LIC & LIT Listed Investment Companies (LICs) 2020

"Will MIR follow" and AMH. It follows a pattern and I think was a matter of when since it already applied to AFI.

A way of capital financing without going to the market. Last FY, AFI issued some 800,000 shares under the DSSP at nil cost to the company.

 

Now, after some strong coffee which causes my brain to occasionally work, there is another aspect I have been contemplating.

Is it possible given the current investing climate, some LICs will suspend DRPs and/or DSSPs?

And although this is thread drift what if the reduction in the last quarter's distributions from STW and VAS are an indication. I made a tongue in cheek remark a while ago about a 60% reduction ih distributions from ETFs. Last quarter's was an 80% reduction and I have heard at least one company which deferred its dividend has now cancelled it. A couple of banks have announced they have deferred dividends so it's still possible they could cancel them.

Little would surprise me now.

Happy and joyous Vegemite aren't I?

 

No more afternoon coffee for you, too much stimulation

 

Slurp. Aah, that's more like it.

Way betterer than decision making while quaffing on St Henri. Although 2000 was a good year at $10 a bottle by the case.

 

Too much coffee definately the cause.

Spent today at the coast, beautiful weather, nice meal, plenty of relaxation. Topped off with a trip to Bunnings. Shame you’re not able to enjoy the beautiful QLD weather.

 

A possible cause.

Or someone mentioning it was below the issue price which caused me to be curious. And I fell for it. Only by pure chance aka dumb luck, and my usual nervous state when I know I've done something I shouldn't have, was I able to get out while the going was good.

The online application is now working and done. However, given what has occurred with one particular State and how this bloody thing rolls across no matter what, I expect it could be a waste of effort. Should that eventuate, it'll be a thermos of coffee (of course,) parka, gloves and a cute beanie with the words Kin Frezin' emblazoned across it*, to go tromping through some of the open walking trails around here.

No point complaining about things as some apparently do. Adapt and get on with it.

As for Bunnings, no more sausages sangers here for quite a while unfortunately. I knew the decision of no onions on top would trash the brand.

* I appreciate some of the words in that sentence are unknown to many, especially Queenslanders,so please allow me to explain.....

 

QVE Chairman Peter McKillop said: “Despite the current uncertainty caused by COVID-19 on the economy and on corporate earnings, the Board is pleased to declare a final dividend for the financial year ended 30 June 2020 in line with last year’s Final Dividend of 2.2 cents per share fully franked. The Board is also announcing today that, based on current estimates, it intends to maintain its fully franked dividends to shareholders for the next two reporting periods.”

 

Anyone have any particular insight, apart from Geoff Wilson being bloody minded, as to why WAM would announce results today, and not pay the dividend until the end of November? And have the record date situated as late as possible as well.

Seems designed to encourage trading and escalation of the share price...

Have I just answered my own question?

 

Solvency test? Gives time to back out if it goes pear shaped but from memory when I held WAM it has always done this for some reason.

 

For LIC holders - if not already done.

MIR: 14 July
MLT: 23 July
AFI: 27 July
ARG: 17 Aug
PMC: 21 Aug
ALI: 31 Aug
DUI & AUI: Whenever.

 

I had a tax question around the DSSP and borrowing - I'll also check with my accountant.

My understanding is you borrowed X amount and all the dividends were set up as DSSP you could not claim the interest as deduction as no income received to offset interest against.

However.. what about if you
A - invested in a few LICS that offered DSSP and only took up say one DSSP receiving dividends for the other/s
B - invested in say AFI and VAS and took the DSSP for AFI

Could you then claim all the interest against the income (and any other income such as rent) or would you only be allowed to claim a portion given you are taking some of the income related to the borrowings as bonus shares and not income?

 

@APINDEX I reckon it would be proportional but I certainly could be wrong on that. Maybe scan through some of @Terry_w's tax tips as he did provide his view when a poster asked about what is essentially partial participation in DSSP and those could give you some pointers before you seek professional advice.

 

Where on earth are you getting St Henri from for $10 a bottle?!?

 

Way back in the days when I drank. All gone now though. Stopped drinking much about eight years ago when I realised alcohol and I were close to being BFF.

 

Hi @SatayKing you are right..

 

A one and only first probably.

Although the opinion was provided in respect of one particular company, I assumed the logic would apply to the situation you described @APINDEX. Only an assumption on my part though.

And will someone, preferably not me, tell a few bureaucrats to write so the intent is clear? Please.

Is the Queensland Border Deceleration Pass only valid for 7 days and needs to be renewed even though one may traveled into Queensland or does it mean you have 7 days from approval to enter the State? I've already made a couple of calls and have received conflicting information.

"Once your Queensland Border Declaration Pass is approved it is valid for a 7-day period."

Now while I don't reside in Qld, I've paid taxes all my life and some of my taxes go there. So......

It's my right to be a grump and I ain't going to give it up.

 

Well, well.

"It is also the intention of the Board to continue with the suspension of the Dividend Reinvestment Plan until further notice."

 

I think Victoria is in a bit of trouble,

 

Four Pillars Gin

Nwo abuto envstung............

 

Now about .... that anagram...what