Australian United Investment Company Ltd continues its amazing dividend run

Australian United Investment Company Ltd (ASX: AUI) reported its result for the half-year to 31 December 2017.

Australian United is one of the largest listed investment companies (LICs) in Australia, with total investable assets worth more than $1.25 billion.

Here are some of the highlights compared to the prior corresponding period.

Revenue from ordinary activities grew by 7.6% to $26.7 million. Profit after tax grew by 8.4% to $23.1 million. Excluding special dividends received, profit after tax grew by 8.4%.

The earnings per share based on the profit after tax was 18.7 cents, which was an increase of 8.1%. The interim dividend for this half-year will be 16 cents, compared to 15.5 cents in the prior corresponding period. The dividend will be fully franked.

Australian United has maintained or increased its dividend for over 25 years.

The net tangible asset (NTA) backing per share at the end of the half-year was $9.04, which represents a rise of 8.4% compared to the prior corresponding period.

Australian United’s net asset backing accumulation performance for the six months was a rise of 7.8%, compared to the rise of 8.4% in the S&P/ASX 200 Accumulation Index.

At the end of the half-year Australian United’s biggest five holdings were Commonwealth Bank of Australia (ASX: CBA), Australia and New Zealand Banking Group (ASX: ANZ), Westpac Banking Corp (ASX: WBC), National Australia Bank Ltd (ASX: NAB) and Wesfarmers Ltd (ASX: WES).

Foolish takeaway

I think Australian United is one of the best LICs because of its dedication to maintaining or growing the dividend every year, even though its performance and holdings are similar to most of its peers. I’d be happy to be a shareholder after another report of a dividend increase.

However, an even better dividend pick could be our top income choice for FY18.

OUR #1 dividend pick to grow your wealth over the new financial year is revealed for FREE here!

Financial year 2018 is here and The Motley Fool’s dividend detective Andrew Page has revealed his must buy dividend share to grow your wealth in 2018.

You might not know this market leader's name, but it's rapidly expanding into a highly profitable niche market here in Australia. Even better, the shares boast a strong, fully franked dividend that should balloon in the years to come. In other words, we're looking at the holy grail of incredible long-term growth potential AND income you can watch accruing in your account in real time!

Simply click here to grab your FREE copy of this up-to-the-minute research report on our #1 dividend share recommendation now.

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.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…


The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!