Listed investment companies are a smart way to invest conservatively for investors with little or less expertise to invest directly into ASX listed securities and a good way to achieve market diversification. They are a subset of listed managed investments, lets discuss a few of them under this category.
NAOS EMERGING OPPORTUNITIES COMPANY LIMITED (ASX: NCC) – The group’s revenue was down 17% to $6.45 million as at June 30, 2018. Amid the rise in operating expenses, against the profit after tax of $ 4.58 Mn in FY17 the company posted a profit after tax for the year 2018 of $4.12 Mn. However, with the record date of October 09, 2018 the company declared a fully franked dividend of 3.50 cents per share and it will be payable on October 24, 2018. Which for the full year is a total dividend payment of 7.5 cents per share, representing a yield of 5.78%. However, on a Y-o-Y basis, dividend rise of 3.6% suggests that that the company has adequate capital to maintain a strong balance sheet to support future growth. The stock has surged by 1.55% to $1.310 on October 4, 2018. It has undergone a performance change of -11.34% over the last one year.
NAOS EX-50 OPPORTUNITIES COMPANY LIMITED (ASX: NAC) – The group’s revenue from ordinary activities was up by 178% to $6.25 million in turn increasing the profit after tax by 259% representing a better financial year. Compared to 11 percent and 8 percent in the first half of the year for the last three to four months the company’s two key funds did practically zero. At the end of the year the market prices surged making the stock one of the most expensive stocks in the market. In the Australian listed companies outside of ASX50, the company has a high concentration and conviction style of investments. With available cash and cash equivalents at the end of the year at around $4.09 million and no debt limit the company represent a strong balance sheet. Naos also has a consistent dividend profile over the past 5 years. The stock was down by -1.478% to $1.000 on October 4, 2018. It has undergone a performance change of 0.50% over the last one year.
WAM CAPITAL LIMITED (ASX: WAM) – The WAM Capital investment portfolio rose 2.7% in August. The company has made an off-market conditional takeover bid for WDE of 99¢ per share, which is a 15 per cent premium to the last traded share price of 86.7¢ on 29 August 2018 and a 3 per cent premium to the 96.12¢ net tangible asset value. The company raised $66.2 million through dividend reinvestment plan, during the 2018 financial year. And the operating profit before tax for June 30, 2018 was at $166.9 million indicating better efficiency in the core business of the company. WAM capital also has a consistent dividend profile over the past many years and has paid $2.1525 per share in fully franked dividends since inception in 1999. The stock has surged by 0.402% to $2.500 on October 4, 2018. It has undergone a performance change of -1.58% over the last one year.
WAM LEADERS LIMITED (ASX: WLE) – An increase of 155.7% on the previous year of $39.3 million, WAM Leaders announces a record operating profit before tax of $100.5 million and compared to the $29.2 million in FY 2017, a record operating profit after tax of $74.6 million in FY 2018 representing a strong profit growth of the core business. An increase of 66.7% on the previous year, the Board announced a fully franked full year dividend of 5.0 cents per share with the fully franked final dividend being 2.5 cents per share. Because of a successful option capital raising WAM Leaders raised $377.3 million during the period. The stock has surged by 0.417% to $1.205 on October 4, 2018. It has undergone a performance change of 8.60% over the last one year.
MILTON CORPORATION LIMITED (ASX: MLT) – Compared to $122.0 Mn in FY2017, reported an underlying operating profit after tax at $128.8 Mn. NTA was recorded at $4.18 per share after tax, for which the company recently declared its monthly NTA and portfolio report for August 2018 wherein Milton has a consistent track record of paying decent dividends over the years. The annual dividend yield for the current year is 4.13%. Milton has been committed to generating stable dividend income for the shareholders and a major part of the shareholder return in the Australian stock market comes from the tax effective dividend income. The group’s revenue was up 6.4% to $136.9 million as at June 30, 2018. The stock had a flat price change to $4.600 on October 4, 2018. It has undergone a performance change of 2.22% over the last one year.
The Income available from dividends remains attractive for many investors.
We take a look at the best yields on the market and assess what they say about a company’s prospect.
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