LIC & LIT Listed Investment Companies (LICs) 2022

Given the amount of chatter on shares in other threads, it will be interesting to see if some will embrace a 10.25c dividend certainty over possible CG for the present. Or maybe for a number there will be a disenchantment with shares in general

The past does not repeat but we surely do I think.

 

I didn't even know that the US market had dropped 20% (nor do I care), but just shows just disinterested I am in my shareholdings that I hadn't even noticed. Does that mean I'm disenchanted and should pay more attention to the media? Some would suggest that's the case...

 

Happy to embrace a 10.25c dividend next month from WHF along with a .012 from QVE. With market currently in decline a stable dividend will suffice.
Went to a WAM conference in Brisbane yesterday, the first since covid, big decline in numbers due to covid I presume. Lots of re-assurance for the nervous nellys around current volatility & potential 'losses' over the next while. Still think it's odd that some long term investors are concerned by CG/loss over the income aspect. A good presentation overall along with a free lunch, notebook & pen .

 

Surely you could have argued for more notebooks and pens - one for your holding, one for a partners holding, a joint holding, SMSF holding, family trust holding, deceased estate holding. Could then save up money you would normally spend on stationary to spend on chicken breast - a favourite of this crowd (or so it seems)

 

That would have taken too long & I might have missed out on pigging out on the smoked salmon focaccia .

 

I'm quite happy with the WHF and QVE dividends. Having retired, sort of against my will, into the tail end of a pandemic, Russia v Ukraine, rising inflation for the first time in a generation, and a (presumed - it's only 7pm) change of government, I'm all for dividend stability from my LICs.

 

I sold the other day all my individual shares (cba, wes, qve, wbc) and bought VGS with the proceeds. I sleep much better now knowing that I'm well diversified. The remaining shares are aui, whf, arg and Sol. I'll keep those, but going forward everything goes into VGS. I aim for vas (lics) :vgs = 50:50.

 

Hi guys, some interesting discussion about WAM. Got me thinking about compounding dividends vs growth. Since it's inception in about 2000 WAM looks to have grown 162.8%. over the same timestamp AFI has grown about 185.2% and ARG 193.3%. whilst the growth has been better in the older LICs; my back of the envelope calcs suggest the compounding higher dividend for WAM puts its infront. Even using bearish dividends for WAM (4% annual dividend for AFI & ARG and a 6% yield for WAM) it's ahead.

Wondering what I have missed. Appreciate the fees are higher but it paid through 2008-2009 and payout ratios are currently less than AFI and ARG.

 

Past performance etc.etc. the big unknown.
I'd held WAM for quite a number of years & sold last batch a few months ago. My reason was that it consistently trades well over NTA & while this could be justified with the high dividends,my feelings were if they had a bad trot & had to drop this amount, how badly would the market react? Think they only have enough reserves for 12 mths of divs, whereas WLE which I hold has around 2.5 yrs of reserves, yes their div is less than WAM. AFI & ARG hold many years of reserves (someone here would know exactly, I'm too lazy to check).
I am far from an expert & I know people still happy to hold WAM & to add in current times, but just not for me. At a recent investor day conference I attended there were many happy holders there, I enjoyed the talkfest & free lunch .

 

I shall wait upon @Redwing to present a number of those charts he posts.

 

Yep, always a reality check.

 

Great info, thanks for the response.

 

Guys, anyone knows why such a terrible performance from SOL? It's more than 30% off the peak.

 

You know me too well, I did check but didn't post

 

There was a 10-for-1 share split in Washington H. Soul Pattinson (reminds me of my FMG days)

 

And this is why the share price dropped so much?

 

No. The split occurred 20 years ago if you look at the chart.

 

Inghams is floundering, a reminder for me to go shopping today for chicken breast

 

I appreciate these posts @Redwing

 

One other reason for holding / not holding a particular (LIC or other) stock, where the intention is for dividends paid out as cash, ie. retired, want the money, no longer compounding, is when it pays its dividends - especially if you are structuring a portfolio to make it easy for someone else to live on in the future.

The Wilson funds pay dividends way later than the other LICs - not sure why exactly - but they do lob money into the account from April through May on a standard 6 month reporting date of 31 December - depending upon which LICs you hold.

That can be quite useful in "smoothing" cash flow, although if that's the only reason you hold them, then it's probably not a good enough one. I have small amounts in a few of them - at the moment I'm liking the larger dividends, but I'm aware of the price performance. I may never buy any more, but probably won't sell these, and what happens happens, in terms of dividends.

WHF is also pretty useful in this regard, as also are the non-CBA big four banks, if you feel like holding them.