The Australian Foundation Investment Co. Ltd share price is at a record high

The Australian Foundation Investment Co. Ltd (ASX:AFI) has enjoyed a golden FY 2017.

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The Australian Foundation Investment Co. Ltd (ASX: AFI) share price hit a record high of $6 today as the listed investment company continues to benefit from relatively strong global equity markets over the year to June 30 2017.

The company's flagship fund has around $6.8 billion under management, which means it has little choice but to invest at the blue-chip end of the Australian equity market.

Its top four holdings include three of the four major banks in Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC) and National Australia Bank Ltd (ASX: NAB), with giant miner BHP Billiton Limited (ASX: BHP) the remaining top holding.

For the six-month period ending December 31 2016 the company posted a net profit of $118.3 million and paid a dividend of 10 cents per share on earnings of 10.4 cents per share. Its portfolio returned total growth of 8.6% over the period and has returned 7.2% per annum for the 10 years to December 31 2016.

It currently sells for 27x annualised earnings with a trailing 4% dividend yield, plus the tax effective benefits of franking credits.

Motley Fool writer Tom Richardson has no position in any company mentioned. The Motley Fool Australia owns shares in the NAB. We Fools may not all hold the same opinions, but we all believe that considering a makes us better investors. The Motley Fool has a . This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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