There are lots of businesses to invest in on the ASX, many hundreds of them.
However, there is also a group of businesses called 'listed investment companies' (LICs) that trade on the ASX too.
The main aim of LICs is to invest in other shares on behalf of shareholders. Some LICs like Australian Foundation Investment Co. Ltd (ASX: AFI) have been around for many decades. Others are newer but are just as worthy of an investment.
Here are two LICs with good performances and pleasing dividend yields:
Whitefield Limited (ASX: WHF)
Whitefield has been around since 1923. It has been one of the highest-performing LICs that focus on large-cap shares like Commonwealth Bank of Australia (ASX: CBA), Wesfarmers Limited (ASX: WES) and Telstra Corporation Ltd (ASX: TLS).
I like Whitefield and believe that it's one of the best LICs to own if you want exposure to blue chips.
It's currently trading with a trailing grossed-up dividend yield of 5.27%
NAOS Absolute Opportunities Co Ltd (ASX: NAC)
This LIC is run by Naos Asset Management. The team like to focus on much smaller businesses than most other investment managers.
The hunting ground of this LIC is for shares with market capitalisations of around $200 million to $400 million.
Typically, its portfolio aims to have around 10 to 15 positions, so it can be a very concentrated portfolio at times.
The investment strategy is working because, before fees, the average return per annum has been 18.14% over the last two years.
It's currently trading with a grossed-up dividend yield of 7.14%.
Foolish takeaway
I like both LICs, but it's hard to say when they are a 'good' buy because of how reliant they are on their own portfolios doing well. That's why I'd be happy to have each of them as a small part of my portfolio and let it grow over time if they continue performing well.
