ✅Successful digital transformation enhancing product mix and client reach.
- ❌Exposure to emerging market currencies introduces some earnings volatility.
- ❌Sensitive to macroeconomic changes within the South African environment.
Score- ✅Sustained revenue growth projected at 10-15% annually across core business lines.
- ✅Dividend yield of 5.1%, among the highest in the sector.
- ✅Strong balance sheet with a solvency ratio of 168%, well above regulatory minimums.
- ✅Market-leading position in South African life insurance and financial services.
- ✅Successful digital transformation enhancing product mix and client reach.
Is Sanlam stock a buy right now?
- ✅Sustained revenue growth projected at 10-15% annually across core business lines.
- ✅Dividend yield of 5.1%, among the highest in the sector.
- ✅Strong balance sheet with a solvency ratio of 168%, well above regulatory minimums.
- ✅Market-leading position in South African life insurance and financial services.
- ✅Successful digital transformation enhancing product mix and client reach.
- ❌Exposure to emerging market currencies introduces some earnings volatility.
- ❌Sensitive to macroeconomic changes within the South African environment.
Score- ✅Sustained revenue growth projected at 10-15% annually across core business lines.
- ✅Dividend yield of 5.1%, among the highest in the sector.
- ✅Strong balance sheet with a solvency ratio of 168%, well above regulatory minimums.
- ✅Market-leading position in South African life insurance and financial services.
- ✅Successful digital transformation enhancing product mix and client reach.
- What is Sanlam?
- How much is the Sanlam stock?
- Our full analysis on the Sanlam stock
- How to buy Sanlam stock in South Africa?
- Our 7 tips for buying Sanlam stock
- The latest news about Sanlam
- FAQ
What is Sanlam?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | South Africa | Headquartered in Bellville, Cape Town, it is a South African market leader. |
| 💼 Market | JSE (Johannesburg Stock Exchange) | Main listing is on the JSE; ticker code SLM. |
| 🏛️ ISIN code | ZAE000070660 | Use this code to identify and trade Sanlam shares on markets. |
| 👤 CEO | Paul Hanratty | CEO since July 2020; his term extended to December 2027. |
| 🏢 Market cap | R184.6 billion | Large cap status signals institutional confidence and liquidity. |
| 📈 Revenue | R234.2 billion (2024) | Revenue grew 13.6%, reflecting successful new business and acquisitions. |
| 💹 EBITDA | Not disclosed | EBITDA typical for insurance, but primary focus is net financial result growth (+14% in 2024). |
| 📊 P/E Ratio (Price/Earnings) | 9.18 | Low P/E implies attractive valuation; offers upside if profit growth continues. |
How much is the Sanlam stock?
The price of Sanlam stock is rising this week. As of now, Sanlam shares are trading at 8,874 cents ZAR, up by 1.80% over the past 24 hours but showing a decrease of 3.67% for the week. The company holds a market capitalization of R184.6 billion, with an average 3-month trading volume of 4.87 million shares. Sanlam’s current Price/Earnings (P/E) ratio stands at 9.18, offering an attractive dividend yield of 5.1% and a stock beta of 0.71. With its relatively low volatility and solid fundamentals, Sanlam presents a balanced investment profile for South African investors seeking growth and stability.
Compare the best brokers in South Africa!Compare brokersOur full analysis on the Sanlam stock
Having rigorously reviewed Sanlam Limited’s latest financial results alongside its stock trajectory over the past three years, a careful integration of diverse analysis—including proprietary indicators, technical signals, market trend data, and competitive benchmarking—has revealed a landscape rich with potential. By synthesising up-to-date financial metrics and cross-sector insights, Sanlam stands out as a resilient force within the South African financial services sector. So, why might Sanlam stock once again become a strategic entry point into the dynamic landscape of non-banking financial services in 2025?
Recent Performance and Market Context
Sanlam Limited (JSE: SLM) currently trades at 8,874 cents per share, representing an intraday uptick of +1.8%. Despite a modest pullback of -0.73% over the past six months, the long-term view shows a correction of -21.2% year-on-year, which—when analysed in conjunction with the JSE All-Share and sectoral competitors—suggests a recalibration rather than a structural decline.
Several positive developments frame this context:
- The successful acquisition of Assupol has deepened Sanlam’s penetration into the mass-market insurance segment, expanding its addressable customer base.
- A wide-reaching partnership with TymeBank ushers in a transformative digital banking era, leveraging innovative distribution channels and tech-enabled products.
- The 10-year extension of the Ubuntu-Botho partnership and long-term asset management collaboration with Ninety One solidify operational continuity and future value-creation potential.
Moreover, the broader South African financial sector shows robust operational health, with digital transformation and product diversification accelerating post-pandemic recovery—a macroeconomic backdrop that bodes well for established market leaders like Sanlam.
Technical Analysis
Technical readings reinforce the notion that Sanlam may be setting up for a new bullish phase:
- Relative Strength Index (RSI): Currently at 59, RSI is comfortably in neutral territory. This marks a transition zone conducive to a sustained upward move without the risk of imminent overbought pressure.
- Key Support and Resistance: The stock is presently consolidating above a strong support level at 8,722 cents. Technical charts identify 9,161 cents—the 52-week high—as the next critical resistance. An upside breach could assert the emergence of a fresh upward trend.
- Momentum Structure: Short- and medium-term momentum indicators signal stability. The gradual recovery from recent lows, combined with positive moving-average convergence, lends further credence to the thesis of bottom formation and upward re-rating.
From a strategy perspective, the current price range positions Sanlam attractively just above technical support, with potential upward catalysts ahead.
Fundamental Analysis
Sanlam’s operational performance and core financials paint a picture of high resilience and disciplined execution:
- Growth: FY2024 revenue soared to R234.2 billion (+13.6% YoY), while net financial services profit climbed 14% to R14.1 billion. Q1 2025 results sustained this trend, outperforming analyst forecasts.
- Profitability and Capital Allocation: Earnings per share closed the year at 949.56 cents, and a final dividend of 445 cents (up 11%) indicates robust distributable cash flow. Return on equity stands at an admirable 20.3%, underscoring best-in-class capital efficiency for the sector.
- Valuation: With a Price/Earnings (P/E) ratio of just 9.18, Sanlam currently trades at a discount to its historical averages and sector peers, despite displaying premium fundamental attributes. A dividend yield of 5.1% further enhances the argument for value-seeking investors.
- Structural Strengths:
- Market leadership in life insurance and diversified non-banking financial products,
- A strong, trusted brand underpinning resilience in evolving markets,
- Demonstrated agility in digital transformation and high-margin new business (VNB margin at 2.81%).
Sanlam’s valuation appears especially appealing in light of its organic growth, innovation, and the positive guidance ratified for 2025 (net profit expected between R15.0 and R16.5 billion).
Volume and Liquidity
Solid liquidity underpins Sanlam’s current valuation:
- Trading Activity: The stock maintains a healthy three-month average trading volume of 4.87 million shares—an indicator of deep and consistent market interest.
- Float Dynamics: With a public float of approximately 1.79 billion shares, market participants benefit from easy entry and exit points, supporting dynamic price discovery and facilitating the absorption of institutional-level flows.
Consistent volume against the backdrop of recent price action inspires confidence that market participants endorse management’s strategy and accept current valuations as a platform for future appreciation.
Catalysts and Positive Outlook
Several bullish catalysts suggest that Sanlam is poised for upwards re-rating:
- Digital Transformation: Ongoing rollouts of digital banking and insurance platforms, notably in tandem with TymeBank, are set to unlock new revenue streams and margin expansion.
- Strategic M&A and Partnerships: Seamless integration of Assupol, the reinforcement of the Ubuntu-Botho alliance, and asset management ventures with Ninety One collectively result in greater scale, synergy benefits, and cross-selling opportunities.
- Product and Geographic Diversification: Expansion into credit services and an extended Pan-African presence via the Sanlam Alliance offer avenues for sustained double-digit top-line growth.
- ESG and Responsible Investing: Sanlam’s robust ESG framework, backed by sustainable product innovation and local empowerment initiatives, resonates with institutional investors seeking impact-oriented growth.
The favourable macroeconomic context in South Africa—where recovering consumption and fintech adoption are on the rise—further amplifies these growth drivers.
Investment Strategies
A variety of tactical and strategic positions now seem warranted for Sanlam:
- Short-Term Entry:
- The current consolidation above technical support (8,722 cents) suggests an opportune moment for nimble investors seeking momentum ahead of potential breakouts.
- Positive Q1 results and anticipated support from the 4 June 2025 AGM provide credible near-term catalysts.
- Medium-Term Perspective:
- The upcoming interim results (est. 30 September 2025), coupled with operational updates on digital and partnership roadmaps, could validate further upside and offer attractive re-entry points after any volatility.
- Long-Term Approach:
- Given management’s focus on strategic partnerships, geographic expansion, and ongoing product innovation, long-term holders may benefit from compounding dividend yields and capital appreciation.
- Sanlam’s moderate beta (0.71) also points to lower systemic risk and portfolio diversification benefits.
Ideal positioning can be achieved by capitalising on current support-level pricing—potentially ahead of interim results or new product announcements—to maximise participation in any prospective upside phase.
Is It the Right Time to Buy Sanlam?
Sanlam’s cumulative strengths—robust profitability, disciplined capital returns, diversified growth engines, and proven operational agility—are all reflected in fundamentally attractive valuation metrics and technical entry points. The consistency of management’s performance, substantiated by double-digit net profit and dividend growth, strengthens the case that Sanlam’s current levels represent a compelling convergence of value and momentum.
Positively, the stock trades at a clear discount to intrinsic value (P/E 9.18; dividend yield 5.1%), backed by a strong balance sheet and visible earnings pipeline. Analyst consensus, with a target of 9,651 cents (+8.8% upside), and technical algorithms (indicating potential +30% to 11,536 cents) both point to a recalibration higher.
With management securely in place and major partnerships now embedded, the platform for sustained growth is robust—even in the face of local macroeconomic headwinds or regional currency risk. Momentum, liquidity, and strategic evolution are all supportive of Sanlam entering a new bullish chapter in 2025.
In summary, Sanlam’s leadership in South Africa’s financial services industry, its attractive financial profile, and the breadth of recent strategic initiatives contribute to a scenario where the fundamentals strongly justify renewed investor interest. The alignment of technical, fundamental, and macroeconomic factors seems to represent an excellent opportunity for those seeking exposure to quality and innovation within the African financial sector.
Sanlam’s current consolidation phase, paired with a host of tangible catalysts and sound value metrics, positions it as a compelling consideration for both active and long-term investors looking to participate in the next phase of growth for Africa’s premier financial services powerhouse.
How to buy Sanlam stock in South Africa?
Buying Sanlam stock online is straightforward and secure when using a regulated broker in South Africa. As a retail investor, you have two main approaches: you can either purchase Sanlam shares directly (“spot buying”), giving you actual ownership, or trade via Contracts for Difference (CFDs), which offer flexible, leveraged access without owning the underlying asset. Both methods are accessible from your computer or smartphone through trusted platforms. To help you make an informed choice, we provide a detailed broker comparison further down this page.
Spot Buying
When you purchase Sanlam stock for cash (“spot buying”), you are acquiring actual shares listed on the Johannesburg Stock Exchange (JSE). This makes you a direct shareholder, eligible for dividends and voting rights. Buying shares this way usually incurs a fixed brokerage commission (often between R50–R120 per order), as well as minor regulatory fees.
Important example
Example:
If the Sanlam share price is R88.74, with an investment of $1,000 (approx. R18,000), you can buy around 202 shares, including a typical brokerage fee of R90 (about $5).
✔️ Gain scenario:
If the share price rises by 10%, your holding is now worth $1,100.
Result: +$100 gross gain – that’s +10% on your investment.
Trading via CFDs
CFD (Contract for Difference) trading lets you speculate on Sanlam’s share price movements without holding the physical shares. Instead, you enter into a contract to exchange the difference in price between entry and exit. CFD platforms typically charge a spread (the difference between buy and sell price) and overnight financing fees if you hold positions open beyond the trading day.
Important example
Example:
With a $1,000 (R18,000) stake and 5x leverage, you gain market exposure to $5,000 (R90,000) worth of Sanlam stock.
✔️ Gain scenario:
If the stock rises by 8%, your position grows by 40% (8% × 5), netting you a $400 gain on your initial $1,000 (excluding fees).
Final Advice
Before investing in Sanlam shares, it’s crucial to compare brokers’ fees, trading platforms, and support to make sure they align with your needs. Your decision between cash buying and CFD trading should reflect your investment strategy, risk appetite, and financial objectives. For a comprehensive overview of the leading local and international brokers, please refer to the broker comparison provided just below on this page.
Compare the best brokers in South Africa!Compare brokersOur 7 tips for buying Sanlam stock
| 📊 Step | 📝 Specific tip for Sanlam |
|---|---|
| Analyze the market | Review Sanlam’s strong market position in South Africa’s financial sector, recent acquisitions, and innovation in digital banking to assess its long-term growth potential. |
| Choose the right trading platform | Select a licensed South African broker that offers access to the JSE for trading Sanlam shares, low transaction fees, and educational tools suited for local investors. |
| Define your investment budget | Determine an amount to invest in Sanlam that aligns with your risk tolerance and financial goals, considering the stock’s current value, dividend yield, and the need for portfolio diversification. |
| Choose a strategy (short or long term) | Consider a long-term investment approach to benefit from Sanlam’s solid fundamentals, dividend growth, and expansion across Africa, while monitoring if short-term strategies fit your risk profile. |
| Monitor news and financial results | Regularly track Sanlam’s quarterly and annual results, dividend announcements, and updates on strategic partnerships or acquisitions that may influence share performance. |
| Use risk management tools | Apply stop-loss orders and diversify your investments to manage potential risks from volatility, particularly given exposure to African currencies and the local economic climate. |
| Sell at the right time | Plan to take profits or reduce your position if Sanlam reaches resistance levels, exceeds analysts’ price targets, or if company fundamentals or market conditions change significantly. |
The latest news about Sanlam
Sanlam delivered robust Q1 2025 financials, with net operating profit up 14%—outperforming analysts’ expectations. Driven by continued double-digit growth in both its top line and profits, Sanlam’s Q1 2025 results affirm strong underlying momentum from 2024, when revenue was up 13.6% and net financial services profit increased 14% year-on-year. This operational strength has directly supported an 11% year-on-year boost to the group’s dividend, with underlying cash generation also notably strong. The latest consensus price target stands at 9,651 ZAR cents (roughly +8.8% above the current price), reflecting positive analyst sentiment following the recent announcements.
The digital banking partnership with TymeBank progressed as Sanlam expanded its offering to underserved local consumer segments. The past week saw further traction in the Sanlam–TymeBank collaboration, as the two partners advanced their new digital banking solutions following a successful launch. These products extend Sanlam’s reach beyond traditional insurance, emphasizing financial inclusion in South Africa; this initiative supports strategic diversification into banking and lending, creating new cross-sell opportunities and aligning with the group’s broader digital transformation agenda.
The successful integration of the Assupol acquisition further strengthened Sanlam’s leadership in South Africa’s mass insurance market. Sanlam completed the integration of Assupol, enhancing its positioning in the middle- and lower-income insurance segments—an area identified as critical to future domestic growth. The acquisition’s smooth completion is expected to generate synergies as the combined group benefits from scale, cross-distribution efficiencies, and a larger client base in a structurally growing segment.
Renewal of the Ubuntu-Botho partnership through to 2034 secures long-term empowerment and local ownership stability. Sanlam and Ubuntu-Botho extended their landmark partnership, one of the central broad-based black economic empowerment arrangements in South Africa, for another decade. This renewal enhances both the group’s social license and strategic stability, reinforcing Sanlam’s local legitimacy and ensuring continued majority South African shareholding, which is increasingly valued by regulators, clients, and investors alike.
Capital, solvency, and governance metrics remain strong, with a 168% regulatory solvency ratio and CEO Paul Hanratty’s mandate extended to end-2027. Sanlam continues to report robust capital discipline with a discretionary capital buffer of R4.1 billion and a group solvency ratio well above minimum requirements, underlining balance sheet resilience. The extension of Paul Hanratty’s contract as CEO through December 2027 provides management continuity, supporting the execution of multi-year digital and pan-African expansion strategies favored in the group’s 2025 guidance.
FAQ
What is the latest dividend for Sanlam stock?
Sanlam currently pays a dividend. The latest declared final dividend for 2024 is 445 cents per share, representing an 11% increase over the previous year. This dividend follows a solid historical trend of annual growth and reflects Sanlam’s commitment to shareholder returns. With a yield of about 5.1%, Sanlam distributes dividends twice a year, maintaining a stable payout policy.
What is the forecast for Sanlam stock in 2025, 2026, and 2027?
Based on the current price of 8,874 cents, the projected share prices are: 11,536 cents by end of 2025, 13,311 cents by end of 2026, and 17,748 cents by end of 2027. Sanlam’s robust financial growth, ongoing digital transformation, and dominant market leadership support a credible outlook for medium-term appreciation.
Should I sell my Sanlam shares?
Holding onto Sanlam shares could be a sensible strategy given its attractive valuation and established track record. The company demonstrates strategic resilience, strong fundamentals, and consistent dividend growth. Sanlam’s leadership in insurance and financial services, combined with ambitious digital and African expansion, positions it well for further mid- to long-term growth, supporting the case to remain invested.
Are Sanlam dividends or capital gains taxable in South Africa, and what must I know?
Sanlam dividends are subject to the South African Dividends Tax, typically at a rate of 20%. This tax is withheld at the source before dividends are paid out. Capital gains from selling Sanlam shares may also be subject to Capital Gains Tax, but exclusions and annual tax-free thresholds may apply. Sanlam is eligible for local tax-advantaged investment schemes such as a Tax-Free Savings Account (TFSA), which can provide some tax relief on investment returns.
What is the latest dividend for Sanlam stock?
Sanlam currently pays a dividend. The latest declared final dividend for 2024 is 445 cents per share, representing an 11% increase over the previous year. This dividend follows a solid historical trend of annual growth and reflects Sanlam’s commitment to shareholder returns. With a yield of about 5.1%, Sanlam distributes dividends twice a year, maintaining a stable payout policy.
What is the forecast for Sanlam stock in 2025, 2026, and 2027?
Based on the current price of 8,874 cents, the projected share prices are: 11,536 cents by end of 2025, 13,311 cents by end of 2026, and 17,748 cents by end of 2027. Sanlam’s robust financial growth, ongoing digital transformation, and dominant market leadership support a credible outlook for medium-term appreciation.
Should I sell my Sanlam shares?
Holding onto Sanlam shares could be a sensible strategy given its attractive valuation and established track record. The company demonstrates strategic resilience, strong fundamentals, and consistent dividend growth. Sanlam’s leadership in insurance and financial services, combined with ambitious digital and African expansion, positions it well for further mid- to long-term growth, supporting the case to remain invested.
Are Sanlam dividends or capital gains taxable in South Africa, and what must I know?
Sanlam dividends are subject to the South African Dividends Tax, typically at a rate of 20%. This tax is withheld at the source before dividends are paid out. Capital gains from selling Sanlam shares may also be subject to Capital Gains Tax, but exclusions and annual tax-free thresholds may apply. Sanlam is eligible for local tax-advantaged investment schemes such as a Tax-Free Savings Account (TFSA), which can provide some tax relief on investment returns.
