LIC & LIT Listed Investment Companies (LICs) 2022

Yep apologies I think you are right. I couldn't see anything RE franking in the fact sheet, which was as far as I was willing to look.

 

Keen to see how things pan out in the near future, prices are dropping whilst many companies respectively are increasingly dividends, we may be looking at 6% plus gross yields in the not too distant future, will make the averaging in a touch more palatable!

 

Based on the last three distributions and the price at the beginning of May it is 4.36%.

The last distribution contained a CG component as per this.

https://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=02506458

 

Oops. To clarify that % does not include franking or any other component.

 

6% gross would be good to counter inflation ... ! but hard to find sustainable 6% with moderate risk this days.

 

ASX200


Still strutting

 

So funny

 

1992 from memory - it was a while ago now. I worked for them for 25 years and was one of the 4000 people they retrenched in the previous 6 months (just reading their profit announcement this morning... this was a situation I'd been trying to engineer for a while, so I was actually happy about it ) - so they're doing a lot to cut costs and try to polish out the scratches and tarnished parts of their image - and this will continue for some time.

They're not going broke anytime soon, and we're back to dividends as normal with the banks almost, but I'd take 4% in ARG over 5% in Westpac if I was interested in longevity and sleeping at night. Remember that not so long ago the gubbermint "strongly suggested" that the banks not pay dividends at all during the COVID crisis - and some, Westpac included (as they've been under the gun of various regulators for a long time and didn't want any more heat, I expect) took that advice and didn't pay a dividend at all... so it CAN happen.

But it all comes down to you and your circumstances - what @SatayKing does may be completely inappropriate D - we have to watch him at parties...) for you, when it comes to investing.

From where I'm standing, you appear to be overweight the financial sector.

And BTW (that's "by the way", not a stock code... ) if you buy WAM (or anything) at $X.XX and two days later it's trading at $X.XX - 5%, a serious investor, certain of their initial choice, wouldn't be concerned, absent some piece of news that caused the fall. Your WAM example was only 4%. Meh...

If it went down 10%, then yes, you should act... and buy more. (see the italicised/bold statement above)

Good luck.

 

The continual clucking in the chook pen v the sloth approach.

As for inappropriate, I try.

 

I agree I am overweight in financial sector particularly banks but couldn't find a single LIC that could give out except Wilson regular high yield dividend in past (above 6% is what i prefer). I am not worried about Wilson at the moment and my remaining fund is either for BHP (around $38 - $40 -pre-divestment) or ANZ (around $22) or VAS (around $82) or property if it crash (unlikely even though everyone thinks that way) whichever I see more value... based on future dividend.

co-incidentally out of all stock i hold WBC is the only green today and one biotech

 

There needs to be a sticky for FAQ in the investchat section of this forum. The whole "dividends/yield are irrelevant" debate has been done to death many times. In a nutshell - you can sell shares to create your own dividend. There are good reasons for this (potential tax efficiency, control of timing etc.). There are bad aspects to this (psychological negative effect of selling vs. never selling, positive effect of big juicy dividends popping up in your account).

Personally dividend yield plays no part in my decision other than there being one for debt recycling reasons.

 

It's individual Choice and at what age you have to chose which option is better for you.

If you are in your 80s then sure selling stock / asset works for some as they sitting on few million AFI while if you are in 30s then dividend might help to get more income in so you can invest in other products...IMO.

 

I take it from what you have posted @Ross36 you are accumulating through continually buying and not via a reliance on dividends in order to fund further acquisitions. If so, it is probable that aspect may have been overlooked by some others.

 

Mind set thing @pippen which can change over time.

 

This is true - but you can make an argument that you're better off selling shares and buying than reinvesting dividends if you use tax loss harvesting. Now is a good example, pretty much all indexes are down. You can sell a parcel from one that was acquired at a higher price than now, rebalance into another one of your indexes, and claim the tax loss. This is something you can control to some extent (timing issues acknowledged). It also may have psychology benefits in that you feel like you are doing something active during a market drop. This is an example of how selling shares to reinvest can be superior to dividends where you have no control of the money you receive or timing.

Again - not saying the classics like AFIC or ARG are bad, they are very good. But if you're chasing high yield funds you need to ask what's the catch and is this any safer than topping up the yield from 4% to 6% yourself by selling.

 

Personally I disagree with this for most situations. What else are you investing in that a relatively small dividend will help with? In your 30s you are likely near your peak earning years, why take a dividend and pay tax on it? If I invest in a fund I do so purposively - and for life. I therefore assume they can do better with my money than I can. So while accumulating why would I want the money back? Let the businesses keep the earnings and reinvest it, I'll check back in 20 years when I'm retired and start thinking about selling down. Until then keep using my money to make you money.

 

There was a good discussion on ASX listed small value and growth, eg QVE, MIR in this thread earlier in the year. (starting about here Listed Investment Companies (LICs) 2022 [LIC & LIT])
@Zenith Chaos @Anne11 @monk @mistercoffee @dunno
It's been interesting to see the difference in performance in the two over the last few months ~+3% for QVE vs ~-18% for MIR (pretty much played out as you would expect it should for value and growth - all in hindsight of course) For what its worth I still hold both, and they are a small part of my overall portfolio which is predominantly low cost, low turnover market cap weight, with a significant home bias tilt.

 

Whitefield is up today isn't it? Announcement wise, that is...

 

10.25 cents fully franked same as last year

 

Thanks - I was just about to go looking!

No suprises there...