The Motley Fool

10 listed investment companies with yields of 6% or more

Listed investment companies (LICs) offer investors an easy way to get instant diversification and income in the stock market.

The good news for investors is that LICs come in all shapes, sizes and varieties. Want large cap exposure – there are several LICs for that. Want small to medium cap exposure, again there’s a number of LICs that will give you that. Want international exposure or an absolute LIC that can go long as well as short – well, there are LICs for that too.

These 10 LICs all offer the benefits of diversification as well as strong dividend yields – most fully franked too…

Company Share Price Market Cap Dividends Dividend Yield Franking Frequency
Aurora Property Buy-Write Income Trust (ASX: AUP) $5.44 $12.0 0.44 8.1% 0% Qtrly
Katana Capital Limited (ASX: KAT) $0.76 $34.0 0.06 7.9% 75% Qtrly
Bentley Capital Limited (ASX: BEL) $0.14 $10.2 0.01 7.1% 100% semi-annual
Cadence Capital Limited (ASX: CDM) $1.29 $348.7 0.09 7.0% 100% semi-annual
Westoz Investment Company Limited (ASX: WIC) $0.88 $114.3 0.06 6.8% 100% semi-annual
Djerriwarrh Investments Limited (ASX: DJW) $3.58 $782.6 0.24 6.7% 100% semi-annual
Contango Income Generator Ltd (ASX: CIE) $0.98 $79.0 0.065 6.6% 50% semi-annual
Watermark Market Neutral Fund Ltd (ASX: WMK) $1.06 $96.0 0.065 6.1% 63% semi-annual
WAM Capital Limited (ASX: WAM) $2.42 $1,421.0 0.145 6.0% 100% semi-annual
Clime Capital Ltd (ASX: CAM) $0.80 $63.3 0.048 6.0% 100% Qtrly

Source: Company reports, Capital IQ, Commsec

While the yields look very attractive, investors also need to consider a range of other factors including; whether the share price is at a premium or discount to the LIC’s net tangible assets, if the LIC has a large number of options outstanding (which can dilute the shares), what the historical performance has been like as well as management fees, if the dividend yield is sustainable and what the underlying assets are in the LIC.

What is particularly interesting is that the two-largest LICs, Australian Foundation Investment Co.Ltd. (ASX: AFI) and Argo Investments Limited (ASX: ARG) both offer relatively lowly yields of 4.2% and currently trade at a premium to the underlying assets.

The 10 LICs above may well be much better options.

How 1 Man Made 100x His Money After 50

Few know, that as Warren Buffett blew out the candles on his 50th birthday cake, he had just 1% of his current fortune. Think about it: At an age when most give up hope, Buffett was just getting started on the remaining 99% of his fortune. Goes to show you that it’s never too late for you to potentially get rich. Which is why we’ve gathered the strategies we learned from Buffett, distilled them down to 11 simple lessons, and put it in an exclusive report for you to claim. Just click here to learn more about this handy investing guide.

Motley Fool writer/analyst Mike King doesn't own shares in any companies mentioned. You can follow Mike on Twitter @TMFKinga

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

5 ASX Stocks for Building Wealth After 50

I just read that Warren Buffett, the world’s best investor, made over 99% of his massive fortune after his 50th birthday.

It just goes to show you… it’s never too late to start securing your financial future.

And Motley Fool Chief Investment Advisor Scott Phillips just released a brand-new report that reveals five of our favourite ASX stocks for building wealth after 50.

– Each company boasts strong growth prospects over the next 3 to 5 years…

– Most importantly each pays a generous dividend, fully franked.

Simply click here to find out how you can claim your FREE copy of “5 ASX Stocks for Building Wealth After 50.”

See the stocks now