LIC & LIT Listed Investment Companies (LICs) 2020

It sure would be easier to follow some of the conversations.

 

so i looked around for how to track my current and future dividend income.

Sharesight has a feature called "future income report" which is for subscription only unfortunately..

Information below for anyone wanting to know

Future Income Report | Sharesight Help

 

Should also just rename this thread to "General coffee shares/funds investing discussion".

 

Guys, happy NY to all of you

I've got more funds to DCA into the share market however all my favorite LICs offer dividend yield of less than 4%. Hence I looked at WES which seems really interesting to me and yield is 4.3%. However I've noticed that it had a huge run up in price over the last year, something like 30%. Would anyone be able to offer any insight into this and possible risks of buying into WES atm?

If it's not too much to ask, I'd also be interested to hear your views on risks of buying WBC atm? Seems interesting to me because of a decent drop lately and very high div. yield.

 

HNY to you too mate, firstly very brave of you to discuss direct holdings in an LIC thread!
Banks have fallen out of favour, with WBC latest muck up and uncertainty around the fine. WES after the COL split seems to have gone from strength to strength and also my opinion is people were hesitant to buy WES during the last/latest housing downturn. Now we are out the other side of it, market has recovered and confidence has returned.
I’ve decided to focus on/core holdings VAS, VGS, WHF, MLT, then satellite, dca the same four stocks every quarter. If excess funds become available and I feel adventurous, WBC would definitely be a buy for me.

 

Thanks mate!

We plan to live on dividends so I try to buy the same LICs as you (they are the core for us too) but only if they offer 4% or better yield. Milton seems to be closest to it atm.

 

Yes, discussion of coffee and alcohol allowed but direct shares is really pushing the boundaries. Might have to report this one to the moderator.

 

WBC dividend may not be sustainable in the short term. They are waiting on the fine + recent capital raising will dilute eps? + big4 earnings under pressure wIth decreasing net interest margins + I think APRA increased their capital requirement

 

Can we have a new “off topic” thread each week?

Just to keep the number of posts down to a manageable level .

 

Didn't I read above in the LIC threads that the old school LIC's seem to be reducing their Bank holdings in lock step with each other? Why would you pay for active LIC management if your own personal active management in buying WBC is going to negate their actions?

Generally, on direct stock holdings. I don't know anybody that has a good idea of what they are doing with direct shares who is the least bit interested in what others think. Probably very telling that there seems to be a lot of interest on the internet in people seeking each others thoughts or more likely confirmation about direct shares.

And that's all I have to say about direct shares.

 

In the same boat here, I’m still accumulating so I’m trying to take a longer term view. By this I mean WBC may be paying an X% dividend at the moment but this could be cut moving forward where as WHF maybe paying Y% dividend however I’m confident This will increase in the future. No doubt WBC will also increase over time. I would just sleep better at night with 250k on WHF as opposed to WBC. My opinion only

 

Nothing to report on the investment landscape. All chugging away I assume. Nothing to do or think about until money hits the accounts later this month and then only briefly. Decisions, decisions.

I shall refrain from mentioning anything about coffee. Oh dear, I just have so I'd better have another one. Then again it is all about me.

 

Remember that with WBC, all we have at the moment is a statement of claim from Austrac and ASIC or APRA, can't remember which, now sniffing around. The point being that it may take some time to resolve so the price will probably remain depressed for a significant period while the drama plays out. Also that, having just cut the dividend significantly, they will do a lot to NOT cut it again - because that would have another big impact on the price, but also, also, they will have a new CEO in time, and what do new CEOs do? Act quickly to clear out the garbage.

 

Good opportunity to accumulate if that’s your thing!
I will be topping up my satellite holdings as I believe the banks will continue to make and GROW profits for decades to come.

 

Re direct shares I remember Daryl Dixon’s words from years ago and why despite abundant knowledge and financial resources available to him he said he invested in Listed Funds because “he didn’t like unexpected surprises”. One only has to look at what happened with the banks in recent times! I personally have no desire to own direct stocks anymore as I also don’t like unexpected surprises.

Given the exponentially increasing pace of change / disruption around the world I think unexpected surprises will become increasingly more frequent. Even the older style LICs hamstrung by restricted turnover due to LIC Tax Status and a high level of embedded capital gains may struggle to keep pace with change? Although I continue to invest in LICs I do get a great deal of comfort in owning traditional index ETFs due to the fact that they are “self-cleansing”. That is, no matter what happens or how fast it happens the index by nature will automatically reflect these changes. Out with the bad / obsolete in with good / current, nothing to do.

I was going to try to add more but realised @dunno as usual nailed it in his post.

 

Purchased a heap of VAS yesterday. Stubbornly coming to the same conclusion as you awhile back especially from a psychological perspective. Funny in that holding excess Cash can create a certain degree of mental angst. Getting it invested ASAP remedies that. In “our circumstances” the SORR strategy was unnecessary and a poor decision.

 

From memory @Nodrog I think that you prefer to hold VAS in low tax super, is that correct?

 

If you could hit rewind would the 30 year old @Nodrog still find a place in his portfolio for the MLT, WHF, ARG, AFI of this world or would you be lumping it into a VAS VGS split and work on perfecting the home brew recipe?
I'm sensing a tiny loss of love for the LICs?

 

VAS in SMSF and personal portfolio. VGS more dominant in SMSF.