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Djerriwarrh Investments Limited reports half-year result

Djerriwarrh Investments Limited (ASX: DJW) reported its half year result to 31 December 2017 this morning.

Djerriwarrh Investments is a listed investment company (LIC) that has been operating since 1989 and was listed on the ASX in 1995.

For the first six months of FY18 the LIC reported that the net operating result was down 1.9% to $16.4 million.

Revenue from activities for the half-year was $17.5 million, 8.7% higher than the prior corresponding period.

The interim dividend is maintained at ten cents per share. Five cents of this relates to prior years’ capital gains which the company has paid tax on, which means that some shareholders can claim a tax deduction in their tax return according to the company.

The dividend re-investment plan is in operating for this interim dividend and investors can utilise this to receive a 5% discount to the average selling price of shares traded on the ASX in the five days from the day the shares begin trading on an ex-dividend basis.

The company has calculated that net tangible assets per share before any provision for deferred tax on the unrealised gains or losses on the long-term investment as at 31 December 2017 was $3.36, before allowing for the interim dividend.

Djerriwarrh said that the portfolio return over the last six months was 7.2%, including franking credits it was 8.6%. The twelve month return was 8.9%, including franking credits it was 11.8%.

Djerriwarrh attributed the biggest contributors of its performance to BHP Billiton Limited (ASX: BHP), Westpac Banking Corp (ASX: WBC), Wesfarmers Ltd (ASX: WES), Rio Tinto Limited (ASX: RIO), South32 Ltd (ASX: S32) and Macquarie Group Limited (ASX: MQG).

At 31 December 2017 its top holdings were Commonwealth Bank of Australia (ASX: CBA), Westpac, BHP, National Australia Bank Ltd (ASX: NAB) and Australia and New Zealand Banking Group (ASX: ANZ). Its holdings are quite similar to the index.

Djerriwarrh’s performance was adequate but wasn’t exciting. However, I think there are quite a few LICs and shares that are better dividend options.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Wesfarmers Limited. The Motley Fool Australia owns shares of National Australia Bank Limited. 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.

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