3 LICs I want to buy

Every LIC investor should be interested in these 3 LICs.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Australian share market is full of listed investment companies. Some are good, some are old, some are new and some are rubbish.

Not every LIC is worth an investment but I think these three are:

WAM Microcap Limited (ASX: WMI)

WAM Microcap is the newest LIC to be launched by Wilson Asset Management.

It's run by the same high-performing team but it focuses on the really small end of the share market.

The portfolio has already generated a 7.5% return since it listed at the end of June. I wouldn't be surprised to see WAM Microcap outperform the market significantly over the coming years.

WAM Microcap doesn't yet pay a dividend but I'm sure it will soon.

Clime Capital Limited (ASX: CAM)

Clime is a small LIC run by John Abernethy and his team.

I like Clime because it has a diverse investment approach of investing in ASX small caps, medium caps and large caps, as well as a few overseas shares too. The portfolio hasn't generated large returns yet but in time I think the new approach will make it a market-beater.

It currently has a grossed-up dividend yield of 8.05%, which is paid quarterly.

WAM Leaders Ltd (ASX: WLE)

WAM Leaders is another LIC run by Wilson Asset Management.

Its focus is on the shares in the ASX200, which hopefully means the returns are more consistent and its investments pay a larger dividend on average.

I'm not sure how the returns of WAM Leaders will compare to WAM Research Limited (ASX: WAX) and WAM Capital Limited (ASX: WAM), but I think all three will produce market-beating returns and WAM Leaders would be a good way to get exposure to some of the larger businesses on the ASX.

WAM Leaders is trading with a grossed-up dividend yield of 3.86%, but I expect this yield will soon be in line with the other WAM LICs.

Foolish takeaway

I'm excited to add shares of all three LICs to my portfolio, but I want to add WAM Microcap shares the most because I think it's the one that will deliver the biggest returns.

Motley Fool contributor Tristan Harrison owns shares of WAM Capital Limited, WAM MICRO FPO, and WAM Research Limited. 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.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »