LIC & LIT Listed Investment Companies (LICs) 2020

So you selected the balanced option for your investment portfolio?

 

DUI is please to report that even in these trying times, it will continue to pay a dividend. After all costs have been deducted and in line with its present payout ratio it is pleasing to be able to hand shareholders a total of $0.01c partially franked. The reason for this paltry amount is only CSL and SOL paid a dividend. The rest of the mob were complete failures in that regard.

See you in six months time after we have competed self-isolation in the boardroom surrounded by bottles of 21 year old port and an enormous supply of cigars. If it was good enough for Pepys then it's good enough for us. Tradition ya know.

 

It’s obvious isolation is beginning to takes its toll on the mental state of some PC members. Alternatively it could be that the absence of cash till the next distribution arrives is to much to bear.

 

May seem that way but not in my case. Isolation is good for reflection. Anyway still able to communicate with neighbours but not up close.

Tapping my foot though waiting for funds to arrive. He he.

And this current situation is a good test. Initially my reaction was one of "Oh, ###t." After the initial shock at the speed of the market going south I reasoned it was proper to put in place what has been said by me and others. Stick with your plan for these events. Stay in the market, keep putting in any spare cash despite what others may say and dismiss all the pundits who somehow emerge around these times.

From viewing a few comments on this forum, especially those relating to property, I seem to be in a more relaxed state than others.

It's all due to coffee.

 

Not sure if anyone has already posted apologies if they have and it's a dupe..

Which LICs are best placed to retain dividends in the current environment? - ETF Watch

 

Ditto. Very boring but that’s how it should be. Hence enjoying time outdoors working in the yard etc.

 

Update on market conditions and the QVE portfolio

 

And activist continues to increase their stake in QVE:

https://www.asx.com.au/asxpdf/20200406/pdf/44gqg78j35bw28.pdf

 

that's annoying

 

Why so?

 

Thanks for posting Redwing
Cash holding seems quite high at 20%

 

I doubt 1607 have current investors interests at heart

 

It depends on which investors they have interest in in their cold, cold hearts.

Of note as I have zero popcorn in the pantry I'd better settle for a coffee instead while waiting for money to come in so I can have some interest over whatever is happening in the market and keep it all to myself.

 

The reaction of many investors, some who are involved with shares and some who are not, to the present economic and health issues we presently face.

 

Actually I thought that was one of the better commentaries compared to most.

 

"Insurer QBE has hoisted the middle finger at the prudential regulator, which yesterday asked insurers and banks to defer paying dividends to shareholders during the coronavirus crisis.


In a statement to the stock exchange this morning, QBE said it “has carefully considered APRA’s new guidelines regarding the payment of dividends by financial institutions in the currently volatile COVID-19 economic environment” - and then decided to pay a dividend due on Thursday anyway.
Shareholders will get 27c a share.


If other insurers and banks decide to ignore the Australian Prudential Regulation Authority’s extremely strong advice, it may force the regulator to take stronger action such as banning dividends entirely for the duration of the pandemic.
QBE stock was down about 5% in morning trade."
Australia coronavirus live: parliament returns to pass stimulus measures as death toll hits 49 – latest updates

 

Part of the problem is us. We love dividend and I do to. I think as a result many companies have over time reacted to that demand instead of withholding a higher portion of their earning backs just in case.

So rather than putting the surplus income back into shares, a lot have likely spent that income and maybe more in the expectation they will continue at that level or even increase.

Now the brown matter has hit the aircon.

I know the arguments against dividends being paid but I still like them as companies are run by people who are subject to the same foibles and goofs as me. I'd rather get the dividend income so I can decide to redeploy if I consider it right for me. What others do or have done I cannot control and to some extent I'll end up in a leaking boat as they will. Provided I can bail out the water faster in my boat than they can....

 

I posted a link in the "Dividends" thread to the APRA letter to ADI's and Insurers.

Possibility of DRPs instead of cash? Buy back on market the equivalent of the DRP?

The mind boggles. Such fun to be had. Come tax time don't worry about the dividends, feel the franking credit.

Going to get very interesting.

 

Thanks for the coffee @Redwing. Now what are those talking heads chatting about? You should know by now I don't watch that stuff. Hurts my aged eyes and ears.

Yeah, yeah others and all that but it's all about me.